Sandstorm Gold Acquires Gold Stream From Mutiny Gold

Sandstorm Gold Acquires Gold Stream From Mutiny Gold 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/05/12 -- Sandstorm
Gold Ltd. ("Sandstorm" or the "Company") (TSX:SSL)(NYSE
Amex:SAND)(NYSE MKT:SAND) is pleased to announce that it has entered
into a gold stream agreement with Mutiny Gold Ltd. ("Mutiny")
(ASX:MYG) to acquire an amount of gold from the Deflector Project
("Deflector") located in Western Australia.  
Sandstorm has agreed to purchase an amount equal to 15% of the gold
produced from Deflector (the "Gold Stream"). Pursuant to this
agreement, Sandstorm will make an initial upfront cash payment to
Mutiny of US$9 million (the "Initial Deposit") and will make a future
cash remittance of US$29 million (the "Second Deposit") once Mutiny
has received final mine permits for Deflector as well as completed
certain funding conditions. In addition, Sandstorm will make ongoing
per ounce payments equal to the lesser of US$500 per ounce of gold
and the prevailing market price of gold (the "Per Ounce Payments").
If Deflector produces more than 85,000 ounces of gold in a given
year, Sandstorm will make a one-time US$4 million payment to Mutiny
(the "Conditional Deposit"). Aside from the Initial Deposit, the
Second Deposit, the Per Ounce Payments and the Conditional Deposit,
Sandstorm is not required to contribute to any capital, exploration
or operating expenditures in respect to Deflector.  
"The transaction with Mutiny Gold marks Sandstorm's first foray into
the Australian market which has had very limited exposure to stream
financing," said President & CEO Nolan Watson. "The Deflector Project
is expected to be a high-grade, low-cost producer and we believe
there is significant exploration upside on the property. Australia
has a number of excellent assets and we hope this deal is the first
of many in the country."  
Mutiny will have the option, for a period of 36 months from the date
of the Second Deposit, to repurchase in whole or in part, up to 50%
of the Gold Stream by making a payment equal to the greater of
US$24.7 million or the value of 14,472 gold ounces, whereupon the
percentage of gold that Sandstorm is entitled to purchase shall be
decreased from 15% to 7.5%. 
If Mutiny subsequently discovers and develops an additional mine
within a defined area outside of the area subject to the Gold Stream,
Sandstorm has the right, but not the obligation, to purchase 15% of
the gold produced at a per ounce price of US$500 in exchange for
Sandstorm paying 15% of the capital expenditures incurred for the
About Deflector 
Deflector is a high-grade gold and copper deposit located in the
South Murchison, Western Australia. A definitive feasibility study
completed in October 2012, projects 55,000 ounces of annual gold
production at Deflector over a 7.5 year mine life. Production will
begin from an open pit operation and expand underground, with ore
from both the open pit and underground being processed through the
existing Gullewa processing facility. The facility is being upgraded
and will include a floatation circuit as well as a revamped mill and
gravity circuit, providing plant capacity of 480,000 tonnes per year
for oxide and transition ore during the first two years of production
and 380,000 tonnes per year for primary ore thereafter.  
Deflector JORC-compliant Resource - November 2012 

                           Au       Au   Cu       Cu    Ag       Ag    Au Eq
Classification   Tonnes (g/t)     (oz)  (%)      (t) (g/t)     (oz)     (oz)
Measured      1,164,000   6.0  223,000  1.5   17,000  10.9  407,000  310,000
Indicated     1,043,000   7.3  246,000  0.6    7,000   4.2  140,000  279,000
Measured &                                                                  
 Indicated    2,207,000   6.6  468,000  1.1   24,000   7.7  547,000  589,000
Inferred        658,000   5.8  122,000  0.5    3,000   3.9   82,000  140,000
Totals        2,865,000   6.4  591,000  0.9   27,000   6.8  629,000  729,000

-The gold equivalence calculation represents total metal value for
each metal assuming 100% recovery, summed and expressed in equivalent
gold grade or ounces.  
-The AUD metal prices used in the calculation were $1,700/oz Au,
$8,000/t Cu, $27.0/oz Ag.  
-Totals may appear incorrect due to appropriate rounding 
Deflector JORC-compliant Reserves - November 2012 

                           Au       Au    Cu     Cu     Ag       Ag    Au Eq
Classification   Tonnes (g/t)     (oz)   (%)     (t) (g/t)     (oz)     (oz)
Proven        1,253,000   4.7  187,000   1.2  15,000   8.4  339,000  213,000
Probable      1,091,000   5.1  179,000   0.5   4,000   2.9  102,000  202,000
Totals        2,344,000   4.9  367,000   0.8  19,000   5.9  441,000  415,000

-The gold equivalence calculation represents total metal value for
each metal assuming 100% recovery, summed and expressed in equivalent
gold grade or ounces.  
-The AUD metal prices used in the calculation were $1,700/oz Au,
$8,000/t Cu, $27.0/oz Ag.  
-Totals may appear incorrect due to appropriate rounding. 
Shane McLeay, Principal Consultant to Mutiny, FAusIMM, B. Eng, Mining
of Entech Pty Ltd., is the Qualified Person under NI 43-101
responsible for reviewing and approving the technical information
contained in this news release. 
For more information on Deflector, visit the Mutiny Gold website at 
Sandstorm Gold Ltd. is a gold streaming company. Sandstorm provides
upfront financing for gold mining companies that are looking for
capital. In return, Sandstorm receives a gold streaming agreement.
This agreement gives Sandstorm the right to purchase a percentage of
the life of mine gold produced, at a fixed price. Sandstorm is a
non-operating gold mining company with a portfolio of nine gold
streams, five of which are producing gold, and three NSR royalties.
Sandstorm plans to grow and diversify its low cost production profile
through the acquisition of additional gold streams.  
Sandstorm is focused on low cost operations with excellent
exploration potential and strong management teams. Sandstorm has
completed gold purchase or royalty agreements with Brigus Gold Corp.,
Colossus Minerals Inc., Donner Metals Ltd., Luna Gold Corp., Magellan
Minerals Ltd., Metanor Resources Inc., Mutiny Gold Ltd., Santa Fe
Gold Corp., SilverCrest Mines Inc., Rambler Metals and Mining plc and
Solitario Exploration & Royalty Corp.  
For more information visit: 
This press release contains "forward-looking statements", within the
meaning of the U.S. Securities Act of 1933, the U.S. Securities
Exchange Act of 1934, the Private Securities Litigation Reform Act of
1995 and applicable Canadian securities legislation, concerning the
business, operations and financial performance and condition of
Sandstorm Gold Ltd. ("Sandstorm"). Forward-looking statements
include, but are not limited to, statements with respect to the
future price of gold, the estimation of mineral reserves and
resources, realization of mineral reserve estimates, the timing and
amount of estimated future production. Forward-looking statements can
generally be identified by the use of forward-looking terminology
such as "may", "will", "expect", "intend", "estimate", "anticipate",
"believe", "continue", "plans", or similar terminology.   
Forward-looking statements are made based upon certain assumptions
and other important factors that, if untrue, could cause the actual
results, performances or achievements of Sandstorm to be materially
different from future results, performances or achievements expressed
or implied by such statements. Such statements and information are
based on numerous assumptions regarding present and future business
strategies and the environment in which Sandstorm will operate in the
future, including the price of gold and anticipated costs. Certain
important factors that could cause actual results, performances or
achievements to differ materially from those in the forward-looking
statements include, amongst others, gold price volatility,
discrepancies between actual and estimated production, mineral
reserves and resources and metallurgical recoveries, mining
operational and development risks relating to the parties which
produce the gold Sandstorm will purchase, regulatory restrictions,
activities by governmental authorities (including changes in
taxation), currency fluctuations, the global economic climate,
dilution, share price volatility and competition.   
Forward-looking statements are subject to known and unknown risks,
uncertainties and other important factors that may cause the actual
results, level of activity, performance or achievements of Sandstorm
to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: the impact
of general business and economic conditions, the absence of control
over mining operations from which Sandstorm will purchase gold and
risks related to those mining operations, including risks related to
international operations, government and environmental regulation,
actual results of current exploration activities, conclusions of
economic evaluations and changes in project parameters as plans
continue to be refined, risks in the marketability of minerals,
fluctuations in the price of gold, fluctuation in foreign exchange
rates and interest rates, stock market volatility, as well as those
factors discussed in the section entitled "Risks to Sandstorm" in
Sandstorm's annual report for the financial year ended December 31,
2011 available at Although Sandstorm has attempted to
identify important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. Sandstorm does not undertake to update
any forward looking statements that are contained or incorporated by
reference, except in accordance with applicable securities laws.  
Neither the TSX Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Exchange) accepts
responsibility for the adequacy or accuracy of this release. 
Sandstorm Gold Ltd.
Nolan Watson
President & Chief Executive Officer
(604) 689-0234 
Sandstorm Gold Ltd.
Denver Harris
Investor Relations Contact
(604) 628-1178
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