Vancouver, British Columbia | Sandstorm Gold Ltd. (“Sandstorm Gold Royalties”, “Sandstorm” or the “Company”) (NYSE American: SAND, TSX: SSL) has released its results for the second quarter ended June 30, 2018 (all figures in U.S. dollars).

SECOND QUARTER HIGHLIGHTS
•Revenue of $18.9 million (Q2 2017 - $16.1 million);
•Attributable gold equivalent ounces1 sold of 14,465 ounces (Q2 2017 – 12,750 ounces);
•Average cash cost per attributable gold equivalent ounce1 of $296 resulting in cash operating margins1 of $1,013 per ounce (Q2 2017 - $290 per ounce and $970 per ounce respectively);
•Cash flows from operating activities, excluding changes in non-cash working capital1, of $12.3 million (Q2 2017 – $10.1 million);
•Net income of $0.7 million (Q2 2017 – net loss of $1.9 million);
•On June 26, 2018, the Company announced the results of the Hod Maden Pre-Feasibility Study. The PFS projects a pre-tax NPV (5% discount rate) of $1.4 billion and an IRR of 60%2. The study also outlines total production of more than 2.6 million gold equivalent ounces over an 11 year mine life and it is expected that gold will be produced at an all-in sustaining cost, on a co-product basis1, of less than $400 per ounce;
•Sandstorm acquired 8 royalties on exploration-stage projects in Burkina Faso, Egypt and Côte d’Ivoire. The Company now has 188 royalties in its portfolio.

OUTLOOK
Based on the Company’s existing royalties, attributable gold equivalent ounces sold is forecasted to be between 54,000 – 60,000 for 2018 and between 63,000 – 73,000 ounces in 2019. The Company is forecasting attributable gold equivalent production of 140,000 ounces in 2023.

FINANCIAL RESULTS
Sandstorm’s revenue during the second quarter of 2018 was $2.9 million higher than the comparable period in 2017, driven by a 13% increase in the number of attributable gold equivalent ounces sold and a 4% increase in the average realized selling price per ounce of gold.

Net income was higher when compared to the same period in 2017 partly due to certain non-recurring items that were recognized during the second quarter of 2017 including a $4.5 million non-cash impairment charge. The increase in net income was partially offset by a $1.1 million foreign exchange loss during the period.

TREAMS & ROYALTIES: Q2 UPDATES
Of the gold equivalent ounces sold by Sandstorm, approximately 28% were attributable to mines located in Canada, 24% from the rest of North America and 48% from South America and other countries.
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Three months ended June 30, 2018

Revenue (in $000s)
Gold Equivalent Ounces

Canada $5,385 4,131
North America excl. Canada $4,463 3,372
South America & Other $9,085 6,962
Total $18,933 14,465

Canada

Streams and royalties on Canadian mines contributed 13% less gold equivalent ounces sold to Sandstorm when compared to the second quarter of 2017. The change is primarily attributable to a decrease in gold equivalent ounces sold attributable to the Ming mine in the Newfoundland and the Bachelor Lake mine in Quebec, offset by an increase in royalty revenue from the Bracemac-McLeod mine in Quebec.

Black Fox Stream

McEwen Mining Inc. (“McEwen”) recently reported exploration results from their ongoing $15 million exploration program at the Black Fox Complex in Ontario, Canada. The goals of McEwen’s 2018 exploration program are to grow known deposits and make new discoveries to contribute to near-term gold production.

A significant portion of the drilling at Black Fox during the second quarter of 2018 focused on near mine exploration that could be brought into production quickly. A revised Black Fox Mineral Resource estimate was completed, which eliminated the Inferred resource category and increased the Indicated ounces and grade.

For more information refer to www.mcewenmining.com and see the press release dated July 25, 2018.

Sandstorm has a gold stream agreement to purchase 8% of the gold produced from Black Fox at an ongoing cost of US$540 per ounce.



North America Excluding Canada

When compared to the second quarter of 2017, gold equivalent ounces coming from North America, excluding Canada, increased by 8%. The change was driven by an increase in gold equivalent ounces sold attributable to the Santa Elena mine in Mexico.



South America & Other

Operations in South America and other countries contributed an additional 2,097 gold equivalent ounces sold when compared to the second quarter of 2017, representing a 43% increase. The newly acquired Houndé royalty contributed 1,321 of those ounces.

Cerro Moro Silver Stream

At Cerro Moro, Yamana Gold Inc. (“Yamana”) recently announced that their current exploration program is progressing towards increasing life of mine
reserves and resources. Yamana expects that the successful drilling on the newly discovered Veronica vein, the Escondida Far East and Escondida Far West veins will lead to a measured and indicated mineral resource that will replace mining depletion from 2018 production.

For more information refer to www.yamana.com and see the press release dated May 2, 2018.

Beginning in 2019, Sandstorm has a silver stream agreement to purchase an amount of silver from Cerro Moro equal to 20% of the silver produced, up to a maximum of 1.2 million ounces of silver annually, until Yamana has delivered to Sandstorm 7.0 million ounces of silver, then 9.0% of the silver produced thereafter for the life of the mine. Sandstorm will make ongoing payments for each ounce of silver received, equal to 30% of the spot price per ounce of silver.

Aurizona Royalty

Equinox Gold Corp. (“Equinox Gold”) announced that overall project construction is 60% complete at the Aurizona gold mine in Brazil. Pre-production mining activities commenced in mid-April and the mining contractor has removed more than 986,000 tonnes of waste. In mid-July Equinox Gold commenced stockpiling of ore to prepare for commissioning of the plant. Construction is proceeding on schedule to pour gold by the end of 2018.

For more information refer to www.equinoxgold.com and see the press release dated July 24, 2018.

Sandstorm has a 3% - 5% sliding scale NSR royalty on the Aurizona project. At gold prices less than or equal to US$1,500 per ounce, the royalty is a 3% NSR. In addition, Sandstorm holds a 2% NSR royalty on the Aurizona Greenfields property, a 190,073 hectare package of exploration ground adjacent to the Aurizona project.


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