Sandstorm Gold Ltd. has learned that Metanor Resources Inc. has obtained the environment certificate of approval for commercial production at the Bachelor Lake mine. The certificate allows Metanor to process an initial 900,000 tonnes of gold ore from the Bachelor Lake underground mine site. The government authorization is accompanied by certain conditions, particularly with respect to the management of water, as well as the creation of an advisory committee involving the Cree community of the Waswanipi and Jamesian municipalities.

In accordance with Sandstorm's gold purchase agreement with Metanor, Sandstorm is entitled to purchase 20 per cent of the life-of-mine gold produced from Bachelor Lake at a per-ounce price of $500 (U.S.).

Sandstorm is also pleased to provide an update on the expansion at the Santa Elena mine, operated by SilverCrest Mines Inc. The Santa Elena expansion is on schedule, targeting a 100-per-cent increase in metal production commencing in 2014. The construction of a 3,000-tonne-per-day CCD processing plant is expected to begin in the fourth quarter of 2012, and long-lead-time equipment for the processing plant is currently being sourced. SilverCrest has driven a decline 470 metres underground with its main ramp and has budgeted for underground development to reach 1,500 metres by the end of 2012. On the exploration front, a shallow 13-hole in-pit drill program was completed in June, which confirmed the high-grade nature of mineralization at Santa Elena. Results show up to 6.2 grams per tonne gold and 102.7 g/t silver over 16 metres. A new Gemcom block model is being constructed to augment the Santa Elena life-of-mine plan. Surface drilling of the Santa Elena Main zone is also under way to further delineate underground resources for conversion to reserves, based on the expansion plan's prefeasibility study, which is anticipated by year-end. Eighteen proposed holes are currently being drilled.

In accordance with Sandstorm's gold purchase agreement with SilverCrest, Sandstorm is entitled to purchase 20 per cent of the life-of-mine gold produced from the open pit at Santa Elena at a per-ounce price of $350 (U.S.). Sandstorm has the right, but not the obligation, to purchase 20 per cent of the gold produced from underground at Santa Elena for an upfront payment that is equal to 20 per cent of the upfront capital expenditures made by SilverCrest, plus continuing per-ounce payments equal to $450 (U.S.).

Nolan Watson, Sandstorm's president and chief executive officer, commented: "With Metanor continuing toward production, and SilverCrest well on their way to a significant expansion, Sandstorm shareholders can look forward to increases in gold production in the coming years. I want to congratulate both teams on their excellent progress to date."

Pascal Hamelin, PEng, vice-president of operations, is the qualified person under NI 43-101 responsible for reviewing and approving the technical information contained in this news release in regard to Metanor and Bachelor Lake.

N. Eric Fier, CPG, PEng, chief operating officer for SilverCrest, is the qualified person under NI 43-101 responsible for reviewing and approving the technical information contained in this news release with regard to SilverCrest and Santa Elena.

We seek Safe Harbor.

Lundin says hold Sandstorm Gold.