Sandstorm and Novadx Announce the Completed Acquisition of

Sandstorm and Novadx Announce the Completed Acquisition of Additional Rex Coal and Related Assets in Tennessee  VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/02/13 -- Sandstorm Metals & Energy Ltd. ("Sandstorm") (TSX VENTURE:SND) together with Novadx Ventures Corp. ("Novadx") announce the completed acquisition (previously announced by Novadx on October 16, 2012) of Mine 12, the Turley Rail Load-Out, and the Smokey Junction Preparation Plant (the "Acquisition") located in Campbell and Scott Counties, Tennessee (the "Tennessee Properties"). The Tennessee Properties were acquired from Premium Coal Company, National Coal, LLC and Jacksboro Coal Company, LLC, for an aggregate purchase price of US$8.5 million (the "Purchase Price").  The Acquisition was completed through a newly incorporated company ("US Inc.") which will be initially owned by Sandstorm and by Novadx, based on their relative contribution to the Purchase Price. Novadx will have full control over management and operation of US Inc. and has a one-year option (the "Option Period") to acquire Sandstorm's interest in US Inc. at cost. Novadx will be responsible for the costs of any operations until the expiry of the Option Period. The Purchase Price was paid through a cash payment of US$3,000,000 contributed by Sandstorm, US$2,000,000 payable through the issuance of 4,377,675 common shares of Sandstorm and a short term promissory note issued by US Inc. in the amount of US$3,500,000 (the "Note"). The Note will be payable by US Inc. but may be paid through the issuance of Sandstorm common shares, at the option of Sandstorm.   Mine 12 is contiguous with Novadx's existing Rex coal reserves and will provide a second mine entry into the high quality coal seam and potentially add to the reserves and resources and extend the mine life. In addition, the Smokey Junction Preparation Plant should facilitate a more rapid start-up of mining operations at the Rex No. 1 mine and the Turley Rail Load-Out facility brings improved market access, both domestic and export. The Acquisition of the Tennessee Properties significantly improves Novadx's asset package and marketability and puts Novadx in a more favorable position to complete the special warrant financing previously announced on September 21, 2012 and October 12, 20 12. The US$3,000,000 cash commitment from Sandstorm towards the Purchase Price forms part of Sandstorm's previously announced commitment to subscribe for up to $5,000,000 under the Novadx special warrant financing.   ABOUT SANDSTORM METALS & ENERGY  Sandstorm Metals & Energy Ltd. is the world's first diversified streaming company. Sandstorm provides upfront financing to resource companies that are looking for capital and in return, receives a commodity streaming agreement. This agreement gives Sandstorm the right to purchase a percentage of the commodity produced, for the life of the asset, at a fixed price. Sandstorm has acquired a portfolio of seven commodity streams in copper, palladium, oil, natural gas and coal. Sandstorm plans to grow its production base through the acquisition of additional commodity streams.  Sandstorm Metals & Energy is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed commodity purchase agreements with Colossus Minerals Inc., Donner Metals Ltd., Novadx Ventures Corp., Terrex Energy Inc., and Thunderbird Energy Corp.   For more information visit: www.sandstormmetalsandenergy.com  CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION  Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities legislation. 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 information is based on reasonable assumptions that have been made by Sandstorm as at the date of such information and is subject to known and unknown risks, uncertainties and other 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 the forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over operations from which Sandstorm will purchase commodities and risks related to those 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; problems inherent to the marketability of commodities; industry conditions, including fluctuations in the price of commodities, fluctuations in foreign exchange rates and fluctuations in interest rates; stock market volatility; competition; 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. Although Sandstorm has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Sandstorm does not undertake to update any forward-looking information that is contained or incorporated by reference herein, except in accordance with applicable securities laws. Sandstorm does not provide any representation as to its comparability with other companies in its industry including, but not limited to, Franco-Nevada Corporation, BHP Billiton and Rio Tinto.  Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.  Contacts: Sandstorm Metals & Energy Ltd. Nolan Watson President & Chief Executive Officer (604) 689-0234  Sandstorm Metals & Energy Ltd. Denver Harris Investor Relations Contact (604) 628-1178 www.sandstormmetalsandenergy.com    
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