An anonymous director reports

SANDSTORM GOLD ROYALTIES RESPONDS TO INDEX DELETION

Sandstorm Gold Ltd. is issuing a clarifying statement in response to the ICE Data Indices LLC's recent rebalancing announcement for the NYSE Arca Gold Miners Index. On Friday, June 9, 2023, the index manager announced that Sandstorm would be deleted from the index, effective for the rebalancing period ending June 20, 2023.

Sandstorm has no information on the rationale for the deletion and understands that the index manager does not release details on how its assessments are made. Based on the index manager's published index criteria below, it is unclear to the company why it would not meet the inclusion requirements, but can provide no assurance if the index manager will reconsider its decision and retain the company to the index.

According to the index manager's index rules, the GDM is a rules-based index and includes constituents that meet the following criteria.

Market capitalization

Index manager's index rules: Companies with market capitalization greater than $750-million (U.S.) (not adjusted for free float). For companies already in the index, the market capitalization requirement is $450-million (U.S.).

• As at June 9, 2023, Sandstorm's market capitalization was $1.55-billion (U.S.).

Average daily volume

Index manager's index rules: Companies with average daily trading volume of at least 50,000 shares over the past three months, or 30,000 shares for companies already included in the index.

• During the three months ended March 31, 2023, Sandstorm's average daily trading volume on the New York Stock Exchange and the Toronto Stock Exchange combined was approximately three million shares.

Average daily traded value

Index manager's index rules: Companies that have an average daily trading volume of at least an average daily traded value of $1-million (U.S.) over the past three months are eligible, or $600,000 (U.S.) for companies already included in the index.

• During the three months ended March 31, 2023, Sandstorm's average daily traded value on the New York Stock Exchange and the Toronto Stock Exchange combined was approximately $17-million (U.S.).

Revenue mix

Index manager's index rules: The index includes companies that derive at least 50 per cent of their revenues from gold mining and related activities. There will be a 10-per-cent buffer built in so that companies already existing in the index will only be removed from the index in the next review if their gold mining revenues fall below the 40-per-cent level.

The index maintains exposure to companies with significant revenue exposure to silver in addition to gold, defined as either: (i) companies with revenue from silver that is greater than 50 per cent; or (ii) companies with greater silver revenues than gold revenues with combined gold and silver revenues of at least 50 per cent. The index manager will ensure, solely through the company selections in the index rebalances, that the percentage of the index weight that will consist of these silver-tilted companies will not exceed 20 per cent.

• In the fiscal year ended Dec. 31, 2022, 69 per cent of the company's royalty revenues and sales came from precious metals, with over 49 per cent deriving from gold. During the three months ended March 31, 2023, gold and silver accounted for 60 per cent of the company's royalty revenues and sales, with 43 per cent deriving from gold. Upon closing of the sale of the Antamina royalty to Horizon Copper Corp., the company expects the percentage of royalty revenues and sales from gold to increase from current levels. Please refer to the company's audited consolidated financial results as at and for the year ended Dec. 31, 2022, and the unaudited condensed consolidated interim financial statements as at March 31, 2023, and for the three months ended March 31, 2023, and the related management's discussion and analyses for additional financial information.

About Sandstorm Gold Ltd.

Sandstorm is a precious-metal-focused royalty company that provides upfront financing to mining companies and receives the right to a percentage of production 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.

We seek Safe Harbor.