Vancouver, British Columbia | August 13, 2014
Sandstorm Gold Ltd. (“Sandstorm” or the “Company”) (NYSE MKT: SAND, TSX: SSL) has released its unaudited results for the second quarter ended June 30, 2014 (all figures in U.S. dollars).

— SECOND QUARTER HIGHLIGHTS
•Strong balance sheet with over $110 million in cash at June 30, 2014.
•Revenue of $13.2 million.
•Attributable Gold Equivalent ounces sold1 of 10,149 ounces.
•Average cash cost per ounce1 of $310 resulting in cash operating margins1 of $986 per ounce.
•Operating cash flow of $9.4 million.
•Net income of $3.0 million.
•Remitted a $10 million loan to Luna Gold Corp. (“Luna”) in accordance with its previously announced commitment to issue a non-revolving loan facility to Luna.
•Acquired 100% of the issued and outstanding shares of Sandstorm Metals & Energy Ltd. (“Sandstorm Metals”), allowing Sandstorm management to focus on gold transactions going forward.

“The second quarter results demonstrated the value of diversification in our portfolio. Although a few of our streaming partners had challenging quarters and posted lower than expected production numbers, Sandstorm still recorded strong operating cash flow and earnings,” said Sandstorm President & CEO, Nolan Watson. Watson added, “We are confident reiterating this year’s attributable gold equivalent production guidance of 40,000 to 50,000 ounces of gold.”

— FINANCIAL RESULTS

Revenue and Gold Sales

Revenue was $13.2 million in the second quarter of 2014, generated from the sale of 10,149 attributable gold equivalent ounces. Revenue declined slightly compared with the comparable period in 2013, largely due to an 8% decrease in the average realized selling price of gold which was partially offset by an 8% increase in the number of attributable gold equivalent ounces sold.

Costs and Expenses

The average cash cost per attributable ounce was $310 during the period, resulting in a cash operating margin of $986 per ounce. The lower cash cost per attributable ounce decreased by 6% compared to the second quarter of 2013, due to an increase in the percentage of revenue coming from royalties as the Company continues to grow and diversify its asset base. The Company reduced administrative expenses by $1.7 million compared with the comparable period in 2013.

Earnings and Operating Cash Flow

For the three months ended June 30, 2014, net income and cash flow from operations were $3.0 million and $9.4 million, respectively, compared with a net loss and cash flow from operations of $15.2 million and $8.5 million for the comparable period in 2013. The change is attributable to a combination of factors including a $1.7 million decrease in administration expenses, a one-time gain of $2.6 million related to the acquisition of Sandstorm Metals, a number of non-recurring items and a non-cash charge of $1.2 million relating to the Company’s Bracemac-McLeod royalty.

Balance Sheet

Total assets increased by $76.3 million from December 31, 2013 to June 30, 2014 primarily resulting from the assets acquired from the Sandstorm Metals business combination, operating cash flows and the exercise of warrants. The increase was partially offset by depletion expense and by a non-cash impairment charge on the Bracemac-McLeod royalty. At the end of the second quarter, the Company had $111.4 million in cash and cash equivalents and working capital of $109.4 million. In addition, the Company has $100.0 million in available capital under its undrawn revolving bank debt facility.

— STREAMS AND ROYALTIES
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— OUTLOOK
Based on the existing gold streams and royalties, attributable gold equivalent production for 2014 is forecasted to be between 40,000 to 50,000 attributable gold equivalent ounces, increasing to approximately 60,000 attributable gold equivalent ounces per annum by 2017. This growth is largely driven by the Company’s portfolio of gold streams with mines, most of which are either currently producing or expected to commence production by 2015.


Second Quarter 2013 (Last Year)Highlights
•Revenue of $13.4 million.
•Gold sales of 7,473 ounces (additional 1,800 ounces deferred to third quarter due to timing and delay of shipments).
•Average cash cost per ounce1 of $417 resulting in cash operating margins1 of $999 per ounce.
•Operating cash flow of $8.5 million.
•Strong balance sheet with over $94 million in cash.
•Acquired a 1.0% net smelter returns royalty (“NSR”) on the Paul Isnard gold project located in French Guiana and owned by Columbus Gold Corporation for an upfront payment of $5.0 million.
•Acquired a 1.2% precious metal NSR on the Prairie Creek project located in the Northwest Territories, Canada from Canadian Zinc Corporation for $3.2 million (via a back-to-back agreement with Sandstorm Metals & Energy Ltd.).
•Net loss of $17.1 million due to a non-cash impairment charge of $16.0 million on goodwill arising from the Premier Royalty Inc. (“Premier Royalty”) business combination.

And
First Quarter 2014 Highlights
•Strong balance sheet with over $110 million in cash.
•Revenue of $15.3 million.
•Attributable Gold Equivalent ounces sold1 of 11,966 ounces, which includes 1,849 of attributable gold ounces from our portfolio of royalties.
•Average cash cost per ounce1 of $355 resulting in cash operating margins1 of $923 per ounce.
•Operating cash flow of $9.2 million (excluding changes in non-cash working capital).
•Net income of $3.8 million.
•Exercised option to purchase an amount equal to 20% of the gold produced from the Santa Elena underground mine. In consideration and as complemented in the original purchase agreement, Sandstorm agreed to make an upfront payment of $10 million which represents approximately 20% of the upfront capital expenditures relating to gold production and will continue to make ongoing per ounce payments equal to $350 until 50,000 ounces of gold have been delivered to Sandstorm (inclusive of ounces already received from open-pit production), at which time the ongoing per ounce payments will increase to $450.