Sandstorm Gold Announces Record Gold Sales in Third Quarter 2013

Sandstorm Gold Ltd. (“Sandstorm” or the “Company”) (NYSE MKT: SAND, TSX: SSL) has released its unaudited results for the third quarter ended September 30, 2013 (all figures in U.S. dollars).

Third Quarter Highlights

• Record Gold sales of 9,570 ounces (excluding Premier Royalty’s attributable ounces).
• Revenue of $15.4 million.
• Average cash cost per ounce1 of $430 resulting in cash operating margins1 of $894 per ounce.
• Operating cash flow of $8.6 million.
• Acquired all of the outstanding common shares of Premier Royalty Inc. (“Premier Royalty”).
• Completed a $10 million loan to Luna Gold Corp. (“Luna”) in accordance with the previously announced commitment to issue a non-revolving loan facility to Luna.
• Amended the previously announced gold stream with Mutiny Gold Ltd. to a 2.6% gold stream on the Deflector mine.
• Net loss of $2.0 million primarily due to a non-cash impairment charge of $3.2 million related to the conversion of the Bracemac-McLeod gold stream into a 0.6% net smelter return royalty, and an approximately $1.5 million increase in expenses arising from the Premier Royalty business combination.

Sandstorm President & CEO Nolan Watson commented, “We are encouraged by the record gold sales and strong operating cash flow during the quarter. Over the next twelve months we anticipate that our assets will continue to ramp up production, while our general and administrative expenses are expected to decrease materially due to cost cutting and other reductions which have been made subsequent to quarter end. Having over $90 million in cash on our balance sheet enables us to actively pursue new streams and royalties, with the focus on increasing the Company’s per share value.”

On October 4, 2013, Sandstorm closed its previously announced arrangement agreement whereby the Company acquired all the outstanding common shares of Premier Royalty. As part of a general and administrative cost reduction plan, a number of the management team and employees of Premier Royalty were released, resulting in one-time costs that will be recognized during the fourth quarter of 2013.

Outlook

Based on the Company’s existing gold streams and excluding any attributable production relating to Premier Royalty, forecasted 2013 attributable production is between 33,000 and 37,000 gold equivalent ounces, increasing to approximately 60,000 gold equivalent ounces per annum by 2016. This growth is driven by the Company’s portfolio of gold streams with mines, almost all of which are either currently producing or expected to commence production by 2015.

Webcast and Conference Call Details

A conference call will be held on Wednesday, November 6, 2013 starting at 9:30am PST to further discuss the third quarter results. To participate in the conference call use the dial-in numbers below. It is recommended that participants dial in five minutes prior to the commencement of the conference call. To access an audio webcast of the conference call, click here. The webcast will also be available on the Sandstorm website.

Local/International: 647-788-4916
North American Toll-Free: 877-214-4966

Sandstorm’s Management's Discussion and Analysis (MD&A) and Financial Statements for the third quarter results will be accessible on the Company’s website and on SEDAR at www.sedar.com. The Company has also completed a Form 6-K filing with the SEC that will be accessible on EDGAR atwww.sec.gov/edgar.shtml. Shareholders can request a hard copy of the MD&A and Financial Statements by emailing info@sandstormltd.com.