2% NSR - Sandstorm Gold Ltd.

SANDSTORM ACQUIRES
56 ROYALTIES FROM TECK
FOR US$22 MILLION
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING INFORMATION
Except for the statements of historical fact contained herein, the information presented constitutes "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, 2014 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.
Transaction Overview
PAYMENT TO TECK:
PAGE 03
SANDSTORM RECEIVES:
US$22 million
US$20.6M in SSL Shares
price based on 10-day VWAP
US$1.4M in Cash
56
Royalties
33
projects in North America
09
projects in South America
03
projects in Europe
11
project in Asia
TRANSACTION OVERVIEW
Advantages to Sandstorm
PAGE 04
IMMEDIATE CASH FLOW WITH GROWTH POTENTIAL
US$1.5 million to US$2.0 million in immediate cash
flow. Key Assets have potential to reach US$10 million
to US$15 million+ in cash flow per year.
ASSET DIVERSIFICATION
04
08
Producing
Advanced
Exploration
09
35
Development
Stage
Exploration
LONG-TERM OPTIONALITY
STRONG COUNTERPARTIES
7 Key Assets
PROJECT
OPERATOR
Hot Maden
PAGE 05
LOCATION
STATUS
TERMS
Mariana Resources Ltd.
Turkey
Advanced Exploration
2% NSR
Hackett River
Glencore plc
Canada
Development
2% NSR
Lobo-Marte
Kinross Gold Corp.
Chile
Development
1.75% NSR
Burhaniye
Tümad Madencilik A.Ş.
Turkey
Development
2% NSR
Copper Mountain
Copper Mountain Mining
Canada
Producing
5% NSR
Agi Dagi/Kirazli
Alamos Gold Inc.
Turkey
Development
US$10/oz
Oksut
Centerra Gold Inc.
Turkey
Development
0.5%–1.5% NSR
HOT MADEN
Mariana Resources Ltd.
PAGE 06
LOCATION:
ROYALTY:
STATUS:
2% NSR
Advanced Exploration
High grade gold-copper
mineralization discovered
RECENT DRILL RESULTS:
103m @ 9 g/t Au, 2.2% Cu
82m @ 20.4 g/t Au, 1.9% Cu
North Eastern,
Turkey
13m @ 88 g/t Au, 2.5% Cu
Resource delineation drilling within
and around the main mineralized zone
is ongoing.
HOT MADEN
Mineral Reserves and Resources
PAGE 07
HTD-18
HTD-5
HTD-10
As at August 2015
overburden
MT
gpt Au
%Cu
oz Au
M lb Cu
“Ultra” High Grade
1.03
29.2
4.00
967,000
90
High Grade
3.20
5.2
1.80
537,000
123
Low Grade
0.48
0.9
1.00
14,000
11
Total
4.71
10.0
2.20
1,518,000
224
“Ultra” High Grade
0.33
36.2
3.30
379,000
24
High Grade
2.29
3.1
2.00
228,000
99
Low Grade
0.82
0.8
1.00
21,000
18
Peripheral
0.22
1.8
0.40
13,000
2
Total
3.65
5.5
1.80
640,000
143
INDICATED
800m
43m @ 11.7 g/t Au, 2.2% Cu
750m
100.2m @ 5.6 g/t Au, 1.3% Cu
700m
Au-Cu Zone
Zn Zone
117.3m @ 13.9 g/t Au, 2.04% Cu
INFERRED
OPEN
650m
8m @ 15.1 g/t Au, 1.46% Cu
22m @ 46.2 g/t Au,
3.06% Cu
600m
108.2m @ 3.0 g/t Au, 1.3% Cu
12m @ 6.4 g/t Au, 2.8% Cu
550m
2m @ 8.6 g/t Au, 5.4% Cu
N
50m
9m @ 12.4 g/t Au,
0.8% Cu
OPEN
HOT MADEN
Drill Results Summary
INTE
RPRE
MINE
TED
RALI
POST
SATI
ON F
AULT
--------
---------------------------------------------------------------
2
HTD-08
7.2m @ 2.1 g/t Au, 1.6% Cu, 8.0m @ 1.8% Cu
3
HTD-20
88.5m @ 1.8 g/t Au, 2.3% Cu
4
HTD-04
103m @ 9.0 g/t Au, 2.2% Cu
5
HTD-17
83m @ 13.4 g/t Au, 3.88% Cu
6
HTD-09
22m @ 3.1 g/t Au, 0.3% Cu
7
HTD-18
108.2m @ 3.0 g/t Au, 1.3% Cu
8
HTD-15
117.3m @ 13.9 g/t Au, 2.04% Cu
Gold-Copper
9
HTD-10
100.2m @ 5.6 g/t Au, 1.3% Cu
10
HTD-24
36.3m @ 21.7 g/t Au, 5.5% Cu
Zinc
11
HTD-02
1.3m @ 9.9 g/t Au, 0.3% Cu
12
--------
---------------------------------------------------------------
13
14
HTD-05
HTD-13
82m @ 20.4 g/t Au, 1.9% Cu
109.9m @ 11.9 g/t Au, 1.13% Cu
15
HTD-16
100.7m @ 2.3 g/t Au, 1.84% Cu
16
HTD-11
107.7m @ 4.2 g/t Au, 0.9% Cu
17
HTD-22
43.8m @ 7.7 g/t Au, 1.2% Cu
18
HTD-12
38m @ 3.0 g/t Au, 1.74% Cu
64.1m @ 0.8 g/t Au, 0.3%
b
HTD-27
39m @ 5.8 g/t Au, 0.7% Cu
c
HTD-25
25.2m @ 7.3 g/t Au, 0.47% Cu
d
HTD-23
28.7m @ 1.8% Zn
e
HTD-03
1m @ 7.9 g/t Au, 0.2% Cu; 1m @ 19.9 g/t Au, 0.4% Cu
f
HTD-19
12.1m @ 2.1 g/t Au, 0.7% Cu
g
HTD-07
8m @ 1.6 g/t Au; 3m @ 2.1 g/t Au; 1m @ 4.8 g/t Au;
1m @ 3.0 g/t Au
h
HTD-01
1m @ 5.5 g/t Au, 0.4% Cu; 1m @ 121 g/t Au, 1.2% Cu;
1m @ 9.5 g/t Au, 0.6% Cu
i
HTD-26
12.5m @ 4.1% Zn
4542200N
3
4
5
9
8
7
10
MINERALISED ZONES
13
11
14
12
16
15
17
18
4542000N
OPEN TO
SOUTH
a
b
4541800N
HTD-21
2
6
NEW SOUTHERN
ZONE
c
d
e
f
g
h
4541600N
a
740800E
1
1
NEW SOUTHERN ZONE
740600E
4542400N
740400E
i
200m
N
HACKETT RIVER
Glencore plc
PAGE 09
ROYALTY:
MINE LIFE:
STATUS:
2% NSR
15+ yrs
Development-staged
VMS deposit
One of the world’s largest
undeveloped zinc projects
LOCATION:
will also produce lead, copper,
gold and silver byproducts
ESTIMATED AVERAGE ANNUAL PRODUCTION:
Nunavut,
Canada
230M lbs
35M lbs
25M lbs
8.5M ozs
14K ozs
of zinc
of lead
of copper
of silver
of gold
Royalty cashflow estimated to be US$8 million per year.
HACKETT RIVER
Mineral Reserves and Resources
PAGE 10
As at December 31, 2014
ZINC:
SILVER:
Indicated
4.0 B lbs
181 M ozs
Inferred
1.2 B lbs
57 M ozs
Total
5.2 B lbs
237 M ozs
* Please refer to Mineral Reserves & Resources on Glencore’s website for complete information relating to mineral reserves and mineral resources indicating tonnage and grade for the project.
LOBO-MARTE
Kinross Gold Corp.
PAGE 11
ROYALTY:
1.75% NSR
capped at US$40 million
LOCATION:
STATUS:
Development-ready
Large gold copper intrusive hosted deposit. Over 7 million
ounces M&I resources
MINERAL RESOURCES:
As at August 2015
TONNES (kt):
GRADE (g/t):
OUNCES (kozs):
Measured
96,646
1.13
3,525
Indicated
88,720
1.22
3,489
Measured & Indicated
185,366
1.18
7,014
* Please refer to Mineral Reserves & Resources on the Kinross website for complete information relating to mineral resources indicating tonnage and grade for the project.
Atacama,
Chile
ESTIMATED AVERAGE ANNUAL PRODUCTION:
350,000 ozs of gold
COPPER MOUNTAIN
Copper Mountain Mining
PAGE 12
LOCATION:
ROYALTY:
5% NSR on Virginia pit
and Alabama pit
In Production
Open-pit, milling operations
INDICATED RESOURCE:
INFERRED RESOURCE:
12,000,000 tonnes
11,800,000 tonnes
(0.34% Cu, 1.2 g/t Ag, 0.15 g/t Au)
(0.27% Cu, 0.94 g/t Ag, 0.13 g/t Au)
* Virgina pit
* Virgina pit
ESTIMATED ANNUAL CASHFLOW:
US$1 million
British Columbia,
Canada
STATUS:
AGI DAGI & KIRAZLI
Alamos Gold Inc.
PAGE 13
LOCATION:
ROYALTY (Agi Dagi):
ROYALTY (Kirazli):
$10/oz up to 600kozs
$10/oz up to 250kozs
expected mine life of 7 years
expected mine life of 5 years
STATUS:
Development-staged
Open-pit, heap leach operations
Western, Turkey
ESTIMATED AVERAGE ANNUAL PRODUCTION:
Agi Dagi
Agi Dagi
Kirazli
Kirazli
143K ozs
271K ozs
99K ozs
601K ozs
of gold
of silver
of gold
of silver
49 OTHER TECK ROYALTIES
PAGE 14
PROJECT
OPERATOR
LOCATION
STATUS
TERMS
Sheerness
Westmoreland Coal Company
Canada
Producing
5% GRR
Magmont
The Doe Run Resources Corporation
USA
Producing
1.25% NSR
Altintepe
Bahar Madencilik Sanayi ve Ticaret A.S.
Turkey
Producing
1.5% NSR
Ajax
KGHM Polska Miedz
Canada
Development
1.5% NSR
Keno Hill
Alexco Resources Corp.
Canada
Development
25% NPI
Ruddock Creek
Imperial Metals Corporation
Canada
Development
1% NSR
Los Verdes
Minera Alamos Sonora S.A. de C.V.
Mexico
Development
2% NSR
Box
Fortune Bay Corp
Canada
Advanced Exploration
1.5% NSR
Homestake Ridge
Homestake Resource Corporation
Canada
Advanced Exploration
2% NSR
Railroad
Gold Standard Ventures Corporation
USA
Advanced Exploration
3% NSR
Whistler
Brazil Resources Inc.
USA
Advanced Exploration
2% NPI
Karaagac
Anadolu Export Maden Sanayi ve Ticaret A.S.
Turkey
Advanced Exploration
1.5% NSR
Tac/Corak
Cengiz Kaya
Turkey
Advanced Exploration
1.5%-2% NSR
Tavsan (Red Rabbit)
Ariana Resources plc
Turkey
Advanced Exploration
2% NSR
Abitibi/Sarah Lake
Commander Resources Ltd.
Canada
Exploration
1% NSR
Big Bulk
LCT Holdings Inc.
Canada
Exploration
1.5% NSR
Butterfly Lake
North Arrow Minerals Inc.
Canada
Exploration
0.71% GOR
Caramelia
Huakan International Mining Inc.
Canada
Exploration
2% NSR
CT
Kreft Resources Ltd.
Canada
Exploration
0.75% NSR
Lorrain
Canadian Silver Hunter Inc.
Canada
Exploration
2% NSR
Mainstreet
Beaufield Resources Inc.
Canada
Exploration
1.2% NSR
New Afton
New Gold Inc.
Canada
Exploration
2% NSR
Rossland
Rossland Resources Inc.
Canada
Exploration
1%-2% NSR
Snip 2
Colorado Resources Ltd.
Canada
Exploration
2% NSR
Summit Lake
Rainy Mountain Royalty Corp.
Canada
Exploration
1.9% NSR
49 OTHER TECK ROYALTIES
Continued
PAGE 15
PROJECT
OPERATOR
LOCATION
STATUS
TERMS
Ten Mile Creek
Bernie Kreft
Canada
Exploration
1.5% NSR
Tsacha
Independence Gold Corp.
Canada
Exploration
2% NSR
Wrigley
Devonian Metals Inc.
Canada
Exploration
2% NSR
Aurora
Carlin Resources LLC
USA
Exploration
2% NSR
Big W
Barrick Gold U.S. Inc.
USA
Exploration
3% NSR
Cabin Creek
McEwen Mining Inc.
USA
Exploration
10% NPI
Cherry Creek
McEwen Mining Inc.
USA
Exploration
1.5% GOR
Lichen
Silver Phoenix Resources Inc.
USA
Exploration
2% NSR
Shotgun
TNR Gold Corp.
USA
Exploration
5% NPI
Van Stone
Equinox Resources (WASH), Inc.
USA
Exploration
1.5% NSR
Amapari
Mineracao Amapari S.A.
Brazil
Exploration
3% NPI
Rio Novo South
Rio Minas Mineracao S.A.
Brazil
Exploration
0.75% NSR
Gatita
Compania Minera Potosi S.A.
Peru
Exploration
1% NSR
Huajoto
Alturas Minerals Corp.
Peru
Exploration
0.5%-1% NSR
Mario
Fortuna Silver Mines Inc.
Peru
Exploration
2% NSR
Arcas
Altius Minerals Corporation
Chile
Exploration
1% NSR
Celeste
Coro Mining Corp.
Chile
Exploration
2% NSR
Pampa Lina
Sierra Gorda Sociedad Contractual Minera
Chile
Exploration
0.3% NSR
Kiskama
Talga Resources Ltd.
Sweden
Exploration
1% NSR
Masugnsbyn
Talga Resources Ltd.
Sweden
Exploration
1% NSR
Vittangi
Talga Resources Ltd.
Sweden
Exploration
1% NSR
Hasandagi
Newmont Mining Corporation
Turkey
Exploration
2% NSR
Muratdagi
Kenz Enerji ve Madencilik San. Ve Tic A.S.
Turkey
Exploration
2% NSR
Tombul
Elazig Baskil Madencilik A.S.
Turkey
Exploration
2% NSR
98 NEW STREAMS & ROYALTIES
In Last 24 Months
US$10 Million
US$1.6 Million
US$1 Million
US$4.6 Million
US$152 Million
SilverCrest
Pinecrest Resources
Akorade Royalty
Gold Royalties
Yamana
underground option
1 royalty buy back
13 royalties
2 Streams + 1 NSR
US$44 Million
US$400,000
US$50,000
US$0.5 Million
SND Acquisition
Nyrstar
8 Nevada Royalties
Pacific Ridge
8 streams/royalties
8 royalties
US$22 Million
Teck
3 royalties
56 royalties
2015
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
2014
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
Diavik Royalty
US$52.2 Million
JAN
Alexandria Minerals
Karma Stream
Bomboré Royalty
2 royalties
US$30 Million
US$3 Million
US$1 Million
24 MONTHS AGO
TODAY
34
13
132
19
Streams
& Royalties
Producing
Assets
Streams
& Royalties
Producing
Assets