Franco-Nevada Provides Additional Update on Cobre Panama
NEWS RELEASE
Toronto, February 6, 2023
Franco-Nevada Provides Additional Update on Cobre Panama
Franco-Nevada Corporation (“Franco-Nevada”) (TSX:FNV) (NYSE:FNV) has been advised by its partner First Quantum Minerals
Ltd. (“First Quantum”) of the following updates in respect of the Cobre Panama mine:
• On January 26, 2023, the Panama Maritime Authority (the “AMP”) issued a resolution requiring the suspension of the
concentrate loading operations at the Cobre Panama Port, Punta Rincón, until certification of the calibration of the
scales by an accredited company had been initiated. First Quantum’s subsidiary, Minera Panama, S.A. (“MPSA”), the
operator of Cobre Panama, submitted proof of the initiation of the certification process by an accredited company on
February 3, 2023. Loading operations have been suspended while MPSA waits for a response from the AMP. If
concentrate is not shipped by mid-February, it may be necessary for MPSA to suspend operations at Cobre Panama
due to limited storage capacity on site.
• In two third-party proceedings before the Supreme Court of Panama, the Procurador de la Administración of the
Government of Panama (the “Administration’s Attorney”) filed motions on January 11, 2023, requesting that the
Supreme Court declare that the extension of MPSA’s concession contract to 2037 be deemed without legal effect.
The motions are contradictory to opinions previously issued by the Administration’s Attorney in the same third-party
proceedings and the Supreme Court has not yet ruled on the matter.
Please refer to First Quantum’s press release dated February 6, 2023 for more detailed information.
For more information, please go to our website at www.franco-nevada.com or contact:
Paul Brink Sandip Rana
President & Chief Executive Officer Chief Financial Officer
416-306-6305 416-306-6303
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Forward -Looking Statements
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 of 1995, respectively, which may include, bu t 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, performance guidance, carrying value of assets, future divid ends and 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, the performance and plans of third party operators, audits being conducted by the CRA, the
expected exposure for current and future assessments and available remedies, the outcome of any discussions between the Government of
Panama and the operator of the Cobre Panama project and the remedies relating to and consequence of any actions taken by the Government of
Panama or the operator of the Cobre Panam a project. In addition, statements relating to reserves and resources, gold equivalent ounces (“GEOs”)
and mine life are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance
can be given that the estimates and assumptions are accurate and that such reserves and resources, GEOs or mine life will be realized. 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”, “budgets”, “potential for”,
“scheduled”, “estimates”, “forecasts”, “predicts”, “projects”, “intends”, “targets”, “aims”, “anticipates” or “believes” or v ariations (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 an d stream
revenue (gold, platinum group metals, copper, nickel, uranium, silver, iron ore and oil and 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 U.S. dollar; changes i n national and local
government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; the adoption of a global
minimum tax on corporations; regulatory, 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 Fra nco-Nevada
holds a royalty, stream or other interest, including changes in the ownership and control of such operators; relinquishm ent or sale of mineral
properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franc o-Nevada; reduced
access to debt and equity capital; litigation; title, permit or license disputes related t o 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 “passive foreign investment compa ny” (“PFIC”) status as
defined in Section 1297 of the United States Int ernal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore
streams; 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; access to sufficient pipeline capacity; actual mineral content may differ f rom the
reserves and resources contained in technical reports; rate and timing of production differences from resource estimates, other technical reports
and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Fr anco-Nevada holds a
royalty, stream or other interest, including, but not limited to unusual or unexpect ed geological and metallurgical conditions, slope failures or cave -
ins, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of the CO VID-19 (coronavirus)
pandemic; and the integration of acquired a ssets. 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 publi c
statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the m arket price of the
commodities that underlie the asset portfolio; the Company’s ongoing income and assets relating to determination of its PFIC status; no material
changes to existing tax treatment; the expected application of tax laws and regulations by taxat ion authorities; the expected assessment and
outcome of any audit by any taxation authority; no adverse development in respect of any significant property in which Franco -Nevada holds a
royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in
production; 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 intend ed. 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. Investors are cautioned that forward -looking statements are not
guarantees of future performance. In addition, there can be no assurance as to the outcome of the ongoing audit by the CRA or the Company’s
exposure as a result thereof. Franco -Nevada cannot assure investors that actual results will be consistent with these forward-looking statements.
Accordingly, investors 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 Franco -Nevada’s most recent Annual Information
Form filed with the Canadian securities regulatory authorities on www.sedar.com and Franco -Nevada’s most recent Annual Report filed on Form 40 -
F filed with the SEC on 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 r esults or otherwise,
except as required by applicable law .