Franco-Nevada Reports Major Growth with its 2010 Results and Increases Dividend by 60%

TORONTO, March 24 /CNW/ --
2010 Highlights (US dollars unless otherwise noted)

    --  Royalty Revenue((1)) of $205.4 million, a 44% increase
        year-over-year.
    --  Free Cash Flow((2) )of $184.8 million, a 49% increase
        year-over-year.
    --  Adjusted Net Income((3)) of $58.9 million (or $0.52 per share),
        a 84% increase year-over-year.
    --  Acquisition of Gold Wheaton completed in March 2011 adds to
        2011 growth outlook.
    --  Monthly dividend increases 60% to US$0.04 per share starting
        with July 2011 payment.

TORONTO, March 24 /CNW/ - Franco-Nevada Corporation (TSX: FNV) today
reported its financial results for the three and twelve months ended
December 31, 2010.  All figures are in US dollars unless otherwise
noted. The complete Financial Statements and Management's Discussion
and Analysis can be found today on Franco-Nevada's website at www.franco-nevada.com and by tomorrow on www.sedar.com.

Selected Quarterly and Annual Financial Information:

(Thousands of US dollars, except per share amounts)

                                  Q4       Q4       Fiscal     Fiscal
                                 2010     2009        2010        2009

Royalty Revenue((1))         $ 69,416 $ 44,291 $   205,416 $   142,804

Total Revenue((4))             76,173   80,443     233,326     199,728

Net Income                     20,952   39,650      74,244      80,879

Basic Earnings per Share     $   0.18 $   0.36 $      0.65 $      0.76

                                                                      

Free Cash Flow((2))          $ 62,924 $ 39,024 $   184,752 $   124,308

Free Cash Flow((2))per share     0.55     0.35        1.62        1.16

Adjusted Net Income((3))       24,809   22,828      58,917      31,984

Adjusted Net Income((3)) per
share                        $   0.22 $   0.20 $      0.52 $      0.30

                                                    As At December 31,

                                                      2010        2009

Working Capital                                $   572,681 $   530,700

Total Assets                                     2,233,628   2,020,891

Total Shareholders' Equity                     $ 2,102,100 $ 1,930,268

(1)  Royalty Revenue is defined by the Company as cash received or
     receivable from operating assets earned during the period.

(2)  Free Cash Flow is defined by the Company as operating income
     excluding any changes in fair value of derivative assets, plus
     depletion and depreciation, non-cash charges and any impairment of
     investments and mineral and oil & gas interests.

(3)  Adjusted Net Income is defined by the Company as net income
     excluding impairment charges related to royalties/streams, working
     interests and investments; fair value changes for assets accounted
     for as derivative assets; foreign currency gains; and the impact
     of taxes on all these items.

(4)  Includes changes in fair value of derivative assets

Portfolio Highlights

Goldstrike - Franco-Nevada benefited from increased production on key
royalty claims and higher gold prices that leveraged the Company's
profit-based royalties.  During the fourth quarter of 2010,
Franco-Nevada realized $9.6 million and $3.5 million in receipts from
the Goldstrike net profits interest ('NPI') and net smelter returns
('NSR') royalties, respectively. For fiscal 2010, the Company realized
$33.2 million and $16.0 million from the NPI and NSR royalties,
respectively. The timing of a waste stripping campaign and lower
production will have a temporary negative impact on these royalties in
2011.

Palmarejo - Franco-Nevada recorded $13.2 million and $44.6 million in
revenues for the three months and year ended December 2010,
respectively. The Company expects gold payments from Palmarejo to
exceed the minimum of 50,000 ounces in 2011.

Gold Quarry - Revenue of $16.4 million and $20.4 million for the three
and twelve months ended December 2010, respectively, reflected the
true-up to the minimum royalty provision in the fourth quarter. The
Company expects Revenue from Gold Quarry to be lower in 2011 as the
minimum payment obligation reverts to 11,200 ounces.

New Projects - The Company realized new revenues from a number of
projects including Duketon with Regis Resources Limited in Australia,
Hislop and Holt with St Andrews Goldfields Ltd. in Ontario and a number
of smaller projects in Australia.

Tasiast - In its year-end results, Kinross Gold Corporation announced a
revised 16-year scoping plan for Tasiast with annual production of 1.5
million ounces over the first full eight years of operation.
Franco-Nevada holds a 2% royalty on Tasiast. The royalty is expected to
begin generating revenue to Franco-Nevada in 2011 and ramp up in
parallel with the project expansion.

Detour - Detour Gold Corporation announced increased reserves at its
Detour Lake project of 14.9 million ounces and measured and indicated
resources have increased to 20.5 million ounces. Franco-Nevada holds a
2% royalty on the Detour project. The Company expects Detour to start
contributing to its revenue in 2013.

Gold Wheaton Acquisition

On March 14, 2011, the Company closed its previously announced
acquisition of Gold Wheaton. The transaction will provide the Company
with higher leverage to precious metal commodity prices with the
Sudbury Operations, Ezulwini and MWS precious metal streams.  As part
of the acquisition, Franco-Nevada issued 11.6 million common shares and
paid $259.5 million in cash to Gold Wheaton shareholders. In addition,
the Company purchased a controlling block of shares from Quadra FNX
Mining Ltd. for $295.5 million.

As at March 24, 2011, the Company had 126.3 million shares outstanding,
approximately $260 million in cash and $70 million in marketable
investments.

2011 Outlook

The Company will no longer be using the non-GAAP measure 'Royalty
Revenue'.  This term was introduced as a measure to better reflect
financial performance of the Company's assets as Revenue under Canadian
GAAP included certain non-cash fair value adjustments.  With the
adoption of International Financial Reporting Standards ('IFRS'), the
Company will employ historical cost accounting with respect to the
Palmarejo and Hislop assets which will remove any fair value
adjustments being included in Revenue under IFRS. 

The Company estimates Revenue for 2011 to be between $325 million and
$350 million using consensus commodity price assumptions of $1,400
gold, $1,750 platinum, $575 palladium and $80 oil. Included in the 2011
Revenue guidance is the gross stream revenue (before the payment of
$400 per ounce) for the stream agreements on Palmarejo, Sudbury
Operations, MWS and Ezulwini which are estimated to contribute 135,000
to 155,000 gold equivalent ounces to the Company. By comparison, 2010
Revenue would have been approximately $227 million had the Company
accounted for its Palmarejo stream agreement on a gross revenue basis.

2011 Revenue will be earned approximately 85%-90% from precious metal assets.

Financial Results Discussion

Revenues

Royalty Revenue((1)) was $69.4 million in the fourth quarter of 2010 compared with $44.3
million for the fourth quarter of 2009. Royalty Revenue((1)) for the year ended December 31, 2010 was $205.4 million compared with
$142.8 million for the year ended December 31, 2009. The improvement in
Royalty Revenue((1)) for the year was due to the contributions from the Company's Goldstrike
royalty, Palmarejo, an asset acquired in January 2009 which began
contributing to Royalty Revenue((1)) in July 2009, Holloway where commercial production was achieved late in
2009, Stillwater due to increased average platinum group metal prices
and Cerro San Pedro, having re-started production after a short
suspension of operations.

Royalty Revenue((1)) for the year was earned 81% from precious metal assets (74% gold and 7%
PGMs), 17% from oil and gas (14% oil and 3% gas) and 2% from other
mineral assets.  Geographically, 94% of Royalty Revenue((1)) in the year came from North America (49% US, 21% Canada and 24% Mexico)
and 4% from Australia.

Costs, Expenses, Taxes and Capital

Franco-Nevada's royalty portfolio requires relatively limited capital
and incurs only minor direct operating costs.  Costs of operations were
$8.0 million and $6.6 million for the year ended December 31, 2010 and
2009, respectively. The increase in costs was mainly due to higher oil
and gas production taxes and operating costs due to higher oil and gas
revenues in 2010 than 2009. In addition, net proceeds taxes in Nevada
and Montana were higher due to increased revenues earned from the
Goldstrike NPI royalty and Stillwater in 2010 compared with 2009.

General and administrative costs remained relatively flat at $10.4
million in 2010. Depletion and depreciation expense increased to $92.6
million for 2010 from $88.9 million in 2009 mainly due to higher
depletion on the Company's oil and gas assets, partially offset by
lower depletion on Goldstrike and Stillwater. During 2010, the Company
recorded $4.1 million in impairment charges on certain exploration
interests located in the US and Australia due to the expiry or
relinquishment of certain exploration licenses and/or ground.

Income tax expense increased to $33.9 million in 2010 compared to $17.8
million in 2009. The increase is attributable to higher income being
earned in the US and Mexico in 2010 compared to 2009.

Net Income

Net income for the fourth quarter of 2010 was $21.0 million, or $0.18
per share,  which included gains on the sale of investments of $1.2
million, foreign exchange losses of $6.8 million and fair value gains
of $6.7 million associated with royalty interests accounted for as
derivative instruments.  Adjusted Net Income((3)) for the fourth quarter was $24.8 million, or $0.22 per share, compared
with $22.8 million, or $0.20 per share, for the same period of the
prior year.

Net income for the year ended December 31, 2010 was $74.2 million which
included $25.6 million in gains on sale of investments, $28.0 million
in foreign exchange losses and $27.7 million in fair value gains
associated with royalty interests accounted for as derivative
instruments.   Adjusted Net Income((3) )for the year ended December 31, 2010 was $58.9 million, or $0.52 per
share, compared with $32.0 million, or $0.30 per share, for the year
ended December 31, 2009.

The Company measures its business and performance using the non-GAAP
measures of Royalty Revenue((1)) and Free Cash Flow((2)). Free Cash Flow((2)) was $62.9 million ($0.55 per share) for the fourth quarter of 2010,
representing a margin of 91% of Royalty Revenue((1)).  Free Cash Flow((2)) was $184.8 million ($1.62 per share) for the full 2010 year which
represented a margin of 90% of Royalty Revenue((1)).  Our definitions of these non-GAAP financial measures and the
reconciliations to GAAP measures can be found in the Company's Annual
Management's Discussion and Analysis and at the end of this press
release.

Balance Sheet and Capital Structure

At December 31, 2010, Franco-Nevada had a very strong financial position
with no debt or hedges, working capital of $572.7 million, and
marketable securities valued at $39.5 million. In addition, the Company
has an undrawn $175 million revolving term credit facility available.
The marketable securities are held in highly liquid investments.  The
acquisition of Gold Wheaton was closed on March 14, 2011. As at March
24, 2011, the Company had 126.3 million shares outstanding and
approximately $260 million in cash.

Dividend Declaration With Change in Dividend

Today, the Board of Directors of Franco-Nevada declared the monthly
dividend of C$0.025 per share for each of April, May and June 2011. 
The Board increased the dividend rate starting in July 2011 and changed
the declaration currency of the dividend to US dollars from Canadian
dollars.  The monthly dividend was increased to US$0.04 per share
starting in July 2011.   The April 2011 dividend will be paid on April
28, 2011 to shareholders of record on April 14, 2011, the May 2011
dividend will be paid on May 26, 2011 to shareholders of record on May
12, 2011, the June 2011 dividend will be paid on June 30, 2011 to
shareholder of record on June 16, 2011 and the July 2011 will be paid
on July 28, 2011 to shareholders of record on July 14, 2011.

Shareholder Information

The complete Financial Statements and Management's Discussion and
Analysis can be found today on Franco-Nevada's website at www.franco-nevada.com and by tomorrow on www.sedar.com. Management will host a conference call on March 25, 2011 at 10:00 am
Eastern Time to review the results. Interested investors are invited to
participate as follows:

    --  Conference Call: Local: 647-427-7450; Toll-Free:
        1-888-231-8191; Title: Franco-Nevada Fiscal 2010 Results.
    --  Conference Call Replay: A recording will be available until
        April 1, 2011 at the following numbers:
  o Local: 416-849-0833; Toll-Free: 1-800-642-1687; Pass code:
    39110446.
    --  Webcast: A live audio webcast will be accessible at
        www.franco-nevada.com.
    --  Slides: A presentation to accompany the conference call will be
        available on the Company's website prior to the call.

Corporate Summary

Franco-Nevada Corporation (TSX: FNV) is a gold-focused royalty and
stream company with additional interests in platinum group metals, oil
and gas and other assets. Its portfolio of high-margin cash flow
producing assets is located principally in North America. The Company
also holds interests in a growing pipeline of development assets and
has exposure to some of the largest gold discoveries in the world.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION


Certain information contained in this press release, including any
information as to future financial or operating performance and other
statements that express management's expectations or estimates of
future performance, constitute 'forward-looking statements'. All
statements, other than statements of historical fact, are
forward-looking statements. The words 'will', 'estimates', 'estimated',
'expect', 'expects', 'expected', and similar expressions identify
forward-looking statements. Forward-looking statements are necessarily
based upon a number of estimates and assumptions that, while considered
reasonable by management, are inherently subject to significant
business, economic and competitive uncertainties and contingencies. The
Company cautions the reader that such forward-looking statements
involve known and unknown risks, uncertainties and other factors that
may cause actual financial results, performance or achievements of
Franco-Nevada to be materially different from the Company's estimated
future results, performance or achievements expressed or implied by
those forward-looking statements and the forward-looking statements are
not guarantees of future performance. These risks, uncertainties and
other factors include, but are not limited to: fluctuations in the
prices of the primary commodities that drive the Company's royalty
revenue (gold, platinum group metals, copper, nickel, uranium, oil and
gas); fluctuations in the value of the Canadian and Australian dollar,
Mexican peso, and any other currency in which the Company generates
revenue, relative to the US dollar; changes in national and local
government legislation, including taxation policies; regulations and
political or economic developments in any of the countries where the
Company holds interests in mineral and oil and gas properties; rate and
timing of production differences from estimates; influence of
macroeconomic developments; business opportunities that become
available to, or are pursued by us; reduced access to debt and equity
capital; litigation; title disputes related to our interests or any of
the properties; development, permitting, operating, infrastructure or
technical difficulties on any of the properties; risks and hazards
associated with the business of development and mining on any of the
properties, including, but not limited to unusual or unexpected
geological formations, cave-ins, flooding and other natural disasters
or civil unrest; and 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 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 such underlying properties, no material adverse
change in the market price of the commodities, and any other factors
that cause actions, events or results to differ from those anticipated,
estimated or intended. Accordingly, readers should not place undue
reliance on forward-looking statements because of the inherent
uncertainty. For additional information with respect to risks,
uncertainties and assumptions, please also refer to the 'Risk Factors'
section of our most recent Annual Information Form filed with the
Canadian securities regulatory authorities on www.sedar.com, as well as our annual MD&A. 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.

Non-GAAP Measures

Royalty Revenue, Free Cash-Flow, Margin and Adjusted Net Income are
intended to provide additional information only and do not have any
standardized meaning prescribed by generally accepted accounting
policies ('GAAP') and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
Canadian GAAP.  These measures are not necessarily indicative of
operating profit or cash flow from operations as determined under
Canadian GAAP.  Other companies may calculate these measures
differently. For a reconciliation of these measures to various Canadian
GAAP measures, please see the end of this press release or the
Company's current MD&A disclosure found on the Company's website and on
SEDAR.

(Expressed in thousands except per share
amounts)                                                              

                    Three Months Ended                 Year Ended

                 December
                     31,    December 31,   December 31,   December 31,
                     2010           2009           2010           2009

Royalty
Revenue                                                               

  Total
  Revenue      $   76,173 $       80,443 $      233,326 $      199,728

  Change in
  fair value -
  Palmarejo       (6,273)       (35,073)       (26,786)       (54,589)

  Change in
  fair value -
  Other             (459)          (988)          (909)        (1,570)

  Dividends          (25)           (91)          (215)          (765)

Royalty
Revenue        $   69,416 $       44,291 $      205,416 $      142,804

                                                                      

Free Cash Flow                                                        

  Operating
  income       $   35,241 $       51,716 $      108,682 $       87,133

  Depletion
  and
  depreciation     27,232         22,229         92,612         88,945

  Stock-based
  compensation      1,578          1,140          5,548          4,150

  Write-down
  on
  investments       1,481              -          1,481            239

  Write-down
  on mineral
  interests         4,124              -          4,124              -

  Change in
  fair value -
  Derivative
  assets          (6,732)       (36,061)       (27,695)       (56,159)

Free Cash Flow $   62,924 $       39,024 $      184,752 $      124,308

Margin (Free
Cash Flow as a
% of Royalty
Revenue)              91%            88%            90%            87%

Basic Weighted
Average Shares
Outstanding       114,492        112,117        113,986        106,683

Free Cash Flow
per share      $     0.55 $         0.35 $         1.62 $         1.16

                                                                      

Adjusted Net
Income                                                                

  Net income   $   20,952 $       39,650 $       74,244 $       80,879

  Foreign
  exchange
  loss (gain),
  net of
  income tax        5,470          9,125         21,861        (6,583)

  Write-down
  on
  investments       1,271              -          1,271            206

  Write-down
  on mineral
  interests,
  net of
  income tax        2,895              -          2,895              -

  Gain on sale
  of
  investments,
  net of
  income tax      (1,059)              -       (21,953)          (380)

  Other
  income, net
  of income
  tax                   -              -              -        (1,708)

  Gain in fair
  value of
  assets
  accounted
  for as
  derivative
  assets, net
  of income
  tax             (4,720)       (25,947)       (19,401)       (40,430)

Adjusted Net
Income         $   24,809 $       22,828 $       58,917 $       31,984

Adjusted Net
Income per
share          $     0.22 $         0.20           0.52 $         0.30

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