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
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.  
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: 
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. 
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
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