Investor PresentationOctober 2013

TSX : FRUAdvisories

Note: All dollar amounts in this presentation are in Canadian dollars, except where noted.

Forward-Looking InformationThis presentation offers management’s assessment of Freehold’s future plans and operations and contains forward-looking information pertaining to Freehold’s expected tax horizon, dividend policy and timing for paying dividends, tax treatment of dividends, future business strategy, and assumptions regarding commodity prices, production, capital spending plans, costs, year-end debt, DRIP participation, taxes payable, and shares outstanding. The key assumptions used in the preparation of this presentation are footnoted on the accompanying slides. Risks and uncertainties that could significantly affect these forward-looking statements are outlined in our Annual Information Form, which is filed on sedar.com. Forward-looking information is provided to facilitate a better understanding of our business and prospects but should not be unduly relied upon as actual results could differ materially. We assume no obligation to update or revise these forward-looking statements except as required by law.

Additional GAAP Measures and Non-GAAP Financial MeasuresWithin this presentation and identified where applicable, references are made to terms commonly used as key performance indicators in the oil and gas industry, which we believe are useful supplemental measures for management and investors to analyze operating performance, financial leverage, and liquidity. We use these terms to facilitate the understanding and comparability of our results of operations and financial position. However, these terms do not have any standardized meanings prescribed by Canadian generally accepted accounting principles (GAAP) and therefore may not be comparable with the calculations of similar measures for other entities. Additional information is provided in our most recent annual and quarterly reports, which are filed on www.sedar.com.

Barrels of Oil Equivalent (boe) ratio: 6 Mcf = 1 barrelThe 6:1 boe ratio is based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value.

2

TSX : FRUCorporate Profile

2013e production(1) (71% royalty production)

boe per day8,800

Annual dividend ($0.14 per month)

$ per share1.68

Current dividend yield(2)

percent7

Market capitalization(2)(3)

$ billion1.6

Net debt to funds from operations(4)

times0.5

(1) Per guidance dated August 8, 2013.(2) Based on FRU closing share price of $23.78 on September 30, 2013.(3) Based on 67.3 million shares outstanding as at September 30, 2013.(4) Based on net debt of $50.6 million as at June 30, 2013 and 12 months trailing funds from

operations of $111.7 million.

focused on oil and gas royalties

3

TSX : FRUAnnual Guidance*

Key Assumptions (as at August 8, 2013) 2013

Daily production boe/d 8,800

WTI oil price US$/bbl 96.00

Western Canada Select (WCS) Cdn$/bbl 75.00

AECO natural gas price Cdn$/Mcf 3.00

Exchange rate Cdn$/US$ 0.98

Operating costs $/boe 5.30

G&A costs $/boe 2.60

Capital expenditures $ millions 32

Dividends paid in shares (assumes average 25% DRIP participation) $ millions 28

Long-term debt at year end $ millions 44

Estimated cash taxes payable in 2013 for 2012 tax year $ millions 22

Estimated cash taxes payable for 2013 tax year (instalments) $ millions 24

Weighted average shares outstanding millions 67

* See advisory regarding forward-looking information. 4

TSX : FRUOur History

• Operating since 1979

• Private royalty holding company

• Held royalty interest properties (including Hudson’s Bay lands) and minor working interests that were acquired by Freehold in 1996

• Operating since 1983

• Private oil and gas company

• Held working interest properties and minor royalty interests that were acquired by Freehold in 1996

• Established as Freehold Royalty Trust in 1996

• Converted to a corporation December 31, 2010

Wholly owned byCN Pension Trust

Funds

5

TSX : FRUProud Owner of Legacy Lands

Mineral titles are held in perpetuity

Historic land grant to the Hudson’s Bay Company (HBC) in 1670 by the King of England

HBC surrendered land to Canada in 1870 in exchange for cash and 1/20th of lands(Section 8 and ¾ of Section 26) in western Canada (HB Lands)

The 8s and 26s

A portion of the HB Lands were purchased by Canpar in 1979 Producing HB Lands were purchased from Canpar by Freehold in

1996.

6

TSX : FRUInvestment Performance*

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 YTD

$178

$37 $33

Freehold Royalties Ltd.

S&P/TSX Oil and Gas Exploration & Production Index

S&P/TSX Composite Index

* From November 25, 1996 to September 30th, 2013, with dividend reinvestment. 7

Cumulative dividends declared

$26.83 per share

($1.2 billion in dividends)

TSX : FRUFreehold Ownership

67,326,013 shares outstanding (September 30th, 2013)

Insider holdings CN Pension Trust Funds – 18,038,942 (26.8%)

» Rife: 4,183,861 (6.2%) (included in above number for CNID)

Institutional (57%)

Retail (43%)

Canadian (90%)

U.S/Foreign (10%)

8

TSX : FRUBusiness Overview

9

• We’re a simple story, we primarily collect royalties from E&P producers that drill on our lands….at no cost to us.

• We have next to no leverage, very low cash costs with spending generally in-line with our cash flow, creating enhanced dividend sustainability.

• We’re a “defensive” option in a down market and given we don’t hedge, participate in a rising commodity environment.

• Operationally, we participate in ~15 net wells per year and focus on making accretive acquisitions to add to our respective royalty interest.

TSX : FRUWhy Own Freehold?

10

conservative management, low risk profile

large royalty portfolio

high dividend payout

low costs & predictable growth modelRoyalt

yFocus

TSX : FRU

CardiumHeavy

Oil

Bakken,Mississippian

Development Opportunities

North Saskatchewan River

3milliongross acres

Viking

11

Royalty interests 94%

Working interests 6%

Oil resource plays

TSX : FRUThe Royalty Advantage: Netbacks

Illustration does not factor in capital costs on working interest properties.

* Non-GAAP measure. See slide 39.

** Excludes freehold mineral taxes payable to the Crown.

A Working Interest BarrelOperating netback*

~ 60% of gross revenue

A Royalty Interest BarrelOperating netback*

~ 100%** of gross revenue

OperatingNetback(60% ofgross

revenue)

OperatingNetback(100% of

grossrevenue)

Royalties Paid(15%)

Operating Costs(25%)

12

TSX : FRU The Royalty Advantage: Peers

13

NVA

BNP

TOU

PEY

BIR

TBE

PGF

ERF

ARX

PWT

BTE

ZAR

WCP

BNE

FRU

CPG

LEG

LTS

PRY

VET

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00

PEY

TOU

FRU

BIR

BNP

ARX

ERF

WCP

CPG

BNE

NVA

VET

LTS

BTE

LEG

PGF

PWT

ZAR

PRY

TBE

$0.00 $5.00 $10.00 $15.00 $20.00 $25.00

2013 YTD Avg. Operating Netback ($/boe)2013 YTD Avg. Operating Costs ($/boe)

• FRU’s liquids weighting and low cost model drive top decile economics.

TSX : FRURoyalty-Focused Production

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 H1

0

2,000

4,000

6,000

8,000

10,000

Royalty Interest Production Working Interest Production

boe/d

8,88970%royalties

14

TSX : FRU

15

Gross Revenue (%)

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 6mo

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Royalty Interest Production Working Interest Production

%

TSX : FRUTop Royalty Payors/Operators*

* Top 30 payors account for over 80% of royalty revenue on a trailing 12 month basis.

CanEra Energy Corp.

16

TSX : FRUWhy Own Freehold?

17

conservative management, low risk profile

large royalty portfolio

high dividend payout

low costs & predictable growth modelRoyalt

yFocus

TSX : FRU

$32 million

2013 Capital Allocation*

* Per guidance dated August 8, 2013.

47 (16 net) wells

Southeast Saskatchewan

50%

Lloydminster Heavy Oil

25%

CardiumLight Oil

25%

18

TSX : FRUCapex Requirements

2009 2010 2011 2012 2013e0%

25%

50%

75%

100%

125%

150%Capital Expenditures as a Percentage

of Funds from Operations

Sector Average Freehold

* See non-GAAP measures.

Sector average 101%

Freehold average 22%

19

TSX : FRUFRU Mirrors Industry Activity

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

5,000

10,000

15,000

20,000

25,000

30,000

0

200

400

600

800

1,000

Industry Drilling, WCSB Drilling on our Royalty Lands

Wells drilled by industry

Gross wells drilled on Freehold’s royalty lands

20

Over 9,000 wells drilled on Freehold’s royalty lands

Reserves per Well Added (Mboe)

New Reserves per Well0

200

400

600

800

1000

1200

0

50

100

150150

50

100

TSX : FRURoyalty Drilling Trends*

21

2007 2008 2009 2010 2011 2012 H1 20130

5

10

15

20

Oil HzOil VertGas HzGas VertOtherD&A

53% Oil35% Hz

57% Oil32% Hz

44% Oil30% Hz

58% Oil37% Hz

85% Oil59% Hz

92% Oil 66% Hz

86% Oil60% Hz

* Equivalent net wells drilled on Freehold’s royalty land.

TSX : FRUAcquisition Strategy

Focused on Royalties

Accretive Acquisition

s

Equity financings in 2001, 2005, 2009, and 2012.

Buy existing royalties

Development funding Capital contribution

in return for a royalty

$650 million since inception 90% royalties

22

TSX : FRUAccretive Acquisitions

Equity financings in 2001 ($30M), 2005 ($260M), 2009 ($110M), and 2012 ($68M).

Year AreaCost

($ millions)

Initial ProductionAcquired

(boe/d)

1997 Alberta/Saskatchewan $22 700

2001 Southeast Saskatchewan 25 800

2005 Petrovera (CNRL) 352 3,800

2007 Alberta/Saskatchewan 90 700

2010 Alberta, Sask. and B.C. 38 400

2011 Northwest Alberta 7 100

2012 Alberta, Sask. and B.C. 60 600

1997–2012 Numerous small acquisitions 59 1,200

Total:$

6538,300

23

TSX : FRUWhy Own Freehold?

24

conservative management, low risk profile

large royalty portfolio

sustainable dividend payout

low costs & predictable growth modelRoyalt

yFocus

TSX : FRUStable, Attractive Dividend*

2009 2010 2011 2012 2013e

$1.40

$1.68 $1.68 $1.68 $1.68

Annual Dividend($/share)

Eligible dividends for Canadian tax purposes.

* See advisory regarding forward-looking information. 25

TSX : FRUStrong Financial Position

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Debt to Funds from Operations*

Sector Average Freehold

(multiple)

* See advisory regarding non-GAAP financial measures.

$155 millionavailable credit capacity

(at June 30, 2013)

26

TSX : FRUAvailable Dry Powder

Annual Dividend($/share)

27

• FRU maintains significant dry powder.

• Our D/CF and credit facility utilization remain well positioned.

• We see our dividend as sustainable within the current commodity environment.

TSX : FRUFRU Stock Price Tracks Oil Price

Jan/2008 Jan/2009 Jan/2010 Jan/2011 Jan/2012 Jan/2013 -

25.00

50.00

75.00

100.00

125.00

150.00

-

5.00

10.00

15.00

20.00

25.00

30.00

WTI Oil Price (US$) FRU Share Price (CDN$)

WTI in US$ FRU in C$

To September 30, 2013.

100%unhedged

63%oil and NGL production

28

TSX : FRUWhy Own Freehold?

29

conservative management, low risk profile

large royalty portfolio

high dividend payout

low costs & capex and predictable growth modelRoyalt

yFocus

TSX : FRUThe Manager

CN PENSION TRUST FUNDSPension fund for employees of Canadian National Railway

100% ownership

27% ownership

100% ownership Manager of the assets

30

TSX : FRUBoard of Directors

Nolan Blades Harry Campbell Peter Harrison Arthur Korpach

Tom Mullane David Sandmeyer Rodger Tourigny Aidan Walsh

31

TSX : FRU2013 YTD Relative Performance*

Lightstream

Perpetual

Twin Butte

Zargon

Bonavista

Trilogy

Baytex

S&P/TSX Composite

Penn West

Freehold

Vermilion

Crescent Point

Surge

ARC

Advantage

Pengrowth

Enerplus

Peyto

Whitecap

-22.0%

-12.7%

-12.0%

-7.9%

-7.5%

-3.1%

2.0%

2.5%

8.9%

11.9%

12.3%

13.2%

13.5%

14.7%

24.5%

30.2%

34.1%

39.4%

40.5%

FRU: 11.9%

* Year to date to September 30th, 2013.

Freehold

32

40.5%

TSX : FRUPerformance Since Corporate Conversion

33To September 30, 2013.

Dec 2010 Dec 2011 Dec 2012 Dec 201350

75

100

125

150

FRU S&P/TSX Composite S&P/TSX Oil & Gas E&P

+43.5%

+1.6%

-23.0%

TSX : FRU2013 First Half Results

34* See advisory regarding forward-looking information.

2013

H1 Actual

AnnualGuidance*

Production boe/d 8,889 8,800

Capital $ millions 18 32

DRIP participation $ millions 12 28

Cash taxes payable: 2012 tax year 2013 instalments

$ millions

$ millions

2212

2224

Long-term debt $ millions 55 44

Supplemental Information

TSX : FRULand Holdings*

3.0 million gross acres 21% held in perpetuity

(630,000 gross acres of mineral title and royalty assumption lands; 80% leased)

833,000 gross acres undeveloped

Undeveloped land independently valued at $80.2 million

30,000 oil and gas wells

Land Profile

Mineral title lands - 21%

Gross overriding royalties - 73%

Working interest properties - 6%94%

royalties* As at December 31, 2012. 36

TSX : FRUReserves Profile*

Net Reserves 15.1 MMboe proved

» 57% oil and NGL

» 5.9 year RLI

24.4 MMboe P+P» 60% oil and NGL

» 8.5 year RLI

Net Proved Plus Probable Reserves

Light and medium crude oil - 24%

Heavy crude oil - 30%

Natural gas liquids - 6%

Natural gas - 40%

93% of our proved reserves

are producing

* As at December 31, 2012. 37

TSX : FRUProduction Profile

H1 2013 average 8,889 boe/d 71% royalty production 63% oil and NGL

2013 forecast* 8,800 boe/d

Our oil-weighted production is currently

unhedged

Production Profile

Light and medium crude oil - 33%Heavy crude oil - 25%Natural gas liquids - 5%Natural gas - 37%

38* 2013 forecast per guidance dated August 8, 2013.

TSX : FRUWhat is a Royalty?

A payment based on a percentage of gross production

Crown Royalty Mineral rights owned by the government (Crown) Leases auctioned at Crown land sales Royalty rates set by the Crown Held by the Crown in perpetuity

Mineral Title Royalty Minerals rights privately owned Lease terms and royalty rate negotiated Held by the private owner in perpetuity

Gross Overriding Royalty (GORR) A contractual royalty interest created out of a working interest Expires upon termination of the lease

39

TSX : FRU2012 Operational Highlights

RoyaltyInterest

WorkingInterest

TotalCompany

Royalty Percent

Net reserves Mboe 19,017 5,408 24,425 78%

Average production boe/d 6,263 2,587 8,850 71%

Acquisitions(1) $ millions 60 - 60 100%

Royalty expense(2) $ per boe 0.07 6.68 2.00 2%

Operating expense $ per boe - 16.47 4.82 0%

(1) Includes undeveloped land.(2) Royalty expense includes both Crown charges and royalty payments to third parties.

Focus on Royalties

40

TSX : FRUAttractive Dividend

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$0

$10

$20

$30

$40

$50

$60

$70

$80

$0.13

$1.10

$0.65 $0.78

$1.32

$1.56

$1.31

$1.70 $1.73

$1.92

$2.10

$1.92

$2.91

$1.40

$1.68 $1.68 $1.68

Annual Dividend ($/share) Freehold's Average Selling Price ($/boe)

Dividend ($/share)

Selling Price($/boe)

Eligible dividend for Canadian tax purposes. 41

TSX : FRU2012 Acquisitions

Alberta, Sask. August 31, 2012 $10.9 million 6,100 net acres Production

» 90 boe/d

» 75% liquids

future development potential

Alberta, Sask., B.C. January 17, 2012 $49.3 million 250,000 gross acres Production

» 530 boe/d

» Mostly natural gas

42

TSX : FRU2013 Sensitivities

VariableChange

(+/-)

Estimated Change in

Funds From Operations

($ per share)

WTI oil price US$1.00/bbl 0.02

Canadian/U.S. dollar exchange rate US$0.01 0.02

Edmonton Par/WCS differential Cdn$1.00/bbl 0.02

AECO natural gas price Cdn$0.25/Mcf 0.02

Interest rate 1% 0.01

Oil and NGL production 100 bbls/d 0.03

Natural gas production 1,000 Mcf/d 0.01

* See advisory regarding forward-looking information. 43

Investor Relationstoll free. 888.257.1873telephone. 403.221.0833website. freeholdroyalties.com