Gresham "Group 150" - June 2011

JUNE 2011

1

ASX RESOURCES - GROUP 150We are pleased to present the June edition of ‘Group 150’, a ranking of the top 150 ASX listed resources companies (excluding oil and gas), by market capitalisation. May was a scrappy month for equities as renewed concerns around European debt and the Federal Reserve’s lack of solutions for the structural deficit received global attention. A majority of commodity prices fell during the month, with the exception of gold. The cumulative market value of Group 150 decreased 1.8% from $591.5 billion to 580.7 billion at the end of May. Like April, two-thirds of the Group 150 recorded a fall in market value. For the first time in a while, the entry point into the Group 150 fell to $122.6 million, down from $130.6 million for the previous month. The ASX/S&P 200 Resources Index decreased 1.5% for the month, while both the ASX All Ordinaries and ASX/S&P 200 Index decreased 2.2% and 2.4% respectively. May recorded a steady month in M&A with only a handful of transactions announced, with the largest being the offer for South African gold miner, Gold One. Papillon lead the “Winners” for May (in terms of growth in market capitalisation), entering the Group 150 in position 147, after recording a 94.2% increase in value. Others included: Indo Mines (+71.8%), Minemakers (+50.4%), Iluka (+25.0% - adding a further $1.3b to the market cap), and Catalpa (+23.8%) after the approach from St Barbara. This month includes an article on the virtual mining company - “Generating Returns while Protecting the Downside - The Franco Nevada Story”Founded in 1982, Franco-Nevada had grown to a US$3 billion company by the time it was acquired by Newmont in 2002. The concept was to build a company from the cash flow stream of gold royalties which provide yield and more upside than a gold Exchange Traded Fund “ETF” but with less risk than a mine operator - a virtual mining company with no operating risk or capital expenditure commitments.In late 2007, a team including some Old Franco employees formed Franco-Nevada Corporation and on 20 December 2007, acquired a portfolio of Newmont royalties and other interests, completed a US$1.2 billion initial public offering, completed a bank debt facility and listed on the Toronto Stock Exchange. The current portfolio includes over 340 assets covering properties at various stages from operations to early stage exploration. Royalties are mostly revenue-based but the portfolio also includes profit-based and stream-based royalties.

Gresham Advisory Partners Limited

Gresham Group 150

June 2011

Edition 15

Darren MartinGresham Advisory [email protected]+61 8 9486 7077+61 412 144 719

Gresham Advisory Partners is a leading Australian mergers and acquisitions/corporate advisory business and one of Australia’s largest and highest ranking independent corporate advisors.

Top 150 asX LisTed resource companies - may By Market Capitalisation

Group 150

2

Mkt Cap (A$m) % Mkt Cap (A$m) %

May Apr Company 31-May-11 30-Apr-11 Change May Apr Company 31-May-11 30-Apr-11 Change

1 1 BHP Billiton Ltd. (ASX:BHP) $243,791.5 $252,878.2 (3.6%) 51 50 Allied Gold Ltd. (ASX:ALD) $598.2 $647.2 (7.6%)

2 2 Rio Tinto Ltd. (ASX:RIO) $157,819.0 $159,889.3 (1.3%) 52 58 Discovery Metals Ltd. (ASX:DML) $570.4 $555.1 2.8%

3 3 Newcrest Mining Ltd. (ASX:NCM) $30,386.7 $31,726.1 (4.2%) 53 56 Metminco Limited. (ASX:MNC) $561.0 $575.8 (2.6%)

4 4 Fortescue Metals Group Ltd. (ASX:FMG) $20,300.0 $19,145.4 6.0% 54 51 Alkane Resources Limited (ASX:ALK) $556.9 $602.6 (7.6%)

5 5 Coal & Allied Industries Ltd. (ASX:CNA) $9,645.5 $9,662.0 (0.2%) 55 57 Aditya Birla Minerals Limited (ASX:ABY) $556.2 $564.1 (1.4%)

6 6 Equinox Minerals Ltd. (ASX:EQN) $6,754.5 $6,824.9 (1.0%) 56 67 Guildford Coal Limited (ASX:GUF) $545.9 $467.3 16.8%

7 8 Iluka Resources Ltd. (ASX:ILU) $6,498.1 $5,197.7 25.0% 57 52 Bougainville Copper Ltd. (ASX:BOC) $545.4 $601.6 (9.3%)

8 7 Alumina Ltd. (ASX:AWC) $5,636.8 $5,514.8 2.2% 58 55 Gujarat NRE Coking Coal Limited (ASX:GNM) $545.0 $579.7 (6.0%)

9 9 OZ Minerals Limited (ASX:OZL) $4,576.1 $4,663.5 (1.9%) 59 61 CuDeco Ltd. (ASX:CDU) $543.3 $520.5 4.4%

10 10 New Hope Corp. Ltd. (ASX:NHC) $4,400.2 $4,068.1 8.2% 60 50 Summit Resources Ltd. (ASX:SMM) $534.1 $549.3 (2.8%)

11 11 Riversdale Mining Ltd. (ASX:RIV) $4,047.8 $4,033.1 0.4% 61 62 Sphere Minerals Limited (ASX:SPH) $531.2 $513.4 3.5%

12 12 Lynas Corporation Limited (ASX:LYC) $4,035.1 $3,533.8 14.2% 62 60 Resolute Mining Ltd. (ASX:RSG) $526.1 $547.1 (3.8%)

13 13 MacArthur Coal Ltd. (ASX:MCC) $3,594.9 $3,504.3 2.6% 63 63 Beadell Resources Ltd (ASX:BDR) $525.9 $513.3 2.5%

14 14 Aquila Resources Ltd. (ASX:AQA) $3,331.9 $3,399.3 (2.0%) 64 66 Gryphon Minerals Ltd. (ASX:GRY) $512.9 $472.2 8.6%

15 16 Atlas Iron Limited (ASX:AGO) $3,050.7 $2,883.4 5.8% 65 53 OM Holdings Limited (ASX:OMH) $474.5 $595.0 (20.3%)

16 15 Whitehaven Coal Limited (ASX:WHC) $2,829.5 $3,170.2 (10.7%) 66 64 Cockatoo Coal Limited (ASX:COK) $472.5 $503.0 (6.1%)

17 18 Aquarius Platinum Ltd. (ASX:AQP) $2,453.8 $2,317.5 5.9% 67 70 Ampella Mining Limited (ASX:AMX) $466.9 $437.1 6.8%

18 17 Paladin Energy, Ltd. (ASX:PDN) $2,448.2 $2,566.4 (4.6%) 68 77 Rex Minerals Limited. (ASX:RXM) $428.4 $404.3 6.0%

19 19 PanAust Limited (ASX:PNA) $2,403.7 $2,283.1 5.3% 69 68 Murchison Metals Limited (ASX:MMX) $427.2 $457.7 (6.7%)

20 21 Aston Resources Limited (ASX:AZT) $2,028.9 $1,943.0 4.4% 70 72 Panoramic Resources Ltd. (ASX:PAN) $418.2 $426.5 (1.9%)

21 20 Mount Gibson Iron Ltd. (ASX:MGX) $2,008.2 $2,035.2 (1.3%) 71 73 Kagara Ltd (ASX:KZL) $418.1 $418.1 0.0%

22 22 Extract Resources Ltd. (ASX:EXT) $1,975.5 $1,675.7 17.9% 72 71 Arafura Resources Limited (ASX:ARU) $417.7 $430.5 (3.0%)

23 23 Medusa Mining Limited (ASX:MML) $1,639.5 $1,511.5 8.5% 73 86 Gold One International Limited (ASX:GDO) $411.9 $339.1 21.5%

24 24 Gloucester Coal Ltd. (ASX:GCL) $1,476.1 $1,452.2 1.6% 74 65 Aspire Mining Limited (ASX:AKM) $410.4 $482.4 (14.9%)

25 25 Ivanhoe Australia Limited (ASX:IVA) $1,376.5 $1,344.1 2.4% 75 80 Ramelius Resources Ltd. (ASX:RMS) $404.2 $389.6 3.7%

26 27 Zimplats Holdings Ltd. (ASX:ZIM) $1,345.5 $1,291.7 4.2% 76 83 Moly Mines Ltd. (ASX:MOL) $402.2 $367.7 9.4%

27 26 Independence Group NL (ASX:IGO) $1,234.9 $1,333.7 (7.4%) 77 75 Kingsrose Mining Limited (ASX:KRM) $400.2 $414.2 (3.4%)

28 28 Perseus Mining Ltd. (ASX:PRU) $1,160.3 $1,242.4 (6.6%) 78 78 Integra Mining Ltd. (ASX:IGR) $399.7 $399.7 0.0%

29 29 Western Areas NL (ASX:WSA) $1,146.7 $1,206.0 (4.9%) 79 76 Mineral Deposits Ltd. (ASX:MDL) $398.0 $407.1 (2.2%)

30 30 Sundance Resources Ltd. (ASX:SDL) $1,133.9 $1,089.0 4.1% 80 81 Hunnu Coal Limited (ASX:HUN) $363.1 $374.0 (2.9%)

31 32 Kingsgate Consolidated Limited (ASX:KCN) $1,060.6 $1,049.3 1.1% 81 79 Metals X Limited (ASX:MLX) $348.2 $396.0 (12.1%)

32 31 Sandfire Resources (ASX:SFR) $1,053.5 $1,061.0 (0.7%) 82 88 Perilya Ltd. (ASX:PEM) $344.1 $325.7 5.6%

33 34 Regis Resources Limited (ASX:RRL) $1,017.7 $1,034.9 (1.7%) 83 85 Elemental Minerals Limited (ASX:ELM) $336.7 $343.3 (1.9%)

34 35 Mirabela Nickel Ltd. (ASX:MBN) $1,007.7 $968.4 4.1% 84 84 Saracen Mineral Holdings Limited (ASX:SAR) $334.6 $344.4 (2.8%)

35 36 Intrepid Mines Limited (ASX:IAU) $989.2 $950.1 4.1% 85 82 Silver Lake Resources Limited (ASX:SLR) $322.9 $373.9 (13.6%)

36 40 Mantra Resources Limited $947.3 $912.1 3.9% 86 74 Tiger Resources Ltd. (ASX:TGS) $321.1 $414.6 (22.6%)

37 33 Energy Resources of Australia Ltd. (ASX:ERA) $944.2 $1,039.5 (9.2%) 87 103 Catalpa Resources Limited (ASX:CAH) $319.6 $258.1 23.8%

38 37 Gindalbie Metals Ltd. (ASX:GBG) $898.2 $940.3 (4.5%) 88 91 Troy Resources NL (ASX:TRY) $318.4 $315.8 0.8%

39 38 Bandanna Energy Limited (ASX:BND) $895.7 $938.3 (4.5%) 89 90 Marengo Mining Limited (ASX:MGO) $303.5 $318.4 (4.7%)

40 41 Minara Resources Ltd. (ASX:MRE) $865.4 $900.5 (3.9%) 90 96 South Boulder Mines Ltd. (ASX:STB) $297.1 $285.9 3.9%

41 39 CGA Mining Limited (ASX:CGX) $863.2 $936.5 (7.8%) 91 92 Adamus Resources Ltd. (ASX:ADU) $295.2 $306.5 (3.7%)

42 43 Coalspur Mines Limited (ASX:CPL) $856.9 $863.1 (0.7%) 92 100 Galaxy Resources (ASX:GXY) $284.5 $264.9 7.4%

43 48 Bathurst Resources Ltd (ASX:BTU) $846.0 $718.1 17.8% 93 95 Cape Lambert Resources Limited (ASX:CFE) $283.1 $285.9 (1.0%)

44 42 Jupiter Mines Ltd. (ASX:JMS) $842.6 $873.8 (3.6%) 94 99 BC Iron Limited (ASX:BCI) $281.3 $268.0 5.0%

45 49 OceanaGold Corporation (ASX:OGC) $687.9 $700.0 (1.7%) 95 89 Conquest Mining Limited (ASX:CQT) $271.2 $323.7 (16.2%)

46 45 Grange Resources Limited (ASX:GRR) $680.4 $755.1 (9.9%) 96 102 Nucoal Resources NL (ASX:NCR) $268.5 $258.8 3.7%

47 47 ST Barbara Ltd. (ASX:SBM) $636.6 $722.9 (11.9%) 97 87 Indophil Resources NL (ASX:IRN) $266.4 $330.0 (19.3%)

48 54 Northern Iron Limited (ASX:NFE) $616.7 $591.5 4.3% 98 93 Flinders Mines Limited. (ASX:FMS) $264.0 $291.3 (9.4%)

49 44 White Energy Company Limited (ASX:WEC) $614.8 $850.3 (27.7%) 99 98 Carabella Resources Limited (ASX:CLR) $260.2 $270.1 (3.7%)

50 46 Brockman Resources Limited (ASX:BRM) $608.2 $739.9 (17.8%) 100 115 Iron Ore Holdings Limited (ASX:IOH) $245.8 $223.5 10.0%

Includes ASX Resource companies excluding oil and gas

JUNE 2011

3

new enTranTs - may eXiTs - may123 Sylvania Platinum Ltd. (ASX:SLP) (previously Sylvania Resources)140 Indo Mines Limited (ASX:IDO)147 Papillon Resources Limited (ASX:PIR)149 Northern Star Resources Ltd. (ASX:NST)150 Minemakers Limited (ASX:MAK)

Based on market capitalisation as at 31 May vs 30 April

Mkt Cap (A$m) % Mkt Cap (A$m) %

May Apr Company 31-May-11 30-Apr-11 Change May Apr Company 31-May-11 30-Apr-11 Change

101 97 Focus Minerals Limited (ASX:FML) $244.3 $271.8 (10.1%) 126 130 Peninsula Energy Limited (ASX:PEN) $177.6 $171.2 3.7%

102 107 Equatorial Resources Limited (ASX:EQX) $239.6 $241.0 (0.6%) 127 124 Resource and Investment NL (ASX:RNI) $173.2 $192.5 (10.0%)

103 104 Noble Mineral Resources Ltd. (ASX:NMG) $238.4 $256.3 (7.0%) 128 131 Astron Ltd. (ASX:ATR) $169.5 $165.2 2.6%

104 116 Exco Resources Ltd. (ASX:EXS) $233.5 $220.0 6.1% 129 128 Azumah Resources Ltd (ASX:AZM) $166.1 $173.4 (4.2%)

105 94 Straits Resources Limited (ASX:SRQ) $232.1 $287.1 (19.2%) 130 140 Altona Mining Limited (ASX:AOH) $165.2 $148.7 11.1%

106 101 Greenland Minerals and Energy Ltd (ASX:GGG) $232.0 $260.4 (10.9%) 131 132 Alcyone Resources Ltd (ASX:AYN) $157.9 $164.1 (3.8%)

107 106 Orocobre Limited (ASX:ORE) $225.2 $249.8 (9.8%) 132 135 Stanmore Coal Limited (ASX:SMR) $157.1 $155.8 0.8%

108 108 Mincor Resources NL (ASX:MCR) $224.7 $240.7 (6.6%) 133 148 Australasian Resources Ltd (ASX:ARH) $157.1 $139.4 12.7%

109 113 Tanami Gold NL (ASX:TAM) $221.8 $227.1 (2.3%) 134 145 Cobar Consolidated Resources Ltd (ASX:CCU) $154.3 $142.5 8.3%

110 111 African Energy Resources Limited (ASX:AFR) $220.7 $231.1 (4.5%) 135 122 Platinum Australia Limited (ASX:PLA) $153.0 $200.1 (23.5%)

111 105 Hillgrove Resources Ltd. (ASX:HGO) $218.3 $254.0 (14.1%) 136 127 Continental Coal Limited (ASX:CCC) $151.8 $176.6 (14.0%)

112 110 Resource Generation Limited (ASX:RES) $216.9 $236.4 (8.2%) 137 136 YTC Resources Limited (ASX:YTC) $146.4 $155.0 (5.5%)

113 109 Atlantic Ltd (ASX:ATI) $216.2 $237.7 (9.0%) 138 134 Tribune Resources Limited (ASX:TBR) $143.4 $157.0 (8.7%)

114 129 WPG Resources Ltd (ASX:WPG) $201.9 $173.1 16.6% 139 144 Reed Resources Ltd. (ASX:RDR) $142.9 $144.2 (0.9%)

115 114 Northern Energy Corporation Ltd (ASX:NEC) $196.6 $221.8 (11.4%) 140 199 Indo Mines Limited (ASX:IDO) $141.4 $82.3 71.8%

116 118 NKWE Platinum Ltd. (ASX:NKP) $196.1 $214.8 (8.7%) 141 138 Pluton Resources Limited (ASX:PLV) $139.9 $154.4 (9.4%)

117 125 FerrAus Ltd. (ASX:FRS) $194.5 $182.1 6.8% 142 137 Robust Resources Limited (ASX:ROL) $137.6 $154.6 (11.0%)

118 121 Kula Gold Limited (ASX:KGD) $193.7 $202.7 (4.4%) 143 146 Ausgold Limited (ASX:AUC) $137.1 $140.8 (2.6%)

119 117 Gold Road Resources Limited (ASX:GOR) $193.3 $217.6 (11.2%) 144 147 Northern Minerals Limited (ASX:NTU) $136.6 $139.9 (2.4%)

120 123 Red 5 Ltd. (ASX:RED) $192.6 $199.0 (3.2%) 145 126 Blackgold International Hold. Ltd (ASX:BGG) $131.6 $135.0 (2.5%)

121 112 Highlands Pacific Limited (ASX:HIG) $192.1 $229.8 (16.4%) 146 142 IMX Resources Ltd. (ASX:IXR) $131.3 $147.1 (10.7%)

122 119 Deep Yellow Ltd. (ASX:DYL) $191.7 $214.2 (10.5%) 147 232 Papillon Resources Limited (ASX:PIR) $127.8 $65.8 94.2%

123 - Sylvania Platinum Ltd. (ASX:SLP) $188.7 $212.9 (11.4%) 148 141 Kentor Gold Limited (ASX:KGL) $127.5 $148.7 (14.3%)

124 133 Kangaroo Resources Limited (ASX:KRL) $180.7 $158.1 14.3% 149 158 Northern Star Resources Ltd. (ASX:NST) $124.9 $117.4 6.4%

125 120 Cerro Resources NL (ASX:CJO) $179.6 $211.9 (15.2%) 150 201 Minemakers Limited (ASX:MAK) $122.6 $81.5 50.4%

Group 150 Leaders and LaGGers - markeT capiTaLisaTion performance - mayLeaders

Laggers

Source: Capital IQ

* Included material placement, acquisition and/or option conversion during month

Jabiru Metals Limited (ASX:JML)Golden West Resources Limited (ASX:GWR) African Iron Limited (ASX:AKI)Sihayo Gold Limited (ASX:SIH)Berkeley Resources Ltd. (ASX:BKY)

Group 150

4

193.2 240.0 228.7 242.6 226.8 212.8 209.5 223.3 206.2 216.6 233.3 237.8 251.6 245.6 255.6 257.3 252.9 243.8

67.1

152.5 138.2 153.8

141.4 131.7 130.8 138.5 137.5 150.6

162.2 161.3 167.7 164.9 166.6 165.3 159.9 157.8 88.0

111.6 101.7

113.1 114.9

108.1 109.5 113.0 121.2

133.2 142.2 144.5

153.7 147.2 151.1 150.0 148.2 149.9

8.4

12.8 12.1

13.7 14.5

13.1 12.3 13.8 14.8

17.8 19.4 20.5

23.4 21.6 21.9 21.7 21.0 20.3

3.1

5.4 5.2

5.7 5.9

5.1 4.8 5.5 5.8

6.6 7.6 8.3

9.9 9.9 10.2 9.4 9.5 8.9

359.8

522.3 486.0

528.8 503.5

470.8 467.0 494.1 485.5

524.8 564.7 572.4

606.3 589.2 605.4 603.8 591.5 580.7

0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

Jun-09 Dec-09 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11

Mar

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Valu

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$b) -

Grou

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0

BHPBilliton Rio Tinto Company 3 - 50 Company 51 - 100 Company 101 - 150

580.7

merGer & acquisiTions - announced in may

Date Announced Target Acquirer Value

(A$m)

Percent Sought

(%)

Premium - 1 Day Prior

(%)

Premium - 1 Month Prior

(%)

Consideration Offered

25-May-2011 Goldminco Corp. (TSXV:GCP) Straits Resources Limited (ASX:SRQ) 13.5 29 81.8 100.0 Cash

23-May-2011 Territory Resources Limited (ASX:TTY) Exxaro Resources Limited (JSE:EXX) 148.2 100 64.3 67.3 Cash

23-May-2011 70% of RioAD LLC and Rio Gobi LLC Hunnu Coal Limited (ASX:HUN) 40.0 100 - - Cash

19-May-2011 New Hope Corp. Ltd., Lenton Project Mai-Liao Power Corporation 58.0 10 - - Cash

16-May-2011 Donaldson Coal Pty Ltd. Gloucester Coal Ltd. (ASX:GCL) 590.5 100 - - Cash; Equity

16-May-2011 Gold One International Limited (ASX:GDO)

China Development Bank Corporation; Baiyin Nonferrous Metal (Group) Co., Ltd.; China-Africa Development Fund; Long March Capital Group

510.5 100 27.9 26.4 Cash

Source: Capital IQ Announced Australian Resources (excluding oil and gas) Mergers and Acquisitions >A$10m

Group 150 markeT capiTaLisaTion

asX indeX performance - may

+61.4%

Group 150 mkT cap - By commodiTy

JUNE 2011

5

GeneraTinG reTurns whiLe proTecTinG The downside - The franco-nevada sTory

Source: Webisite, Bloomberg, Capital IQ

Founded in 1982, Franco-Nevada had grown to a US$3 billion company by the time it was acquired by Newmont in 2002.

Franco-Nevada (“Franco”) and Euro-Nevada were founded in 1982 by two Canadian entrepreneurs, Pierre Lassonde and Seymour Schulich. In 1986, Old Franco made its first royalty acquisition, and acquired or created additional royalties and resource investments from 1986 to 2002.

The concept was to build a company from the cash flow stream of gold royalties which provide yield and more upside than a gold ETF but with less risk than a mine operator - a virtual mining company with no operating risk or capital expenditure commitments.

While Franco focussed on North American gold royalties (with some interests in oil and gas and platinum), sister company Euro-Nevada focussed on building a portfolio of international gold royalties. The royalty portfolio was substantially made up of interests in significant assets, operated by industry leaders in regions of low political risk and is balanced across a number of commodities and stages of development.

Historically, Franco and Euro-Nevada were kept separate for tax efficiency. In September 1999, however, the two companies took the inevitable step and merged under the name Franco-Nevada (“Old Franco-Nevada”).

Old Franco-Nevada was one of Canada’s most successful companies, building a quality portfolio of royalties and delivering superior returns to shareholders in the process.

In 2000, an attempt to merge Old Franco-Nevada with Gold Fields Limited failed when the deal did not receive South African regulatory approval.

Old Franco-Nevada discovered, developed and brought into production the Midas mine in Nevada and sold its interest in this mine together with certain other assets to Normandy in the first half of 2001, in exchange for a 19.9% equity interest in Normandy and a continuing 5-10% NSR royalty interest on the Midas mine. At the same time Old Franco-Nevada’s royalties over Henty and New Celebration were transferred to Normandy.

Recognising the value of the company, Newmont Mining Corporation successfully acquired Old Franco-Nevada in February 2002 as part of its three-way merger with Normandy and Franco.

Franco’s key strategy was to use the investment flexibility that royalties offer to acquire direct interests in major ore bodies operated by the best companies in the business.

A key driver of Franco’s growth was its investment in early stage developments, gaining the right to participate in any future growth of properties without being responsible for development costs or environmental liabilities.

For example, when Franco bought the Goldstrike royalty, the project was operated by a relatively small company. A year later Barrick took it over, and had invested over US$1 billion to boost reserves from 600,000oz Au when the acquisition was made in 1986, to around 20Moz Au at the time of Old Franco-Nevada being acquired by Newmont. In 2010, the Goldstrike royalty contributed US$50m in revenue to Franco-Nevada.

The table illustrates the calibre of Franco’s portfolio in 2001 and the large number of Net Smelter Return (“NSR”) royalties. The strategy of acquiring NSR royalties provided Franco with a cash flow independent of the margin of the project, thereby providing some protection from adverse commodity price movements.

Franco-Nevada's Asset Portfolio (March 2001)Operator Interest

US OperationsMidas Franco-Nevada 5-10% NSRBetze-Post Barrick Gold 0-4% NSW, 5-6% NPIMeikle-Rodeo Barrick Gold 4% NSR, 5% NPIGetchell Placer Dome 2% NSRRosebud Newmont/Hecla 4% NSRCastle Mtn. Viceroy 1-5% NSRBriggs Canyon 2% NSRMaggie Creek Newmont/Hecla 2-8% NSRStillwater Stillwater Mining 5% NSRCanadian OperationsEskay Creek Homestake 1% NSRMouska Cambior 2% NSRHolt-McDermott Barrick Gold 0-4% NSRAustralian & International OperationsHenty Goldfields 1-10% NSRNew Celebration Newcrest 1-4% NSRBrowns Creek Hargraves 2.25% NSRMt. Muro Aurora 3-7% NSRProjectsCarlin Trend Franco-Nevada 100% WINevada Exploration Franco-Nevada 100% WICanada Exploration Franco-Nevada 50-100% WIAustralia Exploration Franco-Nevada 100% WIPandora, South Africa Angloplat 5% NSRCerro San Pedro, Mexico Metallica/Cambior 2% NSRMara Rosa, Brazil Metallica 1% NSRMara Rosa, Brazil Metallica 1% NSRDivisionsOil & Gas Franco-Nevada 100% WIMetals Franco-Nevada 100% WIInvestmentsVoisey's Bay Inco Limited 9.2% NPIDiavik Rio Tinto 3.5% NPI

WI - Working interest (projects operated by Franco-Nevada) NSR - Net smleter returns, NPI - Net profit interest

Group 150

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GeneraTinG reTurns whiLe proTecTinG The downside - The franco-nevada sTory

Franco-Nevada Corporation - a new beginning

In late 2007, a team including some Old Franco employees formed Franco-Nevada Corporation and on 20 December 2007, acquired a portfolio of Newmont royalties and other interests, completed a US$1.2 billion initial public offering, completed a bank debt facility and listed on the Toronto Stock Exchange.

In 2008 and 2009, the company raised additional equity in order to grow the royalty and stream portfolio. In March 2011, Franco-Nevada acquired Gold Wheaton Corporation which added additional gold and PGM streams.

The current portfolio includes over 340 assets covering properties at various stages from operations to early stage exploration. Royalties are mostly revenue-based but the portfolio also includes profit-based and stream-based royalties.

Franco-Nevada Asset Portfolio - May 2011

Gold PGM Other Minerals Total Mineral Oil & Gas Total

Producing 28 3 6 37 135 172

Advanced 19 0 4 23 0 23

Exploration 124 2 19 145 * 145

Total 171 5 29 205 135 340

* 157 undeveloped oil & gas interests not included in asset counts Details of the current portfolio can be found at www.franco-nevada.com/files/Asset%20Listing%202010AR.pdf

Currently, Franco-Nevada’s market capitalisation is in excess of C$4.5 billion, and analyst consensus estimates indicate the company will generate NPAT of C$120m on revenues of C$340m in 2011, implying a margin of ~35% and a price to earnings ratio of ~39x.

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JUNE 2011

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Share Price Performance - May 2011

Share Price Performance - Since 31 December 2010

Share Price Performance - Since 30 June 2010

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Group 150

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form

ance

indusTriaL mineraLs - secTor performance

Shar

e Pric

e Per

form

ance

Shar

e Pric

e Per

form

ance

Shar

e Pric

e Per

form

ance

Group 150

10




GoLd - secTor performance

Shar

e Pric

e Per

form

ance

Shar

e Pric

e Per

form

ance

Shar

e Pric

e Per

form

ance

JUNE 2011

11




iron ore - secTor performance

Shar

e Pric

e Per

form

ance

Shar

e Pric

e Per

form

ance

Shar

e Pric

e Per

form

ance

Group 150

12




pLaTinum - secTor performance

Shar

e Pric

e Per

form

ance

Shar

e Pric

e Per

form

ance

Shar

e Pric

e Per

form

ance

uranium - secTor performance

Shar

e Pric

e Per

form

ance

Shar

e Pric

e Per

form

ance

Shar

e Pric

e Per

form

ance

JUNE 2011

13

consensus commodiTy price forecasTs - may

Source: Bloomberg Consensus Estimates - Median / High / Low

Gold (US$/oz) Silver (US$/OZ)

Copper (US$/lb) Nickel (US$/lb)

Zinc (US$/lb) Lead (US$/lb)

Tin (US$/lb) Uranium (US$/lb)

AUD:USD NYMEX (US$/bbl)

$1,536 $1,450 $1,400 $1,231 $1,159

$0

$500

$1,000

$1,500

$2,000

$2,500

Spot 2011 2012 2013 2014

$38.52 $31.50

$25.58 $20.00 $19.82

$0

$10

$20

$30

$40

$50

$60

Spot 2011 2012 2013 2014

$4.18 $4.42 $4.68 $3.87 $3.71

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

Spot 2011 2012 2013 2014

$10.70 $11.57 $10.43 $9.75 $10.29

$0.00

$4.00

$8.00

$12.00

$16.00

Spot 2011 2012 2013 2014

$1.03 $1.09 $1.11 $1.11 $1.09

$0.00

$0.50

$1.00

$1.50

Spot 2011 2012 2013 2014

$1.14 $1.17 $1.20 $1.12 $1.07

$0.00

$0.50

$1.00

$1.50

$2.00

Spot 2011 2012 2013 2014

$12.67 $13.62 $14.06

$9.07 $10.36

$0.00$2.50$5.00$7.50

$10.00$12.50$15.00$17.50$20.00

Spot 2011 2012 2013 2014

$56.00 $64.50 $63.25 $60.00

$53.00

$0

$25

$50

$75

$100

Spot 2011 2012 2013 2014

$1.07 $1.02 $1.00 $0.94 $0.92

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

Spot 2011 2012 2013 2014

$102.37 $97.75 $102.00 $108.00 $115.00

$0

$50

$100

$150

$200

Spot 2011 2012 2013 2014

Group 150

14

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Terms and ConditionsInformation contained in this publicationThe opinions, advice, recommendations and other information contained in this publication, whether express or implied, are published or made by Gresham Advisory Partners Limited (ABN 88 093 611 413), Australian financial services license (247113), and by its officers and employees (collectively “Gresham Advisory Partners”) in good faith in relation to the facts known to it at the time of preparation. Gresham Advisory Partners has prepared this publication without consideration of the investment objectives, financial situation or particular needs of any individual investor, and you should not rely on the publication for the purpose of making a financial decision. To whom this information is providedThis publication is only made available to persons who are wholesale clients within the meaning of section 761G of the Corporations Act 2001. This publication is supplied on the condition that it is not passed on to any person who is a retail client within the meaning of section 761G of the Corporations Act 2001.Disclaimer and limitation of liabilityTo the maximum extent permitted by law, Gresham Advisory Partners will not be liable in any way for any loss or damage suffered by you through use or reliance on this information. Gresham Advisory Partners’ liability for negligence, breach of contract or contravention of any law, which cannot be lawfully excluded, is limited, at Gresham Advisory Partners’ option and to the maximum extent permitted by law, to resupplying this information or any part of it to you, or to paying for the resupply of this information or any part of it to you.No warranties made as to contentGresham Advisory Partners makes no warranty, express or implied, concerning this publication. The publication provided by us on an “AS IS” basis at your sole risk. Gresham Advisory Partners expressly disclaims, to the maximum extent permitted by law, any implied warranty of merchant-ability or fitness for a particular purpose, including any warranty for the use or the results of the use of the publication with respect to its correctness, quality, accuracy, completeness, or reliability.CopyrightCopyright in this publication is owned by Gresham Advisory Partners. You may use the information in this publication for your own personal use, but you must not (without Gresham Advisory Partners’ consent) alter, reproduce or distribute any part of this publication, transmit it to any other person or incorporate the information into any other document.General mattersThese Terms and Conditions are governed by the law in force in the State of Victoria, and the parties irrevocably submit to the non-exclusive jurisdiction of the courts of Victoria and courts of appeal from them for determining any disputes concerning the Terms and Conditions.If the whole or any part of a provision of these Terms and Conditions are void, unenforceable or illegal in a jurisdiction it is severed for that jurisdiction. The remainder of the Terms and Conditions have full force and effect and the validity or enforceability of that provision in any other jurisdiction is not affected. This clause has no effect if the severance alters the basic nature of the Terms and Conditions or is contrary to public policy.If Gresham Advisory Partners do not act in relation to a breach by you of these Terms and Conditions, this does not waive Gresham Advisory Partners’ right to act with respect to subsequent or similar breaches.

Advised BHP Billiton on its

$204m offer for United Minerals

Corporation.

Advised BG Group on its $1bn takeover offer for

Pure Energy Resources Limited.

Advised IAMGOLD Corporation on its $265m acquisition

of Gallery Gold.

Advised Gem Diamonds on its

$300m acquisition of Kimberley Diamonds.

Advised Polaris Metals NL on

$178m takeover offer by Mineral

Resources Limited.

Advised Tethyan on its $220m

competing takeover offer by Crosby and Antogafasta/Barrick.

Advised Iluka on its $114m

institutional placement and

$353m accelerated right issue.

Advised Bannerman

Resources on its financing with

Resource Capital Funds.

Advised Iluka Resources on its

$54m Narama coal divestment to

Xstrata.

Advised Murchison Metals

on its joint venture with Mitsubishi.

2010

2010

Advised BHP Billiton on its

US$116bn iron ore production

joint venture with Rio Tinto.

2010

Introduced Denham Capital to

Trans Tasman Resources resulting

in NZ iron sands investment.

2010

2009

Advised Indophil on $545m

recommended offer from Zijin

2010

Advised BHP Billiton on the disposal of the Yabulu Nickel

refinery.

2009

Advised Allied Gold on its $54m

acquisition of Australian

Solomons Gold.

2009

Advised Brandrill Limited on its

$45m takeover offer by Ausdrill

Limited.

2009

2008

Advised Kalahari Minerals on its

$140m proposed merger with

Extract Resources.

2008

Advised Centaurus

Resources on its $20m merger

with Glengarry Resources.

2010

2009/08

2008

Advised Summit Resources on its

A$1.2bn takeover by Paladin Energy.

2007

2008

2006

2007

2008

Advised Guandong Rising on its $216m

cornerstone investment in Pan

Aust.

GRAM2009

Advised Energy Metals on its $86m

proportional takeover offer by China

Guangdong Nuclear Power Group.

2009

Mergers and Acquisitions

Takeover Defence

Strategic Advisory, Joint Ventures and Capital Markets

recenT resources TransacTions

Takeover Defence

Strategic Advisory, Joint Ventures and Capital Markets

Mergers and Acquisitions

Documents

Gresham "Group 150" - June 2011