Franco-Nevada DRIP -- summary under Discounted Dividend Plan

Description of Plan

Participants may purchase additional Common Shares by automatically reinvesting cash dividends from treasury or through open market purchases. If from treasury, they purchases can be at a discount determined by the Company of up to 5% (currently 3%) to the weighted average trading price for all trades of Common Shares on the Toronto Stock Exchange for the five board-lot trading immediately preceding the dividend payment date.

Canadian tax consequences

Including that: the issuance of Common Shares at the discount of up to 5% to the average market price will not give rise to a taxable benefit and that a participant should not realize taxable income when receiving a certificate for Common Shares credited to their account; and that receipt of cash in lieu of a fractional share could give rise to withholding tax.