Sandstorm Metals & Energy Releases Fourth Quarter Results


VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 15, 2012) - Sandstorm Metals & Energy Ltd. ("Sandstorm" or "the Company") (TSX VENTURE:SND.V - News) announces the release of its results for the fourth quarter and the year ended December 31, 2011 (all figures in U.S. dollars).

Fourth Quarter Summary (3 Months)

Sandstorm recorded a $13.1 million net loss for the three months ended December 31, 2011, attributable to a number of factors including:

--  A non-cash impairment charge of $14.6 million relating to the assets of

    Royal Coal Inc. ("Royal Coal"). 

--  An increase of $0.5 million in administration expenses primarily driven

    by an increase in the Company's professional fees and corporate


--  The loss was partially offset by $2.7 million of income, representing

    the amount owing on the 2011 Novadx Ventures Corp. ("Novadx") commodity

    stream cash flow guarantee.

"Royal Coal represents approximately 10% of our capital base, but has been a disproportionately large portion of our recent news flow," stated Nolan Watson, President & CEO. "Sandstorm management made the decision to write-down Royal Coal's assets and take a loss for 2011, thus allowing our shareholders to focus on the many positives ahead for our young company. We intend to complete additional commodity streaming deals in 2012 that will strengthen and further diversify our asset base and with $40 million in cash on hand and $80 million in minimum cash flow guarantees, we are well positioned in the current market."

2011 Summary (12 Months)

--  Entered into an energy streaming agreement with Terrex Energy Inc.

    ("Terrex") to purchase 25% of all oil and natural gas for the life of

    the Two Creek Jurassic A property and for five years of the Two Creek

    Jurassic B property and 15% of all oil and natural gas for the life of

    the Strathmore property. 

--  Entered into a copper streaming agreement with Donner Metals Ltd.

    ("Donner") to purchase 17.5% of all copper for the life of mine at the

    Bracemac-McLeod property.  

--  Entered into an energy streaming agreement with Thunderbird Energy Corp.

    ("Thunderbird") to purchase 35% of all natural gas for the life of the

    Gordon Creek property. 

--  Sandstorm has minimum cash flow guarantees from its partners totaling

    $80 million. 

--  Completed an equity financing for gross proceeds of $51.4 million. 

--  The Rosa Mine achieved commercial production and commenced shipments of

    cleaned coal to customers in the coking coal and activated carbon


Operational Highlights

Producing Assets

Novadx's Rosa Mine is an auger and strip coal mining operation located in Alabama, USA. Novadx has reached commercial production at Rosa and is shipping cleaned coal to customers in the coking coal and activated carbon markets.

Terrex has two oil and gas projects in Alberta, Canada. The Two Creek property has 16 producing wells in two separate oil pools and the Strathmore property has 10 producing wells in one main oil pool. Production volumes are expected to increase materially with the implementation of polymer floods at the Strathmore and Two Creek properties in 2013.

Development Assets

Donner is the owner of a 35% joint venture interest in the Bracemac-McLeod mine which is operated by Xstrata Canada Corporation ("Xstrata"). Xstrata plans to utilize the existing Matagami mill to produce concentrates of zinc and copper. The Bracemac-McLeod mine will be an underground mine, accessed via a ramp, and is expected to begin ore production in early 2013. Underground drilling is scheduled to begin in the middle of 2012 to expand resources and to bring additional deposits into the mine plan.

Thunderbird's Gordon Creek property is located in Utah, USA. Gordon Creek is comprised of roughly 7900 acres, four producing wells, seven shut in wells and a 100% owned gas gathering and water disposal system. Gordon Creek is located adjacent to and shares geology with Utah's largest coal bed methane natural gas field known as Drunkard's Wash. Thunderbird is contractually obligated to workover 5 wells and drill an additional 50 wells by the end of 2013.

Novadx's Rex No. 1 Mine ("Rex") is a coal project located in Tennessee, USA. Novadx recently assembled a continuous miner with a beltline to transport mined coal to the surface. An on-site wash plant is currently being permitted and is expected to be constructed by the end of 2013.

Further details of the individual commodity streams can be found within Management's Discussion and Analysis contained in the Company's 2011 annual report and on the Company website.


Sandstorm expects that revenue from coal and oil sales will increase slightly during 2012. In 2013, copper production from the Bracemac-McLeod mine, coal production from the Rex No. 1 Mine and natural gas production from Gordon Creek is expected to lead to material increases in cash flow and revenue.

Webcast and Conference Call Details

A conference call will be held on Friday, March 16, 2012 starting at 1:00 pm EST to further discuss the fourth quarter 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.


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., Terrex Energy Inc., Donner Metals Ltd. and Thunderbird Energy Corp.

For more information visit:

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, 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, 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.

Erfan Kazemi
Sandstorm Metals & Energy Ltd.
Chief Financial Officer
(604) 628-0234

Denver Harris
Sandstorm Metals & Energy Ltd.
Investor Relations Contact
(604) 628-1178

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