Franco-Nevada Provides Updates on Cobre Panama, Timing of Release of 2013 Results and 2014 Outlook

January 28, 2014

TORONTO, Jan. 28, 2014 /PRNewswire/ – Franco-Nevada Corporation
(“Franco-Nevada”) (TSX: FNV, NYSE: FNV) is pleased to provide the
following updates:

Cobre Panama Project

In August 2012, Franco-Nevada announced a $1 billion precious metals
stream financing with Inmet Mining Corporation (“Inmet”) for the Cobre
Panama project. Under the terms of that agreement, Franco-Nevada
committed to fund up to $1 billion after an initial $1 billion had been
spent by Inmet. In December 2012, Inmet updated its mine plan to
incorporate additional reserves. In March 2013, Inmet was acquired by
First Quantum Minerals Ltd. (“First Quantum”). First Quantum today has
provided a further update on the Cobre Panama project with the
following highlights from a Franco-Nevada perspective:

        --  Larger project:  The revised project will have installed
            capacity approximately 17% higher than the Inmet plan.

        --  Revised development timeframe:  First concentrate production is
            now expected in Q4 2017.

        --  Comparable capital cost: Capital is now estimated at $6.4
            billion including $1,465 million incurred at November 30, 2013.

Additional details about the revised Cobre Panama project is available
in First Quantum’s disclosure. Franco-Nevada has not yet started to
contribute to the project as First Quantum was revising its mine
plans. First Quantum has also requested changes to the existing
security and reporting requirements under the stream agreement.
Franco-Nevada will consider changes to achieve a mutually beneficial

2013 Results and 2014 Outlook

Franco-Nevada intends to release fourth quarter and full year 2013
results after market close on Wednesday, March 19, 2014. A conference
call and presentation is planned for the following morning on Thursday,
March 20, 2014 at 10:00 a.m. Eastern Time to discuss the results as
well as provide Franco-Nevada’s 2014 outlook. Interested investors are
invited to participate as follows:

        --  Via Conference Call: Toll-Free: (888) 231-8191; International:
            (647) 427-7450; Title: Franco-Nevada 2013 Results and 2014

        --  Conference Call Replay:A recording will be available until
            March 27, 2014 at the following numbers: Toll-Free (855)
            859-2056; International (416) 849-0833; Pass code 51386489.

        --  Webcast:A live audio webcast will be accessible at

To coincide with the 2013 results, Franco-Nevada will also have
available its new 2014 Asset Handbook.

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 development projects in the world. Its business
model provides investors with exploration optionality while limiting
exposure to operating and capital cost risks. 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.


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. 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
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, 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 Annual Report on 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.

SOURCE Franco-Nevada Corporation

Source: PR Newswire

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