Mr. Nolan Watson reports

SANDSTORM GOLD ROYALTIES PROVIDES UPDATES ON KEY DEVELOPMENT PROJECTS

Sandstorm Gold Ltd. has provided updates on certain development assets, including SSR Mining Inc.'s acquisition of an operating interest in the Hod Maden gold-copper project.

SSR Mining to acquire operating interest in Hod Maden

SSR Mining, a leading diversified gold company, has reached an agreement with Lidya Madencilik to acquire an up-to-40-per-cent interest in the Hod Maden gold-copper project in Turkey and assume operational control of the asset upon closing of the transaction. SSR Mining will pay cash consideration of $270-million (U.S.) as follows:

• $120-million (U.S.) in cash paid on closing for a 10-per-cent interest in Hod Maden;
• $150-million (U.S.) in earn-in structured cash milestone payments, linked to construction and commercial production milestones at Hod Maden, to acquire an additional 30-per-cent interest in the project.

In addition, SSR Mining will pay $84-million (U.S.) to Lidya in the form of a contingent mineral reserve and resource payment upon discovery of an additional 500,000 ounces of gold equivalent reserves (1) at Hod Maden beyond those currently identified as mineral reserves and mineral resources. Assuming the terms of the earn-in milestone payments of the transaction are fulfilled, SSR Mining will hold a 40-per-cent operating interest in Hod Maden, with the remaining passive ownership held by Lidya (30 per cent) and Horizon Copper Corp. (30 per cent). Sandstorm maintains a 2.0-per-cent net smelter return (NSR) royalty on 100 per cent of Hod Maden and a gold stream on Horizon Copper's interest that entitles the company to purchase 20 per cent of the gold produced at Hod Maden on a 100-per-cent basis (2).

"We are very pleased to welcome a seasoned operator like SSR Mining to the development team at Hod Maden," said Nolan Watson, Sandstorm's president and chief executive officer. "We believe the addition of SSR Mining will complement the work that Lidya has undertaken over the last several years, working meticulously to derisk Hod Maden through permitting and securing regulatory approvals. SSR Mining has a successful, long-standing partnership with Lidya at the Copler mine in Turkey. Copler has been in production since 2010, and SSR Mining continues to daylight exploration upside at the asset and extend its mine life. We are excited to see this proven partnership add similar value to Hod Maden."

For more information regarding the details of the transaction, please see SSR Mining's press release dated May 8, 2023, available on its website.

Development and production outlook

Upon the closing of the transaction, SSR Mining will continue early works construction activities at Hod Maden with its development team mobilizing to site immediately. Early works activities for 2023 are to focus on site access and earthworks at an expected cost of approximately $30-million (U.S.) (on a 100-per-cent basis). SSR Mining will assume the project finance process that is currently under way. SSR Mining expects to advance Hod Maden to a full construction decision in 2024 following a process to maximize project readiness and synergies. SSR Mining anticipates commercial production to commence in 2027.

Reflecting the indicative development schedule provided by SSR Mining, Sandstorm's annual portfolio production is expected to reach approximately 125,000 to 130,000 gold equivalent ounces within the next five years, with sustainable average annual production of approximately 110,000 gold equivalent ounces over the next 15 years.

Ivanhoe Mines Ltd. looks to optimize Platreef phase 2 expansion

Ivanhoe provided an update on the Platreef development project in South Africa. Surface construction activities are under way while lateral underground mine development is progressing well. Construction for Platreef's phase 1 concentrator has commenced, with the first production on schedule for third quarter 2024. Construction of Platreef's first solar power plant commenced in third quarter 2022 with commissioning expected in 2023. The solar-generated power from the plant, which is expected to have a rated capacity of five megawatts, will be used for mine development and construction activities.

Ivanhoe has initiated optimization work to identify value-accretive options for installing hoisting capacity in shaft 3. Shaft 3, which is currently under construction and was originally planned as a ventilation-only shaft, is now planned to be equipped for hoisting providing an alternative option to remove ore and waste from the underground mine. Ivanhoe expects this to derisk the development and ramp-up of the phase 1 mine, and may be used to accelerate the ramp-up of underground mining activities for phase 2, in advance of the completion of shaft 2, which is expected in 2027.

For more information, visit the Ivanhoe website, and see the press release dated March 13, 2023.

Sandstorm holds a gold stream on the Platreef project whereby Sandstorm is entitled to purchase 37.5 per cent of payable gold produced from Platreef until 131,250 gold ounces have been delivered, then 30 per cent of payable gold produced until an aggregate of 256,980 ounces are delivered and then 1.875 per cent thereafter. Sandstorm will make continuing cash payments of $100 (U.S.) per ounce of gold until 256,980 ounces have been delivered, and then 80 per cent of the spot price of gold for each ounce delivered thereafter.

Greenstone project on track for gold production in first half 2024

Equinox Gold Corp. reports that construction at the Greenstone project is approximately 73 per cent complete and remains on track to pour gold in the first half of 2024. At the end of first quarter 2023, 83 per cent of the total construction budget had been contracted, and 65 per cent of the total construction budget had been spent. All buildings have been enclosed, and construction is focused on mechanical, piping and electrical installations. Other completed construction items include the Ministry of Transportation patrol yard, the Goldfield Creek diversion and the permanent effluent water treatment plant. Equinox reported that the 14-kilometre natural gas pipeline is complete and ready for commissioning in the second quarter of 2023. Mining commenced ahead of schedule in the third quarter of 2022 and is operating 24-seven.

In March, Equinox announced up to $200-million in gold prepay and gold purchase and sale agreements, which provide the company additional cash liquidity as it continues to finance its 60-per-cent interest for construction of the Greenstone project.

For more information, see Equinox's first quarter 2023 report published May 2, 2023, and the press release dated May 2, 2023, both of which are available on the company's website.

Sandstorm holds a gold stream on the Greenstone project pursuant to an agreement with an affiliate of Orion Mine Finance, which holds a 40-per-cent interest in the Greenstone project in a joint venture with Equinox (holding the remaining 60 per cent). Under the terms of the gold stream, Sandstorm is entitled to purchase 2.375 per cent of the gold produced at the project (on a 100-per-cent basis) until 120,333 ounces are delivered and then 1.583 per cent of gold produced (on a 100-per-cent basis). Sandstorm will make continuing payments equal to 20 per cent of the spot price of gold per ounce plus an additional payment of up to $30 per ounce in environmental, social and governance contributions.

Notes

(1) Contingent payment relates to the discovery of 500,000 gold equivalent ounces of new resources at Hod Maden, which are subsequently upgraded to either proven or probable reserves. Conversion of existing measured, indicated and inferred resources as at the date of the transaction does not count toward the 500,000-gold-equivalent-ounce milestone.

(2) See Sandstorm's press release dated Feb. 17, 2022, for details regarding the Hod Maden gold stream.

Contact information

About Sandstorm Gold Ltd.

Sandstorm is a gold royalty company that provides upfront financing to gold mining companies that are looking for capital and, in return, receives the right to a percentage of the gold produced from a mine for the life of the mine. Sandstorm holds a portfolio of 250 royalties, of which 40 of the underlying mines are producing. Sandstorm plans to expand and diversify its low-cost production profile through the acquisition of additional gold royalties.

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