Mr. Erfan Kazemi reports

SANDSTORM GOLD ANNOUNCES RECORD REVENUE IN Q1, 2013

Sandstorm Gold Ltd. is releasing its unaudited results for the first quarter ended March 31, 2013 (all figures in U.S. dollars).

First quarter highlights:

• Record revenue of $15.4-million;
• Gold sales of 8,581 ounces;
• Average cash cost per ounce of $427, resulting in cash operating margins of $1,208 per ounce;
• Operating cash flow of $7.0-million;
• Acquired 46.7 million common shares and 7.0 million warrants of Premier Royalty Inc., representing approximately 59.9 per cent of the currently issued and outstanding shares;
• Credit facility upsize to $100-million;
• Entered into a streaming agreement with Entree Gold Inc. to purchase 25.7 per cent and 33.8 per cent of Entree's 20-per-cent share of the gold and silver produced from the Heruga and Hugo North Extension deposits, respectively;
• Net loss of $12.3-million due to a non-cash impairment charge of $14.0-million on goodwill arising from the Premier Royalty business combination.

"The strong revenue and gold sales during the first quarter point to stable mining operations underlying Sandstorm's streaming agreements," said president and chief executive officer Nolan Watson. "Sandstorm is on track to meet our annual production guidance and we are looking forward to a number of potential catalysts over the next year. These catalysts include expansion studies at Aurizona and Santa Elena, initial production at Serra Pelada and Bracemac-McLeod, continued exploration at a number of mines, and potential announcements related to new streaming agreements."

Outlook

Sandstorm's forecasted attributable production for 2013 is 33,000 to 40,000 gold equivalent ounces coming from seven active mines. Attributable production is expected to increase to approximately 70,000 gold equivalent ounces by 2016, from the company's current portfolio of gold streams.

Sandstorm's management discussion and analysis (MD&A), and financial statements, for the first quarter results, will be accessible on the company's website and on SEDAR. The company has also completed a Form 6-K filing with the SEC that will be accessible on EDGAR. Shareholders can request a hard copy of the MD&A and financial statements by e-mail.

Webcast and conference call details

A conference call will be held on Thursday, May 9, 2013, starting at 8:30 a.m. PDT, to further discuss the first quarter results. To participate in the conference call use the following dial-in numbers:

Local/international:  647-788-4916

North American toll-free:  877-214-4966

It is recommended that participants dial in five minutes prior to the commencement of the conference call. The webcast will also be available on the Sandstorm website.

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