Franco-Nevada Corporation (TSX: FNV) (NYSE: FNV) is pleased to announce that its wholly-owned subsidiary has acquired from Compañía de Minas Buenaventura S.A.A. and its subsidiary, an existing 1.8% net smelter return royalty on all minerals covering Newmont Corporation’s Yanacocha mine and adjacent mineral properties located in Peru. Consideration for the Royalty consists of $210 million paid in cash on closing, plus a contingent payment of $15 million in Franco-Nevada common shares, payable upon achievement of certain conditions as described below.

“We are pleased to partner with Buenaventura to acquire this existing Royalty which adds immediately cash flowing gold production and growth from a leading gold operator,” said Paul Brink, President & CEO of Franco-Nevada. “Yanacocha has been one of the largest gold mines globally and the district covered by the Royalty remains highly prospective with over 47 Moz AuEq⁽¹⁾ in total reserves and resources. The Royalty covers current oxide production, the planned sulfide project and high-quality growth projects, including Conga, which together have the potential to add decades of contributions to Franco-Nevada.”

Transaction Overview:

• Immediately Cash Flowing: Yanacocha is currently producing from the open pit oxides and will contribute immediate GEOs to Franco-Nevada. Newmont’s guidance is to produce 290 koz Au at Yanacocha in 2024.
• Sulfide Project: The Royalty covers the Yanacocha Sulfides Project which is a large copper-gold project with 1.2 Mt Cu total reserves and resources and 7.2 Moz Au total reserves and resources⁽²⁾ located within the footprint of the current oxide operations and is expected to produce more than 500 koz AuEq per year in the first five years and extend the mine plan beyond 2040. Newmont has deferred a decision on developing the Yanacocha Sulfides Project until at least 2025 as it consolidates its recent acquisition of Newcrest Mining Limited.
• Project Optionality: The Royalty also covers the Conga project and other known resources on the property adding long-term optionality. Conga is a large copper-gold porphyry adjacent to Yanacocha with indicated resources of 14.6 Moz Au and 4.0 Blbs Cu and inferred resources of 2.9 Moz Au and 0.9 Blbs Cu⁽¹⁾.
• Exploration and Expansion Potential: In addition to the producing oxides and projects outlined above, the Royalty covers a large land package of more than 750 km² that has produced more than 40 Moz Au and hosts numerous additional targets and potential for mine life extensions.

Key Financing Terms:

• $210 million in cash was paid to Buenaventura and its affiliate on closing, whereby a wholly-owned subsidiary of Franco-Nevada acquired their Peruvian subsidiary Chaupiloma Dos De Cajamarca, which holds the Royalty.
• A contingent payment of 118,534 common shares of Franco-Nevada, worth $15 million as at signing, will be payable to Buenaventura and its affiliate upon the Conga project achieving commercial production for a full year prior to the 20^th anniversary of closing.
• Franco-Nevada now holds a right of first refusal on the sale by Buenaventura and its affiliate of certain of their royalty interests, including an incremental royalty of 0.5% NSR on the Conga project and two additional royalties on certain other parts of the property.

Franco-Nevada Corporate Summary

Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the 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. It trades under the symbol FNV on both the Toronto and New York stock exchanges.

Additional Information

Scientific and technical information included in this news release has been reviewed by Amri Sinuhaji, P.Eng, Vice President, Mining of Franco-Nevada, a non-independent qualified person under National Instrument 43-101.