Franco-Nevada Reports Strong 2012 Financial Results and Hosts Investor Day

  Franco-Nevada Reports Strong 2012 Financial Results and Hosts Investor Day

PR Newswire

TORONTO, March 19, 2013

TORONTO, March 19,  2013 /PRNewswire/ -  Franco-Nevada Corporation (TSX:  FNV) 
(NYSE: FNV) today  reported its  financial results  for the  three and  twelve 
months ended December 31, 2012.  Financial results are prepared in  accordance 
with International Financial Reporting Standards ("IFRS") and are expressed in
U.S. dollars  (unless  otherwise  noted). The  Company's  Consolidated  Annual 
Financial Statements and Management's Discussion and Analysis can be found  on 
Franco-Nevada's website at www.franco-nevada.com.

Selected Financial Information
  (in millions of U.S. dollars, except      Q4       Q4               2011
 per share amounts)                       2012      2011       2012
 Revenue                              $  114.1 $   118.5 $    427.0 $   411.2
 Operating income (loss)               (21.8)  (107.7)     138.4     28.0
 Net income (loss)                     (33.1)  (105.4)     102.6    (6.8)
 Basic earnings (loss) per share      $ (0.23) $  (0.80) $     0.72 $  (0.05)
 Dividends paid per share             $   0.15 $    0.12 $     0.54 $    0.32
                                                                    
 Adjusted EBITDA^(1)                  $   93.7 $    94.2 $    347.8 $   327.3
 Adjusted EBITDA^(1) per share        $   0.65 $    0.72 $     2.43 $    2.61
 Adjusted Net Income^(2)              $   47.0 $    40.8 $    171.0 $   136.0
 Adjusted Net Income^(2) per share    $   0.32 $    0.31 $     1.19 $    1.08
                                                                      
                                                     As at December 31,
                                                         2012     2011
 Cash and cash equivalents                           $    631.7 $   794.1
 Working capital                                         822.4    851.1
 Total Assets                                          3,243.9  2,901.0
 Total Shareholders' Equity                          $  3,149.1 $ 2,834.2

(1)  Adjusted EBITDA is defined by the Company as net income (loss) excluding
     income tax expense, finance income and costs, foreign exchange
     gains/losses, gains/losses on the sale of investments, income/losses from
     equity investments, depletion and depreciation and impairment charges
     related to royalties, streams, working interests and investments. See
     Non-IFRS Measures at the end of this press release.
(2) Adjusted Net Income is defined by the Company as net income (loss)
     excluding foreign exchange gains/losses, gains/losses on the sale of
     investments, impairment charges related to royalties, streams, working
     interests and investments, unusual non-recurring items, and the impact of
     taxes on all these items. See Non-IFRS Measures at the end of this press
     release.

This press release contains forward-looking statements. Reference should be
made to the Cautionary Statement on Forward Looking Information at the end of
this press release.

David Harquail, President and CEO, commented:

"This is our fifth full-year set of financial results since Franco-Nevada  was 
reborn as a public  company with our  IPO in late 2007.  The last five  years 
have proven that  our business  model, with its  focus on  gold royalties  and 
streams, can create  tremendous shareholder  value. We  experienced our  best 
year in 2012 with  record Revenues and Adjusted  Net Income. Our Cobre  Panama 
and Weyburn transactions in 2012  have added cornerstone assets with  expected 
lives of  40 or  more years.  We recorded  an impairment  on our  Arctic  Gas 
resource assets to reflect the current markets.

We expect our existing portfolio will continue to generate a growing number of
ounces over the  next five  years. We continue  to see  good opportunities  to 
further supplement this growth with further investments and, with our recently
expanded credit  facility,  we  are well-positioned  with  approximately  $1.4 
billion of capital available for further investments."

Portfolio Highlights & Outlook

Details of the individual revenue contributions by asset and commodity can  be 
found in our Management's Discussion and Analysis, Annual Information Form and
Form 40-F available on our web site.

2012 Portfolio Highlights

  *Gold - U.S.: Revenue increased to $101.7 million in 2012, compared to
    US$87.4 million in 2011, primarily due to higher net profits at Goldstrike
    and higher production at Bald Mountain.

  *Gold - Canada: Revenue increased to $46.0 million in 2012, compared to
    US$32.4 million in 2011, primarily due to higher production from our
    Golden Highway assets and higher contributions from Hemlo where our net
    profit interest ("NPI") reached payout supplementing a revenue royalty.

  *Gold - Australia: Continued growth at our Australian assets was primarily
    due to the commencement of production at the Garden Well mine in addition
    to the original Moolart Well mine, both covered by our Duketon royalty,
    and an addition to our royalty over the Bronzewing gold project in early
    2012.

  *Gold - Rest of World: Revenue decreased to $161.3 million in 2012,
    compared to US$177.5 million in 2011, primarily due to the completion of
    minimum payment obligations by Cooke 4 (Ezulwini) in 2011 and production
    interruptions in South Africa which were resolved in November. Palmarejo
    had slightly lower production but remained the largest revenue generator
    before the deduction for the cost of stream ounces. Higher royalty
    revenues were realized from Tasiast, Edikan (a recent acquisition) and
    Subika where operations surpassed an aggregate production threshold in
    2012.

  *PGM Assets: Revenue decreased to $60.7 million in 2012, compared to $63.9
    million, due to lower average PGM prices and lower production from
    Stillwater partially offset by higher production from the Sudbury assets.

  *Oil & Gas Assets: Revenue increased to $40.9 million in 2012, compared to
    $34.9 million in 2011, primarily due to additional investments at the
    Weyburn Unit but revenue growth was muted by a higher price discount for
    Canadian oil. 2012 oil & gas revenue was generated 95% from oil and 5%
    from gas.

2013 Guidance

  *Guidance - The Corporation is expecting to receive a total of 215,000 to
    235,000 gold equivalent ounces from its mineral assets and $55-$65 million
    in revenue from its oil & gas assets. This compares to approximately
    230,000 gold equivalent ounces received from mineral assets and $40.9
    million in revenue recorded from oil & gas assets in 2012. Of the 215,000
    to 235,000 gold equivalent ounces, the Corporation expects to receive
    100,000 to 110,000 gold equivalent ounces in 2013 under its various stream
    agreements compared with 114,000 ounces in 2012.

    Gold equivalent royalty and stream ounces are estimated for gross ounces,
    and in the case of stream ounces, before the payment of approximately $400
    per gold equivalent ounce paid by the Corporation. Platinum and palladium
    metals have been converted to gold equivalent ounces using commodity
    prices of $1,600/oz Au, $1,600/oz Pt and $725/oz Pd. The WTI oil price is
    assumed to average $90 per barrel with similar price discounts for
    Canadian oil as experienced in 2012. 2013 guidance assumes the continued
    steady state of operations from its assets and is also based on the
    assumptions set out below.

  *Gold - U.S.: Goldstrike royalty ounces for 2013 are expected to be lower
    than 2012. Barrick announced that construction activities surrounding its
    thiosulfate project are expected to reduce capacity at the autoclave
    facility. As well, Barrick announced higher expected capital expenditures
    during 2013. These developments will impact our NSR royalty ounces and
    NPI royalty ounces, respectively but the investment is expected to
    accelerate production from stockpiles and benefit future royalty
    revenues. At Gold Quarry, the Company expects higher royalty ounces for
    2013 than in prior years based on stockpiled ore. Royalty ounces from Bald
    Mountain, Hollister and Mesquite are expected to be lower in 2013 due to
    mining sequencing at Bald Mountain, creditor protection activities at
    Hollister and mining on ground that attracts a lower royalty at Mesquite.

  *Gold - Canada: Detour Lake poured its first gold in February 2013. Detour
    Gold Corporation ("Detour") announced that it expects to produce 350,000
    to 400,000 ounces of gold in 2013 from Detour Lake on which the
    Corporation has a 2% NSR. At Hemlo, the Corporation's NPI on the down dip
    extension of the mine is expected to benefit from a full year of
    production as initial capital costs have been recovered. At Timmins West,
    where the Corporation has a 2.25% NSR, Lake Shore announced that it
    expects to produce 120,000-135,000 ounces of gold in 2013 and reach its
    full production rate of 140,000 to 160,000 ounces by the end of 2013.

  *Gold - Australia: Duketon gold production is expected to increase with
    Moolart Well being supplemented by a full year of Garden Well production.
    The operator, Regis Resources Ltd. ("Regis"), has announced plans to add a
    third operation, Rosemont, later in 2013.

  *Gold - Rest of World: Palmarejo is expected to remain a significant
    revenue contributor and Coeur d'Alene Mines Corporation ("Coeur") has
    forecasted 2013 gold production of 98,000 to 105,000 ounces. The
    Corporation's 50% gold stream over Palmarejo includes an annual minimum
    provision of 50,000 ounces, payable monthly. At Mine Waste Solutions
    ("MWS"), the Corporation expects increased stream ounces in 2013 compared
    to 2012 reflecting fewer expected interruptions under the new ownership of
    AngloGold Ashanti Limited ("AngloGold Ashanti"). At Tasiast, where the
    Corporation has a 2% NSR, Kinross Gold Corporation ("Kinross") has
    announced that it expects a reduction in its overall production for 2013
    citing lower grades. Kinross' updated pre-feasibility study for a mill
    expansion is expected in 2013. At Subika, royalty ounces are expected to
    be higher in 2013 as a full year of production will be earned as Subika
    surpassed aggregate production hurdles in Q3 2012. At Edikan, where the
    Corporation has an effective 1.5% NSR, Perseus Mining Limited has
    announced 2013 gold production guidance of 209,000 to 229,000 ounces. At
    Cooke 4 (Ezulwini) the operation resumed production in November 2012 and
    fewer production interruptions are expected in 2013.

  *PGMs: Sudbury stream ounces are expected to decline in 2013 as the
    operator, KGHM International Ltd. ("KGHM") confirmed its intention to put
    Podolsky on care and maintenance. In addition, KGHM is expected to
    continue to focus on mining nickel ore at McCreedy which does not generate
    payable PGMs attributable to the Corporation. Development is ongoing at
    Morrison and production is expected to increase in 2013. At Stillwater,
    2013 royalty ounces are expected to be consistent with historical levels.

  *Other minerals: At the Peculiar Knob iron-ore project in South Australia,
    production has begun and the Corporation expects to receive full-year
    revenue in 2013.

  *Oil & Gas: The Corporation expects 2013 revenue to be higher at $55
    million to $65 million. This reflects the additional investments in the
    Weyburn Unit in 2012 offset partly by a price discount for Canadian oil.

  *Investments: The Corporation expects to fund approximately $270.0 million
    in 2013 in connection with its precious metals stream agreement on Cobre
    Panama. The Corporation has assumed no material changes to the timing or
    development of the project should First Quantum Minerals Ltd.'s ("First
    Quantum") bid for Inmet Mining Corporation ("Inmet") be successful.

Five Year Outlook (2017)

Our  five  year  outlook  is  based  upon  the  respective  operators'  public 
projections for each asset. Using the same commodity price assumptions as  for 
2013 and  assuming no  other acquisitions,  the Company  expects its  existing 
portfolio to  generate by  2017  between 300,000  to 325,000  gold  equivalent 
ounces and $70 to  $80 million in  oil & gas revenues.  This outlook is  also 
based on the following assumptions:

  *Detour Gold: The outlook assumes the successful commissioning of the new
    operation to produce on average 657,000 ounces per year over the life of
    mine. No further expansion has been assumed within the next five years.

  *Tasiast: The outlook assumes no material expansion within the five year
    period as expansion plans have not been publicly disclosed. Production
    levels in 2017 are assumed to be comparable to current production levels.

  *Cobre Panama: The outlook assumes a successful commissioning of the Cobre
    Panama project with a full year of production in 2017 as projected by
    Inmet.  In the event that First Quantum's bid for Inmet is successful, the
    outlook assumes no material changes to the timing or development of the
    project. No further expansions are incorporated in this period. In
    December 2012, Inmet announced updated reserve and resource estimates for
    its Cobre Panama project as well as an extension to the estimated mine
    life. The expected mine life of the Cobre Panama project based on a
    revised mine plan has been extended to 40 years from 31 years.

  *New mines: The outlook assumes new mines will be contributing to the
    portfolio at levels close to the current operator's projections at
    Rosemont (owned by Augusta Resource), Phoenix (owned by Rubicon Minerals),
    Agi Dagi (owned by Alamos Gold), Perama Hill (owned by Eldorado Gold),
    Duketon (comprising Rosemont and Erlistoun and owned by Regis Resources)
    and Peculiar Knob (owned by Arrium Limited). Increased production is
    expected by 2017 at Subika (operated by Newmont Mining) and Holt (operated
    by St Andrews). Lower production is expected by 2017 at Palmarejo and
    Goldstrike. New Prosperity has not been included in the guidance to 2017
    pending progress on permitting.

  *Oil & gas: The outlook assumes the ongoing enhanced oil recovery capital
    program at Weyburn and Canadian oil price differentials returning to
    historic norms.

  *Beyond 2017: The Company expects to incorporate expansions at its Tasiast,
    Detour and Cobre Panama assets in its future guidance. Receipt of permits
    at New Prosperity would provide a material added contribution.

Financial Results

Revenue

  *Revenue was $114.1 million for the fourth quarter of 2012 compared with
    $118.5 million for the fourth quarter of 2011. The decrease in revenue for
    the quarter was partly attributable to lower production at Palmarejo and
    the completion of minimum stream payments from Cooke 4 (Ezulwini) in 2011.
    These decreases were partially offset by higher revenue from Goldstrike
    which contributed $19.4 million to revenue in Q4 2012.

  *Revenue for 2012 was $427.0 million compared with $411.2 million for 2011,
    an increase of 4%. Growth in revenue for the year was driven by higher
    production at Goldstrike, higher average commodity prices and recent
    acquisitions.

  *Revenue for the fourth quarter was earned 87% from precious metal assets
    (74% gold; 13% PGMs), 11% from oil & gas (10% oil; 1% gas) and 2% from
    other minerals. For 2012, precious metals revenue represented 89% (75%
    gold; 14% PGMs), oil & gas 10% (9% oil; 1% gas) and 1% for other minerals.
    For 2012, geographically, 83% of revenue came from North America (28% US,
    31% Canada and 24% Mexico), 12% from Africa, 4% from Australia and 1% from
    other jurisdictions. The components of revenue were earned as follows: 42%
    revenue-based, 45% streams, 9% profit-based, 3% working interests and 1%
    other.

Costs and expenses

  *Costs of sales include the costs of gold equivalent ounces purchased under
    stream agreements, oil & gas production taxes, operating costs on oil &
    gas working interests and net proceeds taxes on mineral interests. Costs
    of sales for the fourth quarter of 2012 were $13.7 million which included
    $10.3 million for the cost of stream ounces. Depletion and depreciation
    was $32.8 million compared with $33.2 million recorded in the fourth
    quarter of 2011. Depletion was lower due to lower depletion on Cooke 4
    (Ezulwini), Gold Quarry and Palmarejo, partially offset by higher
    depletion on oil & gas assets, Goldstrike and the Sudbury assets.

  *For the year ended December 31, 2012, costs of sales were $59.2 million
    compared to $63.3 million for the year ended December 31, 2011. The
    decrease was attributable in part to the lower volume of stream ounces
    received during 2012 from our international stream properties. The
    decrease was partially offset by higher oil & gas production taxes
    attributable to the acquisition of Weyburn Unit working interest and
    higher Nevada net proceeds taxes as higher revenue was generated from our
    Nevada royalties.

  *During the fourth quarter, the Company recorded impairment charges of
    $74.1 million on its Arctic Gas assets. Given the nature of the
    exploration assets and development profile, management determined that
    indications of impairment were evident and completed an impairment
    analysis. In addition, the Company recorded $8.6 million in impairment
    charges related to certain long-term investments held which experienced a
    significant or prolonged decline in their value. Please refer to the
    Company's annual consolidated financial statements and management's
    discussion and analysis for a more detailed discussion.

  *Income tax expense was $10.9 million and $52.3 million for the three and
    twelve months ended December 31, 2012, respectively.

Net Income

  *Net loss for the fourth quarter of 2012 was $33.1 million, or $0.23 per
    share, and Adjusted Net Income^(2) for the fourth quarter was $47.0
    million, or $0.32 per share. For the year ended December 31, 2012, net
    income was $102.6 million, or $0.72 per share, compared with a net loss of
    $6.8 million, or $0.05 per share, for 2011. Adjusted Net Income^(2) for
    the year ended December 31, 2012 was $171.0 million, or $1.19 per share,
    compared with $136.0 million, or $1.08 per share, for the year ended
    December 31, 2011.

  *Adjusted EBITDA^(1) was $93.7 million, or $0.65 per share, and $347.8
    million, or $2.43 per share, respectively, for the three and twelve months
    ended December 31, 2012. Our definitions of these non-IFRS financial
    measures and the reconciliations to IFRS measures can be found in the
    Company's Annual Management's Discussion and Analysis and at the end of
    this press release.

Statement of Financial Position

  *As at December 31, 2012, Franco-Nevada had a strong financial position
    with cash, cash equivalents and short-term investments of $779.9 million,
    working capital of $822.4 million, investments valued at $108.4 million,
    of which $73.9 million are held in publicly traded equity investments and
    no debt or hedges. On January 23, 2013, the Company replaced its $175
    million credit facility with a four year $500 million unsecured revolving
    credit facility which is currently undrawn.

Dividend Declaration

  *Today, the Board of Directors of Franco-Nevada declared the monthly
    dividend of $0.06 per share for each of April, May and June 2013. The
    April dividend will be paid on April 25, 2013 to shareholders of record on
    April 11, 2013, the May dividend will be paid on May 30, 2013 to
    shareholders of record on May 16, 2013 and the June dividend will be paid
    on June 27, 2013 to shareholders of record on June 13, 2013.

  *The Canadian dollar equivalent is determined based on the noon rate posted
    by the Bank of Canada on March 19, 2013. 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.

Shareholder Information and Investor Day

The  complete  Annual  Consolidated  Financial  Statements  and   Management's 
Discussion and  Analysis  will  be available  on  Franco-Nevada's  website  at 
www.franco-nevada.com  and  on  SEDAR  at   www.sedar.com  and  on  EDGAR   at 
www.sec.gov.

An Investor Day and conference call is planned for tomorrow, Wednesday,  March 
20, 2013, at 10:00 a.m. Eastern Time to discuss the Q4 2012 results as well as
provide further background and  details on the  Company's asset portfolio  and 
outlook.

Interested investors are invited to participate as follows:

  *In Person: St Andrew's Club & Conference Centre, 27^th floor, 150 King
    Street West, Toronto. Participants are asked to RSVP via
    info@franco-nevada.com.

  *Via Conference Call: Local: 647-427-7450; Toll-Free: 1-888-231-8191;
    Title: Franco-Nevada Investor Day.

  *Conference Call Replay: A recording will be available until March 27, 2013
    at the following numbers:

    Local: 416-849-0833; Toll-Free: 1-855-859-2056; Pass code: 18181024.

  *Webcast: A live audio webcast will be accessible at www.franco-nevada.com.

  *Slides: A presentation to accompany the conference call will be available
    on the Company's website prior to the call.

Corporate Summary

Franco-Nevada is a gold focused royalty and stream company. The Company has a
diversified portfolio of cash-flow producing  assets and interests in some  of 
the largest new gold development and  exploration projects in the world.  Its 
business model benefits from rising commodity prices and new discoveries while
limiting exposure to operating and capital cost inflation. Franco-Nevada  has 
substantial cash with no debt and  is generating cash flow from its  portfolio 
that is  being  used to  expand  its  portfolio and  pay  monthly  dividends. 
Franco-Nevada's common shares trade under the  symbol FNV on both the  Toronto 
and New York stock exchanges.

FORWARD LOOKING STATEMENTS

Certain information contained in this press release contains "forward  looking 
information" and "forward looking statements" within the meaning of applicable
Canadian securities laws and the  United States Private Securities  Litigation 
Reform Act 1995,  respectively, which  may include,  but are  not limited  to, 
statements with respect to future  events or future performance,  management's 
expectations  regarding   Franco-Nevada's  growth,   results  of   operations, 
estimated  future  revenues,  requirements  for  additional  capital,  mineral 
reserve and mineral resource estimates, production estimates, production costs
and revenue,  future demand  for and  prices of  commodities, expected  mining 
sequences, business  prospects  and  opportunities.  In  addition,  statements 
(including data  in tables)  relating to  reserves and  resources are  forward 
looking statements,  as  they involve  implied  assessment, based  on  certain 
estimates and assumptions, and  no assurance can be  given that the  estimates 
will be realized. Such forward looking statements reflect management's current
beliefs and are based on information currently available to management. Often,
but not always,  forward looking statements  can be identified  by the use  of 
words such  as  "plans",  "expects",  "is  expected",  "budget",  "scheduled", 
"estimates",  "forecasts",  "predicts",   "projects",  "intends",   "targets", 
"aims",  "anticipates"  or  "believes"   or  variations  (including   negative 
variations) of such words  and phrases or may  be identified by statements  to 
the effect that certain actions "may", "could", "should", "would", "might"  or 
"will" be  taken, occur  or be  achieved. Forward  looking statements  involve 
known and unknown risks, uncertainties and other factors, which may cause  the 
actual results, performance or achievements of Franco-Nevada to be  materially 
different from any  future results, performance  or achievements expressed  or 
implied by the  forward looking statements.  A number of  factors could  cause 
actual events  or  results  to  differ materially  from  any  forward  looking 
statement, including, without  limitation, fluctuations in  the prices of  the 
primary commodities  that drive  royalty and  stream revenue  (gold,  platinum 
group metals,  copper,  nickel, uranium,  silver,  iron-ore and  oil  &  gas), 
fluctuations in the value of the Canadian and Australian dollar, Mexican peso,
and any  other currency  in which  revenue is  generated, relative  to the  US 
dollar, changes  in  national  and  local  government  legislation,  including 
permitting and  licensing  regimes  and  taxation  policies,  regulations  and 
political or economic developments in any of the countries where properties in
which Franco-Nevada holds a royalty, stream  or other interest are located  or 
through which they are held, risks related to the operators of the  properties 
in which Franco-Nevada holds  a royalty, stream  or other interest,  including 
changes  in  the  ownership  and  control  of  such  operators,  influence  of 
macroeconomic developments, business opportunities  that become available  to, 
or are pursued by  Franco-Nevada, reduced access to  debt and equity  capital, 
litigation, title, permit or license disputes  related to interests on any  of 
the properties  in  which  Franco-Nevada  holds a  royalty,  stream  or  other 
interest, whether  or not  the  Company is  determined  to have  PFIC  status, 
excessive cost escalation as well as development, permitting,  infrastructure, 
operating or  technical  difficulties  on  any  of  the  properties  in  which 
Franco-Nevada holds a royalty,  stream or other interest,  rate and timing  of 
production differences from resource  estimates, risks and hazards  associated 
with the business of development and mining on any of the properties in  which 
Franco-Nevada holds a royalty,  stream or other  interest, including, but  not 
limited to  unusual or  unexpected  geological and  metallurgical  conditions, 
slope failures  or cave-ins,  flooding and  other natural  disasters or  civil 
unrest, and the integration of acquired assets. The forward looking statements
contained in this press release are based upon assumptions management believes
to be reasonable, including, without limitation, the ongoing operation of  the 
properties in which Franco-Nevada holds a royalty, stream or other interest by
the owners or operators  of such properties in  a manner consistent with  past 
practice, the accuracy of public statements and disclosures made by the owners
or operators of such underlying properties, no material adverse change in  the 
market price  of  the  commodities  that underlie  the  asset  portfolio,  the 
Company's ongoing  income and  assets relating  to determination  of its  PFIC 
status, no adverse development in respect of any significant property in which
Franco-Nevada holds a royalty, stream or other interest, accuracy of  publicly 
disclosed expectations for the development  of underlying properties that  are 
not yet in production, integration of  acquired assets and the absence of  any 
other factors that could cause actions, events or results to differ from those
anticipated, estimated or intended. However,  there can be no assurance  that 
forward looking statements will  prove to be accurate,  as actual results  and 
future  events  could  differ  materially  from  those  anticipated  in   such 
statements and readers are cautioned  that forward looking statements are  not 
guarantees of future performance.  Franco-Nevada cannot assure investors  that 
actual results  will  be consistent  with  these forward  looking  statements. 
Accordingly, readers  should  not  place undue  reliance  on  forward  looking 
statements due to the inherent uncertainty therein. For additional information
with respect  to risks,  uncertainties and  assumptions, please  refer to  the 
"Risk Factors" section of Franco-Nevada's Annual Information Form, as well  as 
Franco-Nevada's most recent  Management's Discussion and  Analysis filed  with 
the Canadian securities regulatory authorities  on SEDAR at www.sedar.com  and 
Franco-Nevada's most  recent Form  40-F  filed with  the U.S.  Securities  and 
Exchange Commission on  EDGAR at www.sec.gov.  The forward looking  statements 
herein are made as of  the date of this  press release only and  Franco-Nevada 
does not  assume  any obligation  to  update or  revise  them to  reflect  new 
information, estimates or  opinions, future  events or  results or  otherwise, 
except as required by applicable law.

NON-IFRS MEASURES: Adjusted Net  Income and Adjusted  EBITDA are intended  to 
provide additional information only and  do not have any standardized  meaning 
prescribed under  IFRS and  should not  be  considered in  isolation or  as  a 
substitute for  measures of  performance prepared  in accordance  with  IFRS. 
These measures are not necessarily indicative of operating profit or cash flow
from operations as determined under IFRS. Other companies may calculate these
measures differently. For a reconciliation  of these measures to various  IFRS 
measures, please see below or the  Company's current MD&A disclosure found  on 
the Company's website and on SEDAR and on EDGAR.

Non-IFRS Measures Reconciliation

                                          Three months ended       Year ended
                                                 December 31,    December 31,
(in millions except per share amounts)        2012     2011   2012    2011
                                                                     
Net Income (Loss)                          $ (33.1) $ (105.4) $ 102.6 $  (6.8)
 Income tax expense                          10.9      4.5   52.3    45.9
 Finance costs                                0.2      0.2    1.1     2.3
 Finance income                             (1.4)    (1.4)  (9.6)   (4.3)
 Depletion and depreciation                  32.8     33.2  126.7   130.6
 Impairment on stream interests              74.1    151.2   74.1   151.2
 Impairment on investments                    8.6     17.5    8.6    17.5
 Foreign exchange gains/losses and other                           
  expenses                                     1.6     (3.6)   (8.0)      3.1
 Loss from equity investee                      -        -      -     1.7
 Gain on investments                            -    (2.0)      -  (13.9)
Adjusted EBITDA                            $   93.7 $    94.2 $ 347.8 $  327.3
                                                               
Basic Weighted Average Shares Outstanding    145.3    131.3  143.1   125.4
Adjusted EBITDA per share                  $   0.65 $    0.72 $  2.43 $   2.61
                                                                     
 Net Income (Loss)                        $ (33.1) $ (105.4) $ 102.6 $  (6.8)
 Foreign exchange (gain) loss and other                            
  expenses, net
  of income tax                              (0.5)     (0.3)   (0.1)      2.9
 Gain on acquisition of Gold Wheaton/sale                          
  of
  investments, net of income tax                 -     (1.2)       -   (20.0)
 Mark-to-market changes on derivative         1.4    (2.1)  (7.2)       -
 Loss from equity investee, net of income                          
  tax                                            -         -       -      1.7
 Impairment of stream/royalty interests      74.1    130.2   74.1   130.2
 Impairment of investments                    7.6     15.1    7.6    15.1
 Transaction costs of Gold Wheaton, net                            
  of income tax                                  -         -       -      7.8
 Foreign withholding taxes                      -      4.5  (3.5)     4.5
 One-time deferred tax recovery charge      (2.5)        -  (2.5)       -
 Credit facility costs written off, net                            
  of income tax                                  -         -       -      0.6
Adjusted Net Income                        $   47.0 $    40.8 $ 171.0 $  136.0
Adjusted Net Income per share              $   0.32 $    0.31 $  1.19 $   1.08









SOURCE Franco-Nevada Corporation

Contact:

please go to our website atwww.franco-nevada.com or contact:

Stefan Axell
Manager, Investor Relations
416-306-6328
info@franco-nevada.com

Sandip Rana
Chief Financial Officer
416-306-6303
 
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