Mr. Nolan Watson reports

SANDSTORM GOLD ROYALTIES RENEWS CREDIT FACILITY, AMENDS MERCEDES STREAM, PROVIDES CORPORATE AND DEVELOPMENT ASSET UPDATES

Sandstorm Gold Ltd. has provided various corporate and asset updates. All figures are in U.S. dollars unless otherwise stated.

"As we near the end of the third quarter, I'd like to provide shareholders an update on a number of items," said Nolan Watson, Sandstorm's president and chief executive officer. "I'm happy to announce that the company has renewed its $625-million revolving credit facility through September, 2027. Sandstorm partially drew down on its credit facility in 2022 as part of a significant investment in growth that has truly transformed the company's production profile. Our capital allocation strategy continues to focus on debt repayment using both free cash flow from producing streams and royalties as well as undergoing a process to monetize between $40-[million] and $100-million of non-core, non-cash-flowing assets from our portfolio by the end of 2024.

"With the transformative transactions in 2022, Sandstorm's future growth has already been purchased, with several assets in development; in many ways, Sandstorm's future is in construction. We're pleased to provide updates on two of these key development projects -- Greenstone and Platreef. Both projects are on track to be in production in 2024 and contribute meaningful growth to Sandstorm's portfolio. We continue to expect production to reach a peak of 125,000 gold equivalent ounces within the next five years.

"At Mercedes, we have agreed to restructure our investments with Bear Creek Mining Corp. for longer-term success with a revised capital structure and stream terms to deliver incremental value for all parties involved. While we are disappointed with Mercedes's operating results to date, we believe the lower near-term stream burden will facilitate reinvestment in the mine's long-term success, as highlighted by Bear Creek's recent drill results (included in appendix A), which demonstrate the potential of the asset.

"As we quickly approach the final leg of 2023, Sandstorm remains on track to achieve its production guidance for the year, which we anticipate will set another new record. We also look forward to further updates from our partners on key development assets and growth catalysts in 2024."

Bear Creek restructuring

Sandstorm and its subsidiaries have agreed to amend the existing gold and silver stream agreements with Bear Creek. In exchange for the stream amendments, Sandstorm will receive a 1-per-cent net smelter return (NSR) royalty on Bear Creek's wholly owned Corani project in Peru, one of the world's largest fully permitted silver deposits, and up to $10-million of Bear Creek common shares. Concurrently, Bear Creek will undertake an equity financing transaction of at least $7-million and Sandstorm has agreed to refinance certain other debt investments of Bear Creek that it holds.

Amended Mercedes stream terms

Effective Jan. 1, 2024, Sandstorm's gold stream with fixed deliveries, originally announced on Dec. 17, 2021, and amended on May 11, 2023, will be amended such that upon closing, Sandstorm will receive 275 gold ounces per month through April, 2028, and a 4.4-per-cent gold stream (the variable gold stream) thereafter. Sandstorm will pay Bear Creek 25 per cent of the spot price of gold for each gold ounce delivered by Bear Creek for both the fixed gold deliveries and the variable gold stream.

Effective Jan. 1, 2024, Sandstorm's silver stream, acquired through the Nomad acquisition in 2022, will be suspended through the fixed gold delivery period (October, 2023, to April, 2028); thereafter, Sandstorm will receive 100 per cent of the silver produced for the life of the mine. The silver stream will not include any minimum delivery requirements. Sandstorm will pay Bear Creek 25 per cent of the spot price of silver for each silver ounce delivered by Bear Creek.

Corani royalty

Upon satisfaction of closing conditions, Sandstorm will be granted a 1-per-cent NSR royalty on the Corani project located in Peru, which hosts one of the largest fully permitted silver-polymetallic deposits in the world. Bear Creek has received the approval and permits required to develop and construct the proposed Corani mine. Sandstorm's royalty will cover all existing mineral concessions held by Bear Creek at Corani. The royalty will be secured by a pledge of Bear Creek's shares in its Peruvian subsidiary.

Equity and debt restructuring terms

In connection with the stream amendments, Sandstorm has agreed to restructure its equity and debt investments with Bear Creek. Pursuant to the restructuring agreement, Sandstorm has agreed to refinance its $22.5-million convertible debenture and a $9-million secured loan that was acquired by Sandstorm into five-year convertible notes bearing interest at 7 per cent per annum and convertible into common shares of Bear Creek at a strike price of 73 cents per share, subject to TSX Venture Exchange approval.

The refinanced Sandstorm converts will both have a maturity date of Sept. 22, 2028, and will be secured by first-lien pledges on the assets of the Mercedes mine and Bear Creek's equity interests in the Mercedes mine and the Corani project. The refinanced Sandstorm converts will rank pari passu with Sandstorm's existing stream investments on all collateral.

In connection with the restructuring agreement, Sandstorm has agreed to make up to $8-million in additional credit available to Bear Creek under the Sandstorm secured loan prior to Aug. 31, 2024, subject to certain conditions. Any amounts drawn under this facility will be added to the principal amount of the refinanced Sandstorm converts.

The number of Bear Creek common shares issued to Sandstorm as consideration under the restructuring agreement will vary with the volume of shares issued by Bear Creek under the equity financing, such that Sandstorm will own no more than 19.9 per cent of Bear Creek's common shares on a postclosing basis (Sandstorm currently owns approximately 9.8 per cent of outstanding Bear Creek common shares). If the value of the Bear Creek common shares issued to Sandstorm as consideration under the restructuring agreement is less than $10-million, then Sandstorm has agreed to increase the principal amount of refinanced Sandstorm converts, such that the total value of the issued Bear Creek common shares and the incremental increase in principal amount equals $10-million.

Closing conditions

Closing of the restructuring agreement is subject to several conditions, including:

• Bear Creek completing an equity financing that raises gross proceeds of at least $7-million;
• Bear Creek shall have received written confirmation from Wheaton Precious Metals International that it has waived its right of first refusal for the Corani royalty;
• Customary stock exchange approvals for the restructuring of Bear Creek's existing obligations into the refinanced Sandstorm converts.

Production guidance and outlook restated

Based on the company's existing streams and royalties, attributable gold equivalent ounces for 2023 are forecasted to be between 90,000 and 100,000 ounces. The company's production forecast is expected to reach approximately 125,000 attributable gold equivalent ounces within the next five years, with a sustainable average annual production of approximately 110,000 attributable gold equivalent ounces over the next 15 years.

Credit facility renewal

Sandstorm has renewed its revolving credit agreement allowing the company to borrow up to $625-million. The amounts drawn on the revolving facility remain subject to interest at SOFR (secured overnight financing rate) plus 1.875 per cent to 3.5 per cent per annum, and the undrawn portion of the revolving facility remain subject to a standby fee of 0.422 per cent to 0.788 per cent per annum, both of which are dependent on the company's leverage ratio. The facility maintains its sustainability-linked incentive pricing terms that allow Sandstorm to reduce the borrowing from the interest rates described above as the company's performance targets are met. The syndicate of banks includes The Bank of Nova Scotia, Bank of Montreal, National Bank of Canada, Canadian Imperial Bank of Commerce and Royal Bank of Canada. The revolving loan has a term of four years, maturing in September, 2027.

Accelerating debt repayment through non-core asset sales

Delevering the company's balance sheet remains a top priority for Sandstorm's management. To expedite this repayment schedule, the company is undergoing a process to monetize between $40-million and $100-million of non-core, non-cash-flowing assets by the end of 2024, with proceeds from any sales directed to debt repayment. Further information will be relayed to the market if and when any such sale occurs.

Asset updates

Greenstone project approximately 90 per cent complete

Equinox Gold Corp. has provided an update on progress at the Greenstone project in Ontario, Canada. As at Aug. 25, 2023, the overall project was approximately 90 per cent complete and on track to pour gold in the first half of 2024. Detailed engineering is complete, while other construction milestones including procurement and construction are both 89 per cent complete. Earthworks, concrete and structural steel are all more than 95 per cent complete.

Greenstone is anticipated to be one of the largest gold mines in Canada, producing more than 400,000 ounces of gold annually for the first five years and more than five million ounces of gold over its initial 14-year mine life.

For more information, visit the Equinox Gold website and see the press release dated Aug. 1, 2023, and the Greenstone mine site tour presentation dated Sept. 7 and 8, 2023.

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. Under the terms of the gold stream, Sandstorm is entitled to purchase from Orion 2.375 per cent of the gold produced at the project (calculated on a 100-per-cent basis but payable from Orion's 40-per-cent interest) until 120,333 ounces are delivered, then 1.583 per cent of gold produced thereafter. Sandstorm will make continuing payments to Orion equal to 20 per cent of the spot price of gold per ounce plus an additional payment of up to $30 per ounce in ESG (environmental, social, governance) contributions.

Platreef on track for first production in Q3 2024

Ivanhoe Mines Ltd. has provided an update on the Platreef development project in South Africa. Surface construction activities and lateral underground mine development are progressing well. Underground development work has been focused on lateral development towards the high-grade Flatreef orebody, with more than 2,000 metres of lateral development completed to date.

Platreef's phase 1 concentrator is on schedule for first production in Q3 2024. Construction of Platreef's first solar power plant commenced in Q4 2022 with commissioning expected later this year. The solar power plant inverter and solar panels were recently delivered to site. The solar-generated power from the plant will be used for development activities and operations.

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 additional hoisting capacity 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 Mines website and see the press release dated Aug. 3, 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, 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.

Lundin Gold Inc. expands Fruta del Norte exploration program

Lundin Gold recently announced the expansion of Fruta del Norte's 2023 near-mine exploration program for the second time this year. Lundin Gold plans to increase its drilling program by 7,500 metres to a minimum of 30,000 metres to accelerate delineation of new targets and continue to explore other sections along Fruta del Norte's major structures. The original program was planned for 15,500 metres and was increased to 23,000 metres in May, 2023.

For more information, visit the Lundin Gold website and see the press release dated Sept. 7, 2023. Sandstorm has a 0.9-per-cent NSR royalty on the precious metals produced from the Fruta del Norte project.

Appendix A -- Mercedes recent drill results

Bear Creek announced drill results from its 2023 drilling program at Mercedes, which has been focused on improving operations and production in the current workings. The drill results support their belief that the source of mineralization in the Mercedes district may occur in the unexplored northern extensions. Highlighted drill results include:

Marianas deposit:

• UG-MR23-115: one metre grading 47.9 grams per tonne gold and 39 g/t silver from 126.4 metres;
• UG-MR23-116: 5.2 metres grading 62.6 g/t gold and 92.9 g/t silver from 70.4 metres;
• UG-MR23-120: 2.1 metres grading 18.4 g/t gold and 10.8 g/t silver from 132.7 metres.

Diluvio deposit:

• UG-DI23-168: 14.3 metres grading 4.1 g/t gold and 54.3 g/t silver from 51.8 metres;
• UG-DI23-169: 5.1 metres grading 7.1 g/t gold and 78.3 g/t silver from 87.8 metres.

Reported intervals for UG-MR23-115, UG-MR23-116 and UG-MR123-120 are true widths from holes drilled at the Marianas deposit. Reported intervals for UG-DI23-168 and UG-DI23-169 are downhole apparent widths from holes drilled at the Diluvio deposit, as true width cannot be accurately estimated as these intercepts consist of brecciated and stockwork zones rather than discrete veins. For more information and full drill results, visit the Bear Creek website and see the press release dated Aug. 30, 2023.

Qualified person

Qualified person Keith Laskowski (MSc), Sandstorm's vice-president, geology, is a qualified professional (No. 01221QP) of the Mining and Metallurgical Society of America and a qualified person as defined by Canadian National Instrument 43-101. He has reviewed and approved the technical information in this press release.

About Sandstorm Gold Ltd.

Sandstorm is a precious-metals-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 grow and diversify its low-cost production profile through the acquisition of additional gold royalties.

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