Vancouver, British Columbia | Sandstorm Gold Ltd. (dba Sandstorm Gold Royalties, “Sandstorm” or the “Company”) (NYSE American: SAND, TSX: SSL) is pleased to provide a summary of the results from the Hod Maden Pre-Feasibility Study (“PFS”). All figures are in U.S. Dollars and are on a 100% project basis unless otherwise stated. Sandstorm has a 30% interest in the Hod Maden project.

— PRE-FEASIBILITY STUDY HIGHLIGHTS

Economics
•Pre-tax NPV (5% discount rate) of $1.4 billion and an internal rate of return (“IRR”) of 60%
•Post-tax NPV (5% discount rate) of $1.1 billion and an IRR of 50%
•All-in sustaining costs are estimated to be $374 per ounce on a co-product basis1
•Upfront capital cost of $272 million

Reserves
•Proven and Probable Mineral Reserves of 2.61 million ounces of gold and 129,000 tonnes of copper

Production
•Mine life of 11 years with average annual mill throughput of 900,000 tonnes
•Annual average production of approximately 266,000 gold equivalent (“AuEq”) ounces
•Average head grade of 11.9 grams per tonne (“g/t”) AuEq


“Hod Maden was discovered only three years ago and has since made remarkable progress towards production, at a pace that few projects in the mining industry could match and Sandstorm is pleased to be partnered with one of the best Turkish mining operators,” said President & CEO Nolan Watson. “The PFS outlines total production of more than 2.6 million gold equivalent ounces over an 11 year mine life and with the by-product credits from copper, we expect gold to be produced at a low all-in sustaining cost. The current financing plan is 65% debt financing, leaving Sandstorm’s capital contribution at less than $30 million. I look forward to continued development at Hod Maden and as further exploration and technical work is completed, we expect this resource base to grow even larger than currently outlined.”


— SUMMARY OF KEY PARAMETERS AND PROJECT ECONOMICS

Mill Capacity

900,000 tonnes per annum


Mine Life

11 Years


Average Annual Production
Gold: 200,000 ounces
Copper: 12,600 tonnes

Total Production
Gold: 2,030,000 ounces
Copper: 122,800 tonnes

Average Recovery Rate
Gold: 77%
Copper: 94%

Average Head Grade
Gold: 8.9 g/t
Copper: 1.4%

All-In Sustaining Cost1

Co-product: $374/oz

Upfront Capital

$272 million

Base Case Commodity Price Assumption
Gold: $1,300/oz
Copper: $3.00/lb

NPV (5% discount rate)
Pre-tax: $1.4 billion
Post-tax: $1.1 billion

IRR
Pre-tax: 60%
Post-tax: 50%

Payback Period (from start of production)
Pre-tax: 1.3 years
Post-tax: 1.5 years

The PFS contemplates Hod Maden as an underground mine utilizing mechanized methods including transverse and longitudinal long hole open stoping with paste backfill. The main area will be mined from the bottom up in primary and secondary stopes with expected mine production of 900,000 tonnes per annum and a total of 9.1 million tonnes of ore produced during the 11 year mine life. Ore processing contemplates a single stage crush, various stages of milling, bulk floatation roughing, various stages of copper cleaning and regrind to produce a single copper concentrate containing gold. That concentrate will be transported to the Hopa port located on the Black Sea in Turkey for shipment to smelting facilities.

The mill will be built in the nearby Saliçor Valley to avoid contact with existing roads and housing. A tailings storage facility and waste dumps will be located on surface as will a main office, 120-person camp, laboratory, storage and water treatment facilities. Grid power is available on site and some workforce can be based out of nearby Artvin city. The capital cost estimate of $272 million includes a contingency of more than $32 million and mining costs are based on owner managed and operated assumptions.

With the release of the PFS, the Hod Maden project moves into the next stage of development. The majority operator, Lidya Madencilik Sanayi ve Ticaret A.S. (“Lidya”), has commenced the permitting process and is concurrently working on a gap analysis and trade-off studies. A feasibility study will begin by the end of 2018.

— MINERAL RESERVES AND RESOURCES


Mr. Andrew Hall of AMC Consultants Pty Ltd is the Qualified Person for reporting of the Mineral Reserve estimates. The Mineral Reserve is reported in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and Canadian Institute of Mining (CIM) Definition Standards for Mineral Resources and Mineral Reserves (2014). The Mineral Reserve estimate is reported above a cut-off grade of 2.6 g/t AuEq.

Reserve
Classification
Tonnes (kt) AuEq (g/t) Au (g/t) Cu (%) Contained Metal (koz AuEq) Contained
Metal (koz Au) Contained Metal (kt Cu)


Proven 4,289 11.6 8.6 1.4 1,600 1,191 59
Probable 4,831 12.2 9.1 1.4 1,895 1,418 70
Total 9,120 11.9 8.9 1.4 3,495 2,609 129
Notes: 1.The Mineral Reserve is estimated as at 31 May 2018 and using metal prices of US$1,250 oz Au and US$3.00 lb Cu.
2.CIM Definitions Standards (2014) were used in the preparation of the Mineral Reserve estimates.
3.Errors in the totals are due to rounding.
4.AuEq (g/t) is calculated as AuEq = Au g/t + [Cu % * (Metallurgical Recovery of Cu in % * Payable Cu in % * (Price of Cu in $/lb less realisation costs) less royalty * 22.046) / (Recovery of Au in % * Payable Au in % * (Price of Au in $ per gram less realisation costs) less royalty)].
5.Silver is not included in the AuEq calculation. It contributes only about 0.1% to the ore value.
6.The estimation was carried out using a cut-off grade of 2.60 g/t AuEq and a mining recovery of 95%.
7.Mineral Reserves are reported on the basis of mined ore to be delivered to the plant as mill feed.
8.Processing recovery and payable factors used were 77.1% and 93.9% respectively for gold and 94.2% and 95.0% respectively for copper.
9.Average planned and unplanned dilution factors of 12% and 6% respectively for transverse stoping and 44% and 10% respectively for longitudinal stoping were assumed.
10.Exchange rate used is 3.78 TRY = USD $1.00.
11.Mineral Reserves are defined within an underground mine plan. See the PFS for key assumptions, parameters and methods used to estimate the Mineral Reserve.


Mr. Rodney Webster of AMC Consultants Pty Ltd is the Qualified Person for reporting of the Mineral Resource estimates. The Mineral Resource is reported in accordance with NI 43-101 and CIM Definition Standards for Mineral Resources and Mineral Reserves (2014). The Mineral Resource estimate, reported above a cut-off grade of 2.0 g/t AuEq, for the two areas being considered, is shown below.

Resource Classification
Tonnes (kt) AuEq (g/t) Au (g/t) Cu (%) Ag (g/t)


Main Area Measured 4,630 12.8 9.6 1.5 2.6
Indicated 4,507 14.0 9.8 2.0 5.1
Total 9,137 13.4 9.7 1.8 3.9

South Area Measured - - - - -
Indicated 2,522 4.2 3.5 0.3 0.9
Total 2,522 4.2 3.5 0.3 0.9

Total Main plus
South Areas Measured 4,630 12.8 9.6 1.5 2.6
Indicated 7,029 10.5 7.6 1.4 3.6
Total 11,659 11.4 8.4 1.5 3.2

Inferred Main Area 447 3.7 1.6 1.0 1.6
South Area 416 3.6 3.0 0.3 0.7
Total Inferred 864 3.7 2.3 0.7 1.2

Notes:
1.Mineral Resources are stated as at 31 May 2018 and using metal prices of US$1,250 oz Au and US$3.00 lb Cu.
2.CIM Definition Standards (2014) were used for reporting of Mineral Resources.
3.The Mineral Resources are total and inclusive of any Mineral Reserves.
4.Errors in the totals are due to rounding.
5.AuEq (g/t) is calculated as AuEq = Au g/t + [Cu % * (Metallurgical Recovery of Cu in % * Payable Cu in % * (Price of Cu in $/lb less realisation costs) less royalty * 22.046) / (Recovery of Au in % * Payable Au in % * (Price of Au in $ per gram less realisation costs) less royalty)].
6.The South Area is defined as being south of 4,542,025 mN.
7.No allowance has been made for any previous mining.
8.Mineral Resources that are not Mineral Reserves have not demonstrated economic viability.
9.See the PFS for complete list of key assumptions, parameters and methods used to estimate the Mineral Resource.
10.The inferred resources reported herein have not been considered for the purposes of the PFS.

AMC is not aware of any known environmental, permitting, legal, title, taxation, socioeconomic, marketing, political, or other similar factors that could materially affect the stated Mineral Resource estimates. For complete discussion of risks that could affect the estimates disclosed, refer to the PFS.

The Hod Maden PFS was prepared in accordance with NI 43-101 by AMC Consultants Pty Ltd. (Melbourne, Australia), GR Engineering Services Limited (Perth, Australia) and Hacettepe Mineral Teknolojileri Ltd. ?ti. (Ankara, Turkey).

Sandstorm will file or furnish, as applicable, a Technical Report prepared in accordance with NI 43-101 for the PFS entitled “Hod Maden Project Pre-Feasibility Study NI 43-101 Technical Report” with an effective date of May 31, 2018 (the “Technical Report”). This Technical Report will be available today on SEDAR at www.sedar.com, on EDGAR at www.sec.gov or on Sandstorm’s website at www.sandstormgold.com.


— REVISED OUTLOOK & CONFERENCE CALL DETAILS
Based on Sandstorm’s existing portfolio, attributable gold equivalent ounces sold1 are forecasted to be between 54,000-60,000 ounces in 2018 and between 63,000-73,000 ounces in 2019. By 2023 with Hod Maden in its second year of production, Sandstorm forecasts attributable production to increase to 140,000 gold equivalent ounces.

A conference call will be held on Wednesday, June 27, 2018 starting at 8:30am PDT to further discuss the Hod Maden PFS results. To participate in the conference call, use the following dial-in numbers and conference ID, or join the webcast using the link below:

Local/International: (+1) 416 764 8688
North American Toll-Free: (+1) 888 390 0546
Conference ID: 70139830
Webcast URL: https://bit.ly/2sK7rQX