<<
    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES./

    This press release contains forward-looking statements. Reference should
    be made to "Forward-looking Statements" at the end of this press release.
    Currency references are in US dollars.
    >>

TORONTO, Dec. 23 /CNW/ - Franco-Nevada Corporation (TSX:FNV) has entered into agreements with private individuals to acquire an effective 7.29% net smelter returns ("NSR") royalty interest on the Gold Quarry Royalty Property ("the Gold Quarry Royalty") for a total consideration of $103.5 million in cash. Franco-Nevada has over $500 million in cash and other facilities to fund new investments. The purchase and sale agreements are subject to certain conditions with closing expected prior to December 31, 2008.

The Gold Quarry Royalty Property is an approximately 522 acre parcel of land in the Carlin District of north-central Nevada that covers a portion of the current Gold Quarry open pit mining operation of Newmont USA Limited, a wholly-owned subsidiary of Newmont Mining Corporation. Since 1984, over eight million ounces of gold are estimated to have been produced from the Royalty Property and the royalty interests being acquired are estimated to have realized approximately $250 million in royalty payments.

Franco-Nevada's share of the Gold Quarry Royalty is currently paid on the greater of a 7.29% NSR based on production or a minimum annual royalty payment obligation tied to reserves and stockpiles. Based on historic reported payment data, Franco-Nevada expects to continue to receive on average greater than 11,200 gold royalty ounces per annum. The production based royalty can be taken in cash or in-kind. The Gold Quarry Royalty is reserved from an undivided interest in privately owned mineral land, not mining claims on government owned land. As such, the Gold Quarry Royalty is expected to be substantially insulated from the risk of new public land royalties and regulations.

The Gold Quarry operation is part of Newmont's Carlin Trend Complex located 40 miles west of Elko, Nevada. Newmont's Nevada properties operate as an integrated unit with different mine ore types and grades being transported within the Complex to utilize a variety of processing facilities. Newmont currently reports reserves and production numbers by area and does not publicly quote separate Gold Quarry numbers. Newmont reports that the Carlin Open Pit portion of the Nevada reserve base, which includes Gold Quarry, was 9.5 million ounces at the end of 2007.

The Gold Quarry Royalty is expected to compliment Franco-Nevada's other gold royalties in Nevada and become a core addition to Franco-Nevada's portfolio of over 285 royalty interests. The transaction is expected to be accretive to Franco-Nevada on most financial measures. In its most recent quarter ended September 30th, Franco-Nevada generated approximately $40 million in royalty revenues. Of this, gold royalty revenues were approximately $20 million making Franco-Nevada the leading gold royalty company by gold revenues, gold EBITDA and number of gold royalty interests. Franco-Nevada is optimistic on gold's longer term potential and the agreement to acquire the Gold Quarry Royalty is a first step in the company's near term strategy to further increase Franco-Nevada's exposure to gold.

Management will host a conference call on Tuesday, December 23, 2008 at 2:00pm ET to review the transaction. A presentation to accompany the conference call will be made available on the Company's website at www.franco-nevada.com prior to the call. Analysts and interested investors are invited to participate as follows:

    <<
    -   Conference Call: Local: 416-644-3419; Toll-Free: 800-733-7560;
        Conference call title: Franco-Nevada Royalty Acquisition

    -   Conference Call Replay: A recording of the conference call will be
        available until December 31, 2008 at the following numbers: Local:
        416-640-1917; Toll-Free: 877-289-8525; Pass code: 21293385 followed
        by the number sign

    -   Webcast: A live webcast of the conference call will be accessible on
        Franco-Nevada's website at www.franco-nevada.com.
    >>

Corporate Summary

Franco-Nevada Corporation (TSX: FNV) is a gold focused resource royalty and investment company. The Corporation owns a diversified portfolio of gold, platinum group metals, oil & gas royalties and other interests. The majority of revenues are generated from royalty properties in the United States, Canada and Australia.