Franco-Nevada Reports Second Quarter 2012 Results

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.

Commentary
David Harquail, President and CEO, made the following comments:

"Franco-Nevada had another solid quarter from its producing assets and is expecting a stronger second half. The portfolio has been strengthened by changes in operators at our South African gold stream assets. We also continue to be very encouraged by the ongoing positive exploration and project developments from our pipeline of advanced assets in our portfolio. Our corporate focus remains on investing our available capital to add material new assets to the portfolio."

2012 Outlook

For the six months ended June 30, 2012 , attributable royalty and stream production was in line with the Company's original expectations and the production outlook for the remainder of 2012 remains unchanged. However, due to the weakening of commodity prices experienced during the first half of 2012, the Company currently anticipates that overall 2012 revenue will be at the low end of its previously provided guidance of $430 million to $460 million .

Portfolio Highlights

Details of the individual revenue contributions by asset and commodity can be found in our Management's Discussion and Analysis available on our website. Details on individual assets can be found in our Asset Handbook available on our website.

Producing Assets

• Gold - U.S.: Our U.S. assets generated $26.8 million in revenue for the second quarter of 2012, an increase of 43.3% over the second quarter of 2011, with growth coming from Bald Mountain and Goldstrike. Bald Mountain had increased production due to a mine expansion that was completed towards the end of 2011. Growth at Goldstrike was due to the net profits interest ("NPI") royalty which contributed $8.2 million to quarterly revenue in 2012 and the net smelter return ("NSR") royalty which generated $5.0 million in revenue.
• Gold -Canada: Canadian assets performed well with revenue of $9.7 million for the quarter. The Musselwhite NPI, Golden Highway assets and Timmins West collectively contributed $5.2 million in revenue in the quarter compared to $2.0 from these assets in 2011. Musselwhite began generating revenue in the latter part of 2011 and Timmins West was a Q1 2012 acquisition.
• Gold -Australia: Revenue from our Australian assets totaled $2.2 million for the three months ended June 30, 2012 compared to $2.5 million for the three months ended June 30, 2011 .
• Gold - International: International assets contributed $42.7 million to revenue in the quarter with growth coming from Palmarejo, Edikan and Tasiast. In the third quarter of 2012, MWS and Ezulwini were acquired by AngloGold Ashanti Limited and Gold One International Limited, respectively, both experienced, well-funded South African operators.
• PGM Assets: PGM revenue was $11.4 million for the second quarter of 2012 compared to $23.3 million for the second quarter of 2011, which was attributable mainly to lower average PGM prices.
• Oil & Gas Assets:Oil & gas revenue was $9.0 million during the quarter of which 79% was earned from oil.

Advanced Assets

• Detour Lake project: Detour Gold Corporation reported that the project has achieved 75% construction completion and remains on budget and on schedule for gold production to start in the first quarter of 2013. The Company has a 2% NSR on all the current mineral resources at the Detour Lake project.
• Hemlo NPI: The Company has both NSR and NPI royalties on the downdip western portion of Barrick Gold Corporation's Hemlo operation. Management expects to begin earning revenue from the NPI royalty in the third quarter of 2012.
• Subika: The Company holds a 2% NSR on the southern end of Newmont's Ahafo Mine in Ghana ("Subika"), which the Company anticipates will start to generate revenue in the second half of 2012.
• Duketon expansions: Current production from the Moolart Well mine is expected to be supplemented from initial production from the Garden Well project beginning in the third quarter of 2012. In addition, Regis Resources has reported infill drilling at the Rosemont deposit with the aim of reporting initial reserve numbers in late 2012.
• Ağı Daği & Çamyurt: Alamos Gold Inc. released results from its pre-feasibility study as well as an initial inferred mineral resource estimate for Çamyurt. The study envisions mine production starting in 2016. The Company holds a 2% NSR which covers the Ağı Daği and most of the Çamyurt project areas.
• Rosemont Copper project: Augusta Resource Corporation has provided updates on permitting milestones and an updated feasibility study which included an increase in proven and probable mineral reserves.
• South Kalgoorlie: Alacer Gold Corp. has announced its intention to defer an expansion of the HBJ mine on which Franco-Nevada holds a royalty which covers the mineralisation in Location 50.
• General announcements: Operators have made recent announcements regarding additional reserves, resources or positive drilling results on properties upon which Franco-Nevada has royalties. These include: Perseus Mining'sEdikan Gold Mine, Queenston Mining'sAK and Upper Canada deposits, La Mancha Resources'Ity mine, Lake Shore Gold'sGold River Trend deposit, Lumina Copper Corp'sTaca Taca project, Kirkland Lake Gold'sMacassa Mine, Jaguar Mining's Gurupi project and Seabridge Gold's Courageous Lakeproject.

Financial Results

Revenue

• Revenue was $102.7 million for the second quarter of 2012 compared with $106.3 million for the second quarter of 2011. The decrease was attributable to the Company's Sudbury and Ezulwini assets as Franco-Nevada did not benefit from guaranteed minimum payments from Ezulwini in 2012 and the Sudbury mines had lower production. The decrease was partially offset by increased revenue at Bald Mountain, Goldstrike NPI, Palmarejo, Edikan and Musselwhite. Revenue for the six months ended June 30, 2012 was $207.7 million compared to $179.4 million for the six months ended June 30, 2011 , an increase of 15.8%.
  
  
• Revenue for the three months ended June 30, 2012 was earned 90% from precious metal assets (79% gold; 11% PGMs), 9% from oil & gas (7% oil; 2% gas) and 1% from other minerals. Geographically, 84% of revenue came from North America (31% US, 25% Canada and 28% Mexico ), 3% from Australia and 13% from Other (12% Africa and 1% Other). The components of revenue were earned as follows: 42% revenue-based, 46% streams, 9% profit-based, 3% working interests and 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 three months ended June 30, 2012 were $15.6 million which included $12.1 million for the cost of stream ounces. Depletion and depreciation was $31.0 million , a decrease of 17%, over $37.3 million recorded in the three months ended June 30, 2011 . Depletion was lower due to lower production volumes from the Sudbury assets and the reduction in ounces purchased from Ezulwini. Depletion and depreciation for the six months ended June 30, 2012 and 2011, was $62.7 million and $62.7 million , respectively.
  
  
• Income tax expense was $14.3 million for the three months ended June 30, 2012 which included a current income tax expense of $9.9 million and a deferred income tax expense of $4.4 million . For the six months ended June 30, 2012 , income tax expense was $26.9 million with a $21.2 million current tax expense and a $5.7 million deferred tax expense.

Balance Sheet and Capital Structure

• As at June 30, 2012 , Franco-Nevada had a strong financial position with no debt or hedges, working capital in excess of $1.0 billion , and investments valued at $95.0 million , of which $73.9 million are held in publicly traded equity investments. The Company has an undrawn $175.0 million unsecured revolving term credit facility available.
  
  
• As at August 8, 2012 , the Company had outstanding 145.0 million shares, 11.6 million warrants (including 5.1 million assumed from the acquisition of Gold Wheaton), 2.5 million stock options, 0.3 million Gold Wheaton stock options, 0.1 million restricted share units and a special warrant exerciseable into 2 million warrants.

Dividend Declaration

• Today, the Board of Directors of Franco-Nevada declared the monthly dividend of $0.05 per share for each of October, November and December 2012. The October dividend will be paid on October 25, 2012 to shareholders of record on October 11, 2012 , the November dividend will be paid on November 29, 2012 to shareholders of record on November 15, 2012 and the December dividend will be paid on December 20, 2012 to shareholders of record on December 6, 2012 .
  
  
• The Canadian dollar equivalent is determined based on the noon rate posted by the Bank of Canada on August 7 , 2012. 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

The complete Financial Statements and Management's Discussion and Analysis can be found today on Franco-Nevada's website atwww.franco-nevada.comand by tomorrow on SEDAR atwww.sedar.comand EDGAR atwww.sec.gov. Management will host a conference call on August 9, 2012 at 10:00 a.m. Eastern Time to review the results. Interested investors are invited to participate as follows:

• Conference Call: Local: 647-427-7450; Toll-Free: 1-888-231-8191; Title: Franco-Nevada Corporation Second Quarter 2012 Financial Results.
• Conference Call Replay: A recording will be available until August 16, 2012 at the following numbers:
  Local: 416-849-0833; Toll-Free: 1-855-859-2056; Pass code: 14223080.
• Webcast: A live audio webcast will be accessible atwww.franco-nevada.com.
• Slides: A presentation to accompany the conference call will be available on the Company's website prior to the call.