Message FNV: TSX | NYSE from our CEO Making Responsible Investments ESG Ratings Ongoing Asset Management Franco-Nevada When negotiating new investments, we endeavour to negotiate such arrangements such that the operator, as appropriate, commits to implement the RGMPs, and to provide us with information from our operators as well as to mitigate risk, including ESG-related risk. Royalty and stream agreements differ in many respects, but typically include the following types of provisions: Making Responsible Reporting Obligations: Operating Covenants: Security & Remedies: Investments Our royalty and streaming agreements Given our business model, following Streaming agreements afford us typically contain a series of reporting our initial acquisition of royalties the ability to terminate and recover Guiding Principles obligations including the delivery of or streams, we are not involved in specific remedies upon a material monthly and annual reports, updated our operators’ development and breach of the contractual provisions mine plans, forecasts and other documentation, operation of the applicable projects. However, our providing us with the flexibility to exit unsuitable which serve to keep us informed of operations. royalty and streaming agreements typically contain arrangements. In some instances, we have security Operators Operators are also typically required to notify us certain operating covenants designed to ensure that arrangements in respect of our royalty and stream of any material adverse changes to a project or operators are conducting operations in accordance interests (including share, pledges, account pledges, its operations. Upon a material adverse change with applicable law and responsible practices, mortgages and corporate guarantees), which Approach to occurring, we maintain regular communication and including ESG-related standards such as the RGMPs would enable us to exert influence in the event of Climate Change offer our guidance and expertise to the operators and ICMM, CIM or TSM mining principles. bankruptcy, insolvency or other event of a default. where appropriate. These reporting obligations keep Such arrangements provide additional protections us informed of ESG-related issues when they arise. to help address material ESG risks. Contributions Audit & Inspection Rights: Transfer Restrictions: “When negotiating new investments, We are usually entitled to audit the Our royalty and streaming agreements we endeavour to negotiate such books and records of the operators may have restrictions that either (a) arrangements such that the operator, Employees on a periodic basis and may access require our consent for the operator and inspect the properties comprising to transfer the project, or (b) otherwise as appropriate, commits to implement the project. These rights provide us further insight into establish the circumstances in which such transfer is the RGMPs, and to provide us with Governance the operations and management by the operators. permissible. Such constraints are intended to ensure information from our operators as These provisions permit us to confirm compliance with we continue to be partnered with a quality operator the terms of the agreement, including with covenants over the life of the agreement and a responsible actor well as to mitigate risk, including to comply with international tailings standards, and when it comes to ESG-related issues. ESG-related risk.” About this with applicable laws, including environmental laws ESG Report and ESG-related industry standards. Appendices 11