Sandstorm Gold Announces Fourth Quarter and Annual Results

Sandstorm Gold Announces Fourth Quarter and Annual Results 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/18/13 -- Sandstorm
Gold Ltd. ("Sandstorm" or the "Company") (TSX:SSL)(NYSE MKT:SAND) is
pleased to announce its results for the fourth quarter and year ended
December 31, 2012 (all figures in U.S. dollars).  
Fourth Quarter Highlights (3 Months) 


 
--  Gold sales totaled 7,243 ounces. 
--  Operating cash flow was $6.5 million. 
--  Average cash cost per ounce(1) was $410 resulting in cash operating
    margins(2) of $1,305 per ounce. 
--  Net income was $7.4 million. 
--  Entered into a gold streaming agreement with Munity Gold Inc. to
    purchase 15% of the life of mine gold produced from the Deflector Mine. 

 
2012 Highlights (12 Months) 


 
--  Gold sales totaled 33,514 ounces, an increase of 81% over 2011. 
--  Record operating cash flow of $37.6 million. 
--  Average cash cost per ounce(1) was $356 resulting in cash operating
    margins(2) of $1,313. 
--  Net income of $21.9 million. 
--  Acquired a 2.5% net smelter returns ("NSR") royalty on the Coringa gold
    project and a 1% NSR on the Cuiu Cuiu gold project from Magellan
    Minerals Ltd. 
--  Acquired a 2.4% NSR royalty on the Mt. Hamilton gold project from
    Solitario Exploration & Royalty Corp. 
--  Metanor Resources Inc. obtained approval for commercial production at
    the Bachelor Lake Mine. 
--  The Company's common shares began trading on the NYSE MKT LLC under the
    symbol SAND. 
--  Completed an equity financing for aggregate gross proceeds of CAD$150.1
    million. 
--  Entered into a gold stream agreement with Colossus Minerals Inc. to
    purchase 1.5% of the gold and 35% of the platinum produced from the
    Serra Pelada Mine.

 
"I am happy to report that we met our 2012 guidance and had a strong
year in terms of gold production and cash flow," said Sandstorm
President and CEO Nolan Watson. "We added value for our shareholders
by completing two gold streams and three gold royalty deals during
the year and intend to continue to deploy our cash into accretive
gold stream opportunities."  
Outlook 
Sandstorm's forecasted attributable production for 2013 is 33,000 to
40,000 gold equivalent ounces coming from seven active mines.
Attributable
 production is expected to increase to approximately
70,000 gold equivalent ounces by 2016 from the Company's current
portfolio of gold streams.  
The Company's Management's Discussion and Analysis (MD&A) and
Financial Statements for the fourth quarter and annual results will
become accessible on the Company's website and will be posted on
SEDAR at www.sedar.com. The Company has also completed a Form 40F
filing with the SEC which will be posted on EDGAR at
http://www.sec.gov/edgar.shtml. Shareholders can request a hard copy
of the MD&A and Financial Statements by emailing
info@sandstormltd.com.  
Webcast and Conference Call Details 
A conference call will be held on Tuesday, February 19, 2013 starting
at 8:30am PST to further discuss the fourth quarter and annual
results. To participate in the conference call use the following
dial-in numbers: 
Local/International: 647-788-4916  
North American Toll-Free: 877-214-4966 
It is recommended that participants dial in five minutes prior to the
commencement of the conference call. Click here to access an audio
webcast of the conference call which will also be available on the
Sandstorm website. 
ABOUT SANDSTORM GOLD 
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 ten gold
streams, six of which are producing gold, and four 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., Entree Gold Inc., 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: www.sandstormgold.com. 
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION 
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 volati
lity, 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,
2012 available at www.sedar.com. 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.  
Note 1: Sandstorm has included a non-IFRS performance measure in this
press release being average cash cost per ounce. Average cash cost
per ounce is calculated by dividing the Company's costs of sales
(excluding depletion) by the number of ounces sold. The Company
presents average cash costs per ounce as it believes that certain
investors use this information to evaluate the Company's performance
in comparison to other companies in the precious metals mining
industry who present results on a similar basis. 
Note 2: Sandstorm has included a non-IFRS performance measure in this
press release being cash operating margin. Cash operating margin is
calculated by subtracting the average cash cost of gold on a per
ounce basis from the average realized selling price of gold on a per
ounce basis. The Company presents cash operating margin as it
believes that certain investors use this information to evaluate the
Company's performance in comparison to other companies in the
precious metals mining industry who present results on a similar
basis. 
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. 
Contacts:
Sandstorm Gold Ltd.
Nolan Watson
President & Chief Executive Officer
(604) 689-0234 
Sandstorm Gold Ltd.
Denver Harris
Investor Relations Contact
(604) 628-1178
www.sandstormgold.com