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Sandstorm Gold Ltd (SAND) Meets 2014 Production Forecast, Provides Corporate Update

February 23, 2015 9:16 AM EST

Sandstorm Gold Ltd. (NYSE: SAND) is pleased to announce that the Company has met its 2014 production guidance, with 44,821 attributable gold equivalent ounces sold1,2 during the year. Revenue and cash flow from operations for 2014 were US$56.5 million and US$35.2 million respectively2. Based on the Company's existing gold streams and royalties, attributable gold equivalent production for 2015 is forecasted to be between 36,000 and 44,000 ounces, increasing to 45,000 ounces per annum in 2018. The Company's 2018 guidance excludes any ounces that may come from Luna Gold Corp.'s ("Luna") Aurizona mine in Brazil ("Aurizona").

Sandstorm is expecting to release its 2014 fourth quarter and annual results by March 31, 2015.

— Corporate Update

Upon the closing of the recently announced acquisition of Gold Royalties Corporation (see press release dated February 18, 2015), Sandstorm has a portfolio of 69 streams and royalties with 14 of the underlying mines producing gold. As of December 31, 2014, the Company had $90 million in cash and $170 million in available capital (cash net of commitments plus $100 million undrawn credit facility) which can be deployed into new acquisitions. Sandstorm plans to grow and diversify its future gold production and cash flow through the acquisition of additional streams and royalties. Below are details related to announcements by Metanor Resources Inc. ("Metanor") and Luna as well as a recent addition to the Sandstorm technical team.

Metanor Resources – Bachelor Lake MineMetanor has announced an amendment to their outstanding convertible debentures (the "Debentures") and an equity financing, which upon closing will put Metanor in an improved financial position as they continue to produce gold at the Bachelor Lake mine in Quebec, Canada. The amendment resolution extends the maturity date of the Debentures by 24 months, to August 22, 2017 and is conditional upon an equity financing of no less than CAD$3.0 million and an immediate repayment of CAD$1.0 million in principal, plus accrued interest. The resolution also grants Metanor the right to repurchase the Debentures at any time, in whole or in part, prior to the extended maturity date.

Luna Gold – Aurizona MineLuna recently announced that they have begun the process of suspending mining operations at Aurizona, but will continue to run the mill, processing stockpiled ore. There is sufficient stockpiled ore for Luna to process 860,000 tonnes over five months at an expected grade of 1.10 grams per tonne. In an effort to conserve capital, Luna has cutback mine site personnel and halted all non-essential capital programs. Luna will require additional capital to restart economical mining activities at Aurizona.

The management team at Luna is focused on the development of an updated NI 43-101 technical report to provide a mineral reserve estimate based on a new geological model and updated project parameters. Sandstorm and Luna continue to work towards amending the Aurizona stream agreement.

Sandstorm Technical Team Adds Keith LaskowskiTo support the Company's corporate development efforts, Sandstorm has added Keith Laskowski to its technical team. Mr. Laskowski joined Sandstorm from the International Finance Corporation ("IFC") where he was employed as Staff Engineer/Principal Mining Specialist for the mining division. In that role he was responsible for technical appraisal and valuation of IFC's resource investments, and was focused on investment analysis of mining/exploration properties throughout the world. Prior to joining the IFC, Mr. Laskowski assembled, financed, and directed successful private and publicly listed exploration companies located in Peru, Mongolia, Haiti, Mali, the United States, and Canada. Most recently, he was the President and CEO of Estrella Gold Corp., a Peru-focused prospect generator exploration company from 2009 to 2012 and he also worked at senior levels with Newmont Mining Corporation, spending 17 years in gold production, exploration, resource development and acquisitions. He earned a Master of Science degree in Geology from the Colorado School of Mines (1987), a B.A. degree from the University of Maine (1979) and is a "Qualified Person" as defined by NI 43-101 of the Canadian Securities Administrators.

Note 1Sandstorm has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. The Company's royalty income is converted to an attributable gold equivalent ounce basis by dividing the royalty income for that period by the average realized gold price per ounce from the Company's gold streams for the same respective period. These attributable gold equivalent ounces when combined with the gold ounces sold from the Company's gold streams (individually and collectively referred to as "Attributable Gold Equivalent") equal total Attributable Gold Equivalent ounces sold. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS measures differently.



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