Sandstorm Gold Ltd. (“Sandstorm Gold Royalties”, “Sandstorm” or the “Company”) (NYSE: SAND, TSX: SSL) is pleased to provide an asset update of recent developments from the Company’s royalty portfolio.

LUNDIN GOLD ANNOUNCES 20% THROUGHPUT EXPANSION IN 2021

In the fourth quarter of 2020, Lundin Gold Inc. (“Lundin Gold”) announced a 20% expansion of the mine and mill throughput at Fruta del Norte. Lundin Gold plans to commence construction in the first quarter of 2021. The expansion is expected to be completed with minimal disruption to operations and funded by cash flow from operations.

Gold production guidance for Fruta del Norte in 2021 is estimated between 380,000 to 420,000 ounces. Mill production is estimated at an average of 3,500 tpd until the fourth quarter when production is planned to ramp up to 4,200 tpd following completion of the planned mill expansion. In 2021, Lundin Gold has planned an $11 million, 9,000 metre drilling program on two high priority exploration targets.

Due to changes in planned mining method, Lundin Gold has updated its estimates of Probable Mineral Reserves to 5.41 million ounces of gold (20.8 million tonnes at a grade of 8.1 grams per tonne (“g/t”) effective July 31, 2020, based on a cut-off grade of 3.8 g/t for transverse stopes and 4.4 g/t for drift and fill stopes). This represents an increase of 427,000 ounces compared to the 2019 year-end reconciliation of Probable Mineral Reserves presented in Lundin Gold's Annual Information Form, dated March 24, 2020.

The new life of mine plan, which is based on the updated Probable Mineral Reserves and throughput expansion, provides for a total of 4.8 million ounces of gold production over a 14 year mine. The annual average gold production for the first five years (2021-2025) is estimated at 390,000 ounces of gold.

For more information, visit the Lundin Gold website at www.lundingold.com and see the press release dated December 8, 2020. Sandstorm has a 0.9% NSR royalty on the precious metals produced from the Fruta del Norte project.

EQUINOX GOLD ANNOUNCES DRILL RESULTS FROM 2020 DRILLING PROGRAM AT AURIZONA

Equinox Gold Corp. (“Equinox Gold”) released drill results from the Piaba underground target and the Genipapo target at the Aurizona gold mine in Brazil.

Piaba Underground

In 2020, a total of 23,916 metres were drilled at the Piaba underground deposit. Drilling tested depths up to one kilometre below surface and results to date have shown that the deposit remains open at depth. Highlighted drill results include:
•BRAZD696: 24.0 metres of 5.6 g/t gold, from 314.0 metres;
•BRAZD698: 1.0 metres of 96.8 g/t gold, from 282.0 metres;
•BRAZD708: 11.0 metres of 4.2 g/t gold, from 305.0 metres and 11.0 metres of 6.15 g/t gold, from 363.0 metres;
•BRAZD737: 37.0 metres of 4.35 g/t gold, from 452.0 metres.

Genipapo

The Genipapo target is located approximately one kilometre from the existing Piaba open-pit mine and is the most advanced of three targets that potentially could host a series of smaller, near-surface deposits. Drilling completed in 2020 continues to demonstrate the potential to develop Genipapo as an open-pit feed for the Piaba mill. Highlighted drill results include:
•P630: 25.0 metres of 1.4 g/t gold, from 3.0 metres;
•P631: 19.0 metres of 3.15 g/t gold, from 40.0 metres;
•P650: 17.0 metres of 1.6 g/t gold, from 21.0 metres.

Equinox Gold has a $7.3 million exploration program planned for Aurizona in 2021, including 49,000 metres of drilling. A Pre-Feasibility study is underway to assess the potential to operate an underground mine concurrent with the existing open-pit mine, with completion of the study targeted for late 2021.

True widths are estimated to be 60-90% of the reported lengths. For more information and complete drill results, visit the Equinox Gold website at www.equinoxgold.com and see the press release dated January 18, 2021. Sandstorm has a 3% - 5% sliding scale NSR royalty on the Aurizona project. At gold prices between $1,500 and $2,000 per ounce, the royalty is a 4% NSR.

ENDEAVOUR RELEASES UPDATED MINERAL RESOURCE AT HOUNDÉ MINE

Endeavour Mining Corporation (“Endeavour”) recently announced an update to the Houndé mine plan to include the newly discovered Kari Pump and Kari West deposits. The Houndé mine is now expected to produce approximately 2.3 million ounces of gold through 2031, with average production of 250,000 ounces for the 5-year period starting in 2021 and 202,000 ounces of gold for the following 5-year period starting in 2026. Sandstorm’s royalty covers a portion of the Kari area.

Endeavour expects the conversion of existing Mineral Resources into Mineral Reserves and near-mine exploration will continue to add further ounces and extend the mine life.

For more information, visit the Endeavour website at www.endeavourmining.com and see the press release dated November 12, 2020. Sandstorm has a 2.0% NSR royalty on a portion of the Houndé mine.

RESUMPTION OF FULL PRODUCTION RATES AT CHAPADA IN DECEMBER

Lundin Mining Corporation (“Lundin Mining”) announced that the Chapada mine returned to full production rates on December 20, 2020 after the processing activities were interrupted in late September due to damaged SAG and ball mill motors following a power outage.

For more information, visit the Lundin Mining website at www.lundinmining.com and see the press release dated December 21, 2020.

Sandstorm has a copper stream agreement to purchase 4.2% of the copper produced at Chapada up to a maximum of 3.9 million pounds annually. When 39 million pounds of copper has been delivered to Sandstorm, the copper stream will reduce to 3.0%. Once 50 million pounds of copper have been delivered to Sandstorm on a cumulative basis, the stream will reduce to 1.5% of the copper produced for the life of the mine. Sandstorm will make ongoing payments for each pound of copper purchased equal to 30% of the spot price of copper.

ERDENE EXPANDS GOLD MINERALIZATION IN MULTIPLE ZONES ADJACENT TO THE BAYAN KHUNDII DEPOSIT

Erdene Resource Development Corporation (“Erdene”) reported results from an ongoing 18,000 metre drill program. Results from the recent drilling include multiple high-grade gold intersections in areas adjacent to the Bayan Khundii deposit and at the Dark Horse deposit, located 3.5 kilometres north of the Bayan Khundii deposit.

Highlight drill results include:

Striker West (200 metres west of the Bayan Khundii pit)
•BKD-334: 28.0 metres of 2.5 g/t gold, from 122.0 metres;
•BKD-338: 38.0 metres of 1.8 g/t gold, from 108.0 metres;
•BKD-339: 54.0 metres of 1.2 g/t gold, from 129.0 metres.

Dark Horse Deposit
•AAD-58: 45.0 metres of 6.0 g/t gold, from 10.0 metres;
•AAD-57: 48.0 metres of 1.2 g/t gold, from 194.0 metres;
•AAD-51: 3.0 metres of 5.6 g/t gold, from 138.0 metres.

Reporting intervals are apparent thicknesses. For more information and for complete drill results visit the Erdene website at www.erdene.com and see the press releases dates November 17, 2020 and January 6, 2021. Sandstorm has a 1.0% NSR royalty on the Bayan Khundii project.

GOWEST GOLD ANNOUNCES PROCESSING OF ORE FROM BRADSHAW BULK SAMPLE PROGRAM

Gowest Gold Ltd. (“Gowest”) announced that Northern Sun’s Redstone Mill began processing the first gold-bearing mixed development ore from the Bradshaw project on December 1, 2020. This ore was collected and stockpiled on-site from Gowest’s ongoing bulk sample program at the Bradshaw project. Gowest is reviewing financing opportunities to raise sufficient funds to complete the bulk sample and advance Bradshaw towards commercial production.

For more information, visit the Gowest website at www.gowestgold.com and see the press release dated December 9, 2020. Sandstorm has a 1.0% GSR royalty on the Bradshaw project.

BONTERRA COMPLETES C$15 MILLION FINANCING

Bonterra Resources Inc. (“Bonterra”) announced in December they closed an equity financing of C$15 million. The net proceeds of the financing will be used to fund drilling campaigns at the Moroy, Gladiator and Barry projects and to prepare a Preliminary Economic Assessment (“PEA”) on these projects. The PEA is expected to be completed in the fall of 2021.

For more information, visit the Bonterra website at www.btrgold.com and see the press release dated December 15, 2020. Sandstorm has a 3.9%–4.9% NSR on the Moroy/Bachelor Lake project, a 3.9%–4.9% NSR on the Barry project and a 1.0% NSR on a portion of the Gladiator project.

QP
Qualified
Person
Keith Laskowski (MSc), Sandstorm’s Vice President, Technical Services is a Qualified Professional (#01221QP) of the Mining and Metallurgical Society of America and a Qualified Person as defined by Canadian National Instrument 43-101. He has reviewed and approved the technical information in this press release.

CONTACT INFORMATION

For more information about Sandstorm Gold Royalties, please visit our website at www.sandstormgold.com or email us at info@sandstormgold.com