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Sandstorm Gold Announces Record Gold Sales And Revenue In Fourth Quarter 2013

VANCOUVER, March 11, 2014 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (NYSE MKT: SAND, TSX: SSL) has released its unaudited results for the fourth quarter and year ended December 31, 2013 (all figures in U.S. dollars).

Fourth Quarter Highlights (3 Months)
  • Record gold sales of 10,523 ounces, excluding Premier Royalty Inc.'s ("Premier Royalty") attributable ounces.
  • Record revenue of $15.8 million.
  • Average cash cost per ounce 1 of $407 resulting in cash operating margins 1 of $863 per ounce.
  • Operating cash flow of $8.1 million.
  • Net loss of $39.9 million primarily due to a non-cash impairment charge of $52.2 million relating to the Serra Pelada Gold Stream.

2013 Highlights (12 Months)
  • Record gold sales of 36,146 ounces, excluding Premier Royalty's attributable ounces.
  • Record revenue of $59.8 million.
  • Operating cash flow of $32.2 million.
  • Average cash cost per ounce 1 of $420 resulting in cash operating margins 1 of $981.
  • Net loss of $74.6 million.
  • Acquired all of the outstanding common shares of Premier Royalty.
  • Completed a $10 million loan to Luna Gold Corp. ("Luna") in accordance with a previously announced commitment to issue a non-revolving loan facility to Luna.
  • Acquired a 1.0% net smelter returns royalty ("NSR") on the Paul Isnard gold project located in French Guiana and owned by Columbus Gold Corporation.
  • Acquired a 1.2% precious metal NSR on the Prairie Creek project located in the Northwest Territories, Canada from Canadian Zinc Corporation.
  • Amended the previously announced gold stream with Mutiny Gold Ltd. to a 2.6% gold stream on the Deflector mine.
  • Entered into a streaming agreement with Entrée Gold Inc. to purchase 25.7% and 33.8% of Entrée's 20% share of the gold and silver produced from the Heruga and Hugo North Extension deposits in Mongolia.

Sandstorm President & CEO Nolan Watson commented, "Amidst a challenging gold price environment in 2013, our streaming partners demonstrated the economic strength of their mining operations as the average all-in cost of the mines underlying our four key streams was close to $1,000 per ounce by the end of the year." Watson added, "Our focus is building shareholder value by growing and diversifying our production base and cash flow through the acquisition of streams and royalties."


Based on the existing gold streams and including attributable production relating to the Company's NSRs, forecasted 2014 attributable production is between 40,000 to 50,000 gold equivalent ounces, increasing to approximately 60,000 of gold equivalent ounces per annum by 2016. This growth is largely driven by the Company's portfolio of gold streams with mines, most of which are either currently producing or expected to commence production by 2015.

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