Sandstorm Metals & Energy Provides Updates on the Bracemac-Mcleod Mine and the Royal Coal Amendment

Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwire -02/22/12)- Sandstorm Metals & Energy Ltd. ("Sandstorm") (TSX-V: SND.V - News) is pleased to provide an update on the development at the Bracemac-McLeod Mine ("Bracemac-McLeod"), as reported by Donner Metals Ltd. ("Donner") (TSX-V: DON.V - News) who is a joint venture partner with Xstrata Canada Corp. - Xstrata Zinc Canada Division ("Xstrata"), as well as provide an update to the previously announced amendment to the coal streaming agreement with Royal Coal Corp. ("Royal Coal") (TSX-V: RDA.V - News).

Bracemac-McLeod Mine

The development plan at Bracemac-McLeod has been revised to access the McLeod Zone with two ramps by early 2013. This change will not affect the existing development budget but reschedules production from the McLeod Zone to commence in late 2013 as opposed to mid 2014 under the original plan. The new development plan improves the overlap and timing of production from both the Bracemac and McLeod Zones with production from the Bracemac Zone expected to begin in the first half of 2013.

Underground drilling is scheduled to begin in mid 2012 on both the Bracemac and McLeod Zones. The objective of the underground drill program is to expand resources and to bring additional deposits into the mine plan.

Below is status summary of the mine development at Bracemac-McLeod:

 

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Surface
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Haulage road to Matagami mill                                      Complete
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Ramp portal at BAS pit, and stockpile and waste rock pads          Complete
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Access road to BAS pit                                             Complete
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Power, water service, surface pumps and mine water line to         Complete
 treatment facilities
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Power and access to vent/fill raise sites                          Complete
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Surface garage and support buildings (will be augmented by         Complete
 Perseverance buildings)
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Matagami mill (2950 tonnes per day capacity - upgraded in 2007-    Existing
 2008)
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Tailings Facility                                                  Existing
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Railroad and highway (zinc and copper concentrate shipping)        Existing
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Underground
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Ramp to Bracemac area and underground power supply        Complete
 (Bracemac)
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Temporary ventilation                                     Complete
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Multi-face development to Bracemac ore lenses             In progress
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Ramps to MacLeod zone                                     In progress
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Vent and fill raise construction                          In progress
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Underground pumping system                                In progress
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Equipment purchase and transfer from the Perseverance MineOngoing as needed
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Sandstorm has a copper streaming agreement with Donner to purchase 17.5% of the life of mine copper produced from Bracemac-McLeod at an ongoing per pound price of US$0.80 (if the copper price falls below US$2.75 per pound, Sandstorm's ongoing price per pound drops to US$0.55).

Sandstorm President and CEO Nolan Watson commented, "Xstrata and Donner have done an excellent job in meeting and exceeding development targets while remaining on budget. We look forward to initial production in 2013."

Xstrata Zinc is the project operator for Bracemac-McLeod and all of the respective joint ventures. As operator, Xstrata Zinc is responsible for the execution of all development, production and exploration programs on the property. This includes resource evaluation, sampling, submittal of samples for assay, assay verification, metallurgical evaluation and QA/QC.

Royal Coal Update

On December 22, 2011, Sandstorm announced an amendment to the coal streaming agreement with Royal Coal, the terms of which were contingent upon Royal Coal raising Cdn$5 million by means of an equity financing. Earlier today, Royal Coal announced the withdrawal of their preliminary prospectus and therefore, the previously announced amendment will not take effect.

Royal Coal is currently unable to meet its ongoing financial obligations in terms of operational requirements and debt servicing. Sandstorm has senior security over the assets of Royal Coal.

ABOUT SANDSTORM METALS & ENERGY

Sandstorm Metals & Energy Ltd. is a growth focused resource based company that seeks to complete commodity purchase agreements with companies that have advanced stage development or operating projects. A commodity purchase agreement involves Sandstorm making an upfront cash payment to its partners and in exchange, Sandstorm receives the right to purchase a percentage of the commodity produced for the life of the asset, at a fixed price per unit. Sandstorm helps other companies in the resource industry grow their business, while acquiring attractive assets in the process.

Sandstorm Metals & Energy is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed commodity purchase agreements with Novadx Ventures Corp., Royal Coal Corp., Terrex Energy Inc., Donner Metals Ltd. and Thunderbird Energy Corp.

For more information visit: http://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" within the meaning of applicable Canadian securities legislation. 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 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; problems inherent to the marketability of minerals; industry conditions, including fluctuations in the price of metals, 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, 2010. 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, Silver Wheaton Corp., Royal Gold, Inc., and Franco-Nevada Corporation.

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.

Contact:

Sandstorm Metals & Energy Ltd.
Nolan Watson
President and Chief Executive Officer
(604) 628-0234
Sandstorm Metals & Energy Ltd.
Denver Harris
Investor Relations Contact
(604) 628-1178
www.sandstormmetalsandenergy.com

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