An anonymous director reports

SANDSTORM GOLD ROYALTIES ANNOUNCES RECORD SALES AND REVENUE IN 2023

Sandstorm Gold Ltd. has released the sales and revenue figures for the fourth quarter and year ended Dec. 31, 2023 (all figures are in U.S. dollars).

Annual results

The company sold approximately 97,200 attributable gold equivalent ounces (1) and realized preliminary revenue (2) of $179.6-million for the full 2023 year, both representing a record for the company (82,376 attributable gold equivalent ounces and $148.7-million in revenue for the comparable period in 2022). The company had preliminary total sales, royalties and income from other interests (1) of $191.5-million for the full year 2023, a record for the company ($148.7-million total sales, royalties and income from other interests for the comparable period in 2022).

Preliminary cost of sales, excluding depletion (2) for the full 2023 year, was $21.7-million resulting in cash operating margins (1) of approximately $1,706 per attributable gold equivalent ounce (1) ($23.4-million and $1,511 per attributable gold equivalent ounce for the comparable period in 2022, respectively).

Fourth quarter results

During the three months ended Dec. 31, 2023, the company sold approximately 23,300 attributable gold equivalent ounces (1) and realized preliminary revenue (2) of $44.5-million (21,753 attributable gold equivalent ounces and $38.4-million in revenue for the comparable period in 2022). The company had preliminary total sales, royalties and income from other interests (1) of $46.3-million for the three months ended Dec. 31, 2023 ($38.4-million total sales, royalties and income from other interests for the comparable period in 2022).

Preliminary cost of sales, excluding depletion (2) for the three months ended Dec. 31, 2023, was $4.9-million resulting in cash operating margins (1) of approximately $1,737 per attributable gold equivalent ounce (1) ($5.5-million and $1,493 per attributable gold equivalent ounce for the comparable period in 2022, respectively).

Note (1): Sandstorm has included certain performance measures in this press release that do not have any standardized meaning prescribed by international financial reporting standards including: (i) attributable gold equivalent ounces; and (ii) cash operating margin. The presentation of these non-IFRS measures is intended to provide additional information, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS measures differently. Note these figures have not been audited and are subject to change.

(i) As the company's operations are primarily focused on precious metals, the company presents attributable gold equivalent ounces as it believes that certain investors use this information to evaluate the company's performance in comparison with other mining companies in the precious metal mining industry which present results on a similar basis. Attributable gold equivalent ounces is a non-IFRS financial ratio that uses total sales, royalties and income from other interests as a component. Total sales, royalties and income from other interests is a non-IFRS financial measure and is calculated by taking total revenue which includes sales and royalty revenue and adding contractual income relating to royalties, streams, and other interests excluding gains and losses on dispositions, which, during the full year 2023, is primarily composed of a one-time payment received as per the company's royalty agreement on the Mount Hamilton project. Attributable gold equivalent ounces are calculated by dividing the company's total sales, royalties and income from other interests, less revenue attributable to non-controlling shareholders for the period, by the average realized gold price per ounce from the company's gold streams for the same respective period ([$191.5-million minus $3.9-million] divided by $1,929 for the full year 2023, and [$148.7-million minus $900,000] divided by $1,795 for the comparable period in 2022); ([$46.3-million minus $1.0-million] divided by $1,948 for the three months ended Dec. 31, 2023, and [$38.4-million minus $500,000] divided by $1,746 for the comparable period in 2022) and may be subject to change.

(ii) The company presents cash operating margin as it believes that certain investors use this information to evaluate the company's performance and ability to generate cash flow in comparison with other companies in the precious metal mining industry which present results on a similar basis. Cash operating margin is calculated by subtracting the average cash cost per attributable gold equivalent ounce from the average realized gold price per ounce from the company's gold streams (see item (i)) for the same respective period. Average cash cost per attributable gold equivalent ounce is calculated by dividing the company's cost of sales, excluding depletion, by the number of attributable gold equivalent ounces ($21.7-million divided by 97,200 attributable gold equivalent ounces for the full year 2023, and $23.4-million divided by 82,376 attributable gold equivalent ounces for the comparable period in 2022); ($4.9-million divided by 23,300 attributable gold equivalent ounces for the three months ended Dec. 31, 2023, and $5.5-million divided by 21,753 attributable gold equivalent ounces for the comparable period in 2022).

Note (2): These figures have not been audited and are subject to change. As the company has not yet finished its quarter-end close procedures, the anticipated financial information presented in this press release is preliminary, subject to final quarter and year-end closing adjustments, and may change materially.

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 approximately 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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