Franco-Nevada Announces A$200 Million Follow-on Financing Package

Franco-Nevada Corporation ("Franco-Nevada" or the "Company") (TSX: FNV) (NYSE: FNV) is pleased to announce that, through a wholly-owned Australian subsidiary, it has entered into an agreement to acquire a A$170 million (approximately $122 million) gross royalty (the "Royalty") from Minerals 260 Limited ("Minerals 260") to further support its development of the Bullabulling Gold Project ("Bullabulling" or the "Project"). Additionally, Franco-Nevada has agreed to subscribe for A$30 million (approximately $22 million) of Minerals 260's ordinary shares (the "Shares") as a lead order in a future equity raise.

The Royalty acquisition will be in addition to Franco-Nevada's Australian subsidiary's existing 2.45% gross royalty interest over the Project, increasing its interest to a 3.90% gross royalty over Bullabulling, plus an expanded area of interest and enhanced Royalty profile. The investment in Minerals 260 Shares will build upon Franco-Nevada's existing ownership of Minerals 260 Shares.

This financing package increases Franco-Nevada's support for Minerals 260 to develop Bullabulling to an aggregate A$420 million (approximately $300 million) and follows the A$220 million (approximately $155 million) financing package that Franco-Nevada provided Minerals 260 in February 2026 which has supported considerable resource growth and development progress at Bullabulling and significant appreciation of Minerals 260's Share price since this time.

Paul Brink, President & CEO of Franco-Nevada said: "Both the team at Minerals 260 and the Bullabulling orebody continue to surpass our expectations. Minerals 260 is ahead of schedule on project development and financing and has rapidly grown its resource endowment. We are delighted to take this next step in building our partnership with the company and firmly believe that our financial backing can play a lynchpin role in generating value for Minerals 260 shareholders."

Luke McFadyen, Managing Director of Minerals 260, commented: "We are thrilled with the partnership we have established with Franco-Nevada and Franco-Nevada's decision to invest an additional A$200 million supports what both parties believe Bullabulling will become - a near-term, large scale, long-life, expandable gold asset in one of the world's best mining jurisdictions. This is a partnership built on focus and determination to bring Bullabulling into production and supports mutually beneficial outcomes for each company. This additional funding materially strengthens our balance sheet and our path to final investment decision in early 2027."

Transaction Highlights

• Near-Term Production Pathway: Bullabulling is one of Australia's largest near-term gold projects, located approximately 65 km from Kalgoorlie, Western Australia in the Eastern Goldfields, with a recently upgraded Resource in July 2026 of 4.4 Moz Indicated Resources (140 Mt at 0.98 g/t) and 1.7 Moz Inferred Resources (51 Mt at 1.0 g/t). The Project is located on existing mining leases and has a straightforward pathway to meaningful near-term production from conventional open-pit and CIL processing. A pre-feasibility study was completed by Minerals 260 in July 2026, with a definitive feasibility study and final investment decision expected in early 2027, and first gold production potentially as soon as H2 2028.
  
• Meaningful Production Profile: Minerals 260's intended strategy is to incrementally develop and expand Bullabulling to accelerate and optimize production. The pre-feasibility study was based on the maiden reserve (reflecting resources as of December 2025) and Stage 1 throughput of 5 Mtpa, with additional capacity and design provisions incorporated to support future throughput expansion to 7.5 Mtpa. The pre-feasibility study confirmed Franco-Nevada's assessment that Bullabulling will be a scaled, long life mine, with planned annual average gold production of approximately 150 koz per annum for the first 10 years and total mine life of 19 years. Based on Franco-Nevada's review and current Resources, we see strong potential for throughput expanding in phases to 7 to 8 Mtpa, which corresponds with historical studies and Minerals 260's indicative development plan indicating Stage 2 production of 200 koz per annum.¹
  
• Substantial Funding for Project Development: Royalty financing proceeds, together with additional proceeds from a future Minerals 260's equity raise, are expected to fully fund the equity component required to bring Bullabulling into production and will enable Minerals 260 to maintain the project development momentum at Bullabulling through to a definitive feasibility study and a final investment decision expected in early 2027.
  
• Large Mineral Resource with Exploration Potential: The Royalty covers a large Resource base, including the Phoenix, Bacchus, Dicksons, and Kraken deposits, which cover 8.5 km strike-length on the Bullabulling trend and the Gibraltar deposit which currently spans 1 km strike-length on a sub-parallel trend. Since acquiring the Project in 2025, Minerals 260 has had success growing the Resource through the first significant drilling campaign on the Project since 2011, nearly tripling Mineral Resources. Considerable growth potential continues to exist on the deposits both along strike and at depth, along with conversion of Inferred Resources. We expect the financing proceeds will assist Minerals 260 to continue expanding their Resource base through both exploration and infill drilling on ground covered by the Royalty, along with bringing the Project into production.
  
• Expanded Area of Interest and Enhanced Royalty Profile: The area of interest for the Royalty surrounding the boundary of the existing Royalty tenure will expand from 2.5 km to 10 km, resulting in the Royalty capturing additional mineral trend extensions and covering a total area of approximately 650 km². In addition, the Royalty step down production threshold, based upon gold produced from Royalty lands, will increase from 4 Moz to 6 Moz of gold, providing enhanced duration and optionality for the Royalty as resources and production from Bullabulling grow.
  
• Continued Partnership with Experienced Board & Management Team: Minerals 260 is led by its Chairman Tim Goyder, who has over 40 years of experience in the resource industry and is Minerals 260's second largest shareholder. Mr. Goyder is also the Chairman of Liontown Limited which recently developed and is operating the Kathleen Valley Lithium mine in Western Australia. The Minerals 260 management team is led by its Chief Executive Officer and Managing Director, Luke McFadyen who has over 15 years of mining industry experience and, prior to joining Minerals 260 in 2023, held senior roles at OZ Minerals, Syrah Resources, South32 and BHP.

Key Terms

Royalty Acquisition

• Upfront proceeds of A$170 million (approximately $122 million) for an additional 1.45% gross royalty over the Royalty area so that Franco-Nevada's Australian subsidiary will hold an effective 3.90% gross royalty over Bullabulling, with payment upon closing
  
• Upon production of 6 Moz of gold from Royalty lands, the Royalty will step down from 3.90% to 2.75%
  
• The area of interest for the Royalty will be 10 km from the boundary of historical Royalty tenure
  
• Franco-Nevada's Australian subsidiary will maintain a right of first refusal on future streams, royalties and similar interests related to the Royalty properties

Equity Participation

• Franco-Nevada has committed to provide an incremental cornerstone investment of A$30 million (approximately $22 million), as a lead order in a future equity financing

Financing the Transactions

Franco-Nevada intends to finance the transactions from cash on hand. The Company had $1.0B in cash and $4.3B in available capital as at June 30, 2026.

Franco-Nevada Corporate Summary

Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and 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. Franco-Nevada is the gold investment that works.

You May Also Be Interested In

• GS now sees "clearer catalyst path" for Meta shares post settlement & Muse launch
• MySize shifts strategy toward defense tech acquisitions
• Vox Royalty closes three Australian gold and copper royalty deals