Sandstorm Metals & Energy Ltd. (“Sandstorm Metals” or the “Company”) (TSX-V: SND) is pleased to announce that it has entered into a palladium purchase agreement with Colossus Minerals Inc. (“Colossus”) (TSX: CSI), via a back-to-back agreement with Sandstorm Gold Ltd. (“Sandstorm Gold”), to purchase an amount of palladium from the Serra Pelada Mine (“Serra Pelada”) located in Para, Brazil.

Sandstorm Metals has agreed to purchase an amount equal to 35% of the palladium produced from Serra Pelada (the “Palladium Purchase Agreement”). Pursuant to this back-to-back agreement, Sandstorm Metals will pay an upfront cash deposit of US$15 million (the “Upfront Deposit”) to Sandstorm Gold in cash or shares, within one year’s time. Sandstorm Metals will make ongoing per ounce payments equal to the lesser of US$100 per ounce of palladium and the prevailing market price of palladium.

“Serra Pelada is a fantastic project run by a first-class management team”, said President & CEO Nolan Watson. “We expect Serra Pelada to be producing in the near-term and the Palladium Stream will generate consistent cash flow to Sandstorm.”

Colossus will have the option, until April 1, 2015, to purchase in whole or in part, up to 50% of the obligation to purchase palladium under the Palladium Purchase Agreement by making a US$9.75 million payment, whereupon the percentage of palladium to be purchased by Sandstorm Metals shall be decreased from 35% to 17.5%.

As part of the transaction, Sandstorm Gold has agreed to purchase 1.5% of the gold and 35% of the platinum produced from Serra Pelada in exchange for paying a US$60 million deposit to Colossus (bringing the total deposit made by Sandstorm Gold to US$75 million). For more information, see the Sandstorm Gold press release at http://www.sandstormgold.com.

About Serra Pelada

Serra Pelada is a high-grade gold-platinum-palladium deposit located in the mineral and mining prolific Carajas region in Para State, northern Brazil. The existing infrastructure and accessibility to the site are excellent due to the close proximity of a number of major mines. During the 1980’s, Serra Pelada hosted the largest ever gold rush in Latin America with up to 80,000 artisanal miners producing 2 million ounces of gold, plus platinum and palladium, from a hand dug open pit. Colossus Minerals has been involved in the development of Serra Pelada since 2007 and is targeting initial production by the end of 2013. Serra Pelada is fully permitted and construction is underway. It is expected to be a high grade, low-cost polymetallic producer.

For more information on Serra Pelada, visit the Colossus Mineral’s website at http://www.colossusminerals.com/