Sandstorm Gold Ltd. (“Sandstorm Gold Royalties”, “Sandstorm” or the “Company”) (NYSE: SAND, TSX: SSL) has released its results for the first quarter ended March 31, 2020 (all figures in U.S. dollars).

FIRST QUARTER HIGHLIGHTS
•Attributable gold equivalent ounces sold1 of 13,393 ounces (Q1 2019 — 14,071 ounces);
•Revenue of $21.3 million (Q1 2019 — $18.2 million);
•Cash flows from operating activities, excluding changes in non-cash working capital1 of $14.4 million (Q1 2019 — $12.8 million);
•Average cash cost per attributable gold equivalent ounce1 of $314 resulting in cash operating margins1 of $1,279 per ounce (Q1 2019: $241 per ounce and $1,050 per ounce respectively);
•Net loss of $10.3 million (Q1 2019 — net income of $2.5 million);
•Normal Course Issuer Bid: Under Sandstorm’s normal course issuer bid, the Company purchased and cancelled approximately 4.6 million shares during the first quarter of 2020 for total consideration of $23.5 million;
•Early Warrant Exercise Incentive Program: In April 2020, the Company completed the early warrant exercise incentive program whereby 15 million outstanding and unlisted share purchase warrants were exercised at a price of $3.35 per warrant, providing proceeds of $50.25 million.

OUTLOOK
Due to the unknown long-term effects of the current global health pandemic, Sandstorm withdrew the Company’s 2020 production guidance. Based on the Company’s existing royalties, attributable gold equivalent ounces sold are forecasted to be approximately 125,000 ounces in 2024.

FINANCIAL RESULTS
Sandstorm’s revenue during the first quarter of 2020 was $21.3 million compared with $18.2 million for the comparable period in 2019. The increase is largely due to a 23% increase in the average realized selling price of gold, partially offset by a 5% decrease in the attributable gold equivalent ounces sold.

Net income was lower when compared to the same period in 2020 primarily due to certain non-recurring items that were recognized during the first quarter of 2020, including an $8.9 million non-cash impairment charge. The impairment charge was primarily related to the Diavik royalty as a result of adverse diamond market conditions, partly exacerbated by the COVID-19 pandemic. Other factors impacting the decrease in net income include a $5.9 million loss recognized on the revaluation of the Company’s investments, largely driven by the change in fair value of the Americas Gold and Silver Corp. convertible debenture.

STREAMS & ROYALTIES
Of the gold equivalent ounces sold by Sandstorm during the first quarter of 2020, approximately 16% were attributable to mines located in Canada, 19% from the rest of North America, 50% from South America and 15% from other countries.

Three Months Ended March 31, 2020
Revenu (in millions)
Gold Equivalent Ounces
Canada $3.4 2,139
North America excl. Canada $4.0 2,518
South America $10.7 6,741
Other $3.2 1,995
Total $21.3 13,393

Canada
Streams and royalties on Canadian mines contributed 62% fewer gold equivalent ounces to Sandstorm when compared to the first quarter of 2019. The change is primarily due to a decrease in royalty revenue from the Diavik mine in the Northwest Territories and a decrease in gold equivalent ounces sold from the Bachelor Lake mine in Québec. The decrease was partially offset by an increase in gold equivalent ounces sold from the Black Fox mine in Ontario.

North America Excluding Canada
The gold equivalent ounces sold from operations located within North America, but outside of Canada, increased by 34% compared to the first quarter in 2019. The changes were driven by an increase in gold equivalent ounces sold from the Santa Elena mine in Mexico and an increase in royalty revenue from the San Andres mine in Honduras.

SANTA ELENA STREAM
In April 2020, First Majestic Silver Corp. announced that it had temporarily suspended operations at the Santa Elena mine in accordance with Mexico’s Ministry of Health’s Decree to mitigate the spread and transmission of COVID-19.

For more information, refer to www.firstmajestic.com and see the press release dated April 3, 2020.

South America
Operations in South America contributed 144% more gold equivalent ounces when compared to the first quarter of 2019. The change is primarily due to the addition of gold equivalent ounces from the Cerro Moro mine in Argentina, royalty revenue from the Aurizona mine in Brazil, and royalty revenue from the Fruta del Norte mine in Ecuador.

FRUTA DEL NORTE ROYALTY
In February 2020, Lundin Gold announced that commercial production had been achieved at the Fruta del Norte mine. However, as a result of the recent pandemic, Lundin Gold temporarily suspended operations at the mine and placed it under care and maintenance in March 2020. While under suspension, Lundin Gold has indicated that it will maintain a workforce at the mine to minimize the impacts of the temporary shutdown.

For more information refer to www.lundingold.com and see the press releases dated February 20, 2020 and March 22, 2020.

Other
Streams and royalties on mines in other countries contributed 47% less gold equivalent ounces sold when compared to the first quarter of 2019. The change is primarily due to a decrease in gold equivalent ounces sold from the Karma mine in Burkina Faso, as approximately 417 gold ounces expected to be delivered in March 2020 were received in the first week of April 2020.

INTENTION TO INITIATE AN AT-THE-MARKET EQUITY PROGRAM

Sandstorm intends to initiate an at-the-market equity program (the "ATM Program") that would allow the Company to issue up to $140 million worth of common shares from treasury ("Common Shares") to the public from time to time at the prevailing market price or other prices through the Toronto Stock Exchange, the New York Stock Exchange or any other marketplace on which the Common Shares are listed, quoted or otherwise trade. The volume and timing of distributions under the ATM Program, if any, will be determined at the Company's sole discretion, subject to applicable regulatory limitations.

Sandstorm does not currently have any plans to use the ATM Program and the ATM Program will be used when Sandstorm requires capital related to an acquisition. The Company will not be permitted to purchase Common Shares under the Company’s Normal Course Issuer Bid at any time that it is distributing Common Shares under the ATM Program.

The ATM Program remains subject to negotiation of definitive agreements with the Canadian and U.S. agents, filing of a prospectus supplement (the “Prospectus Supplement”) to the Company’s base shelf prospectus dated April 20, 2020 (the “Shelf Prospectus”) filed with Canadian securities regulators and the filing of a prospectus supplement (the “U.S. Prospectus Supplement”) to the Company’s U.S. base prospectus dated April 20, 2020 (the “U.S. Base Prospectus”) to be included in its registration statement on Form F-10, as amended, (the “Registration Statement”) filed with the U.S. Securities and Exchange Commission (the “SEC”), and receipt of all regulatory approvals.

Details of the ATM Program will be provided in the Prospectus Supplement and the U.S. Prospectus Supplement. If there are sales of Common Shares through the ATM Program, they will only be made pursuant to the terms of an equity distribution agreement.

The Prospectus Supplement, when available, and Shelf Prospectus may be downloaded from SEDAR at www.sedar.com, and the U.S. Prospectus Supplement, when available, and the U.S. Base Prospectus and the Registration Statement are accessible via EDGAR on the SEC website at www.sec.gov. Alternatively, the Company will arrange to send you these documents if you request them by contacting, Sandstorm Gold Ltd., Suite 1400, 400 Burrard Street, Vancouver, British Columbia, Canada V6C 3A6 Attn: Investor Relations, by e-mail at info@sandstormgold.com or by phone at (778) 945-0972.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

SANDSTORM JOINS UNITED NATIONS GLOBAL COMPACT

Sandstorm is pleased to announce that it joined the United Nations (“UN”) Global Compact during the first quarter of 2020. Launched in 2000, the UN Global Compact is the largest corporate sustainability initiative in the world, with more than 9,500 companies and 3,000 non-business signatories based in over 160 countries.

As a participant, Sandstorm has committed to voluntarily aligning its operations and strategy with the ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption, and to take actions that support broader UN goals, including the Sustainable Development Goals.

The UN Global Compact provides members with a principle-based framework, best practices, resources and networking events with a goal to strengthen corporate sustainability practices for the betterment of society.

WEBCAST & CONFERENCE CALL DETAILS

A conference call will be held on Friday, May 8, 2020 starting at 8:30am PDT to further discuss the first quarter results. To participate in the conference call, use the following dial-in numbers and conference ID, or join the webcast using the link below:

International: (+1) 778-560-2839
North American Toll-Free: (+1) 833-968-2150
Conference ID: 7280709
Webcast URL: https://bit.ly/3d2ir0K