Sandstorm Resources Acquires Gold Stream From Rambler Metals & Mining Plc


March 4, 2010

For Immediate Release:

Announcement Highlights:

  • Sandstorm enters into Gold Volumetric Production Payment with Rambler's Copper-Gold Property in Newfoundland
  • Sandstorm to purchase 25% of the first 175,000 ounces of payable gold from the Ming Mine and then 12% of the payable gold thereafter
  • Sandstorm will make an upfront payment of US$5 million with cash on hand, and will make additional aggregate payments of US$15 million after certain conditions are met for a total payment of US$20 million
  • No ongoing payments for ounces delivered

Vancouver, British Columbia, March 4, 2010 - Sandstorm Resources Ltd. ("Sandstorm" or the "Corporation") (TSX-V: SSL) is pleased to announce that it has entered into a gold purchase agreement with Rambler Metals & Mining plc ("Rambler") (AIM: RMM; TSX-V: RAB), a United Kingdom-based mining and exploration company.

Sandstorm has agreed to purchase 25% of the first 175,000 ounces of payable gold, and 12% of the payable gold thereafter, from Rambler's copper-gold Ming Mine (the "Ming Mine"), located on the Baie Verte Peninsula in Newfoundland, Canada. In consideration, Sandstorm will make staged upfront cash payments to Rambler totaling US$20,000,000 (the "Upfront Deposit"). The 'First Deposit' of US$5,000,000 will be paid to Rambler immediately. The 'Second Deposit' of US$2,000,000 will be paid to Rambler upon completion and delivery to Sandstorm of a satisfactory NI 43-101 compliant Feasibility Study, which Rambler anticipates completing in the second quarter of 2010. The 'Third Deposit' of US$13,000,000 will be paid to Rambler upon receipt of all necessary permits for the Ming Mine, which Rambler anticipates receiving in the second half of 2010.

"The future exploration potential on this asset is very promising," stated Nolan Watson, President and Chief Executive Officer of Sandstorm Resources, "Rambler's management team has done an exceptional job preparing this asset to go into production. With the recent Nugget Pond Mill acquisition and the permitting process nearly completed, we are confident that Rambler will be able to bring the asset into successful production within the next 12 to 18 months."

Rambler will be subject to the following completion guarantees:

  1. The Ming Mine must begin gold production within 18 months of the closing of this transaction or Rambler will be required to fully refund the Upfront Deposit, plus 8% interest.
  2. Within 24 months of the commencement of production, Rambler must have produced and sold a minimum of 24,000 ounces of payable gold or Sandstorm will have the option to require a partial refund of the Upfront Deposit.
  3. Rambler will guarantee that Sandstorm will receive minimum cash flows from the contract of US$3,600,000 in the first year of production, US$3,600,000 in the second year of production and US$3,100,000 in the third year of production.
About The Ming Mine

The Ming Mine is a past producing underground massive sulfide copper-gold mine located in northwestern Newfoundland. The area has a strong history of gold, base metal and industrial minerals mining. Infrastructure is excellent and the Ming Mine is immediately adjacent to a major highway. A brief history of operations is summarized below:
  • The Ming Mine contains the former producing Ming and Ming West copper-gold mines.
  • The Ming Mine last operated in 1982 and produced some 2.1 million tons of ore grading 3.5% Cu and 2.5 g/t Au over 10 years of operations.
  • Mining ceased when workings reached a neighbouring property boundary.
A summary of the mineral resource as of February 19, 2009 of the Ming Mine is as follows (a full table including footnotes is included at the end of this news release):

Resource Classification
Quantity
Grades
 
Contained Metal
(000't)
Copper %
Gold g/t
Silver g/t
Zinc %
 
Copper tonnes
Gold oz
Silver
oz
Zinc tonnes
Measured
1,151
2.14
2.40
14.11
0.78
24,605
88,808
522,245
8,954
Indicated
2,500
2.25
0.90
4.98
0.21
56,218
72,527
399,863
5,249
Total M&I
3,651
2.21
1.37
7.86
0.39
 
80,823
161,335
922,107
14,203
 
 
 
Inferred
1,498
1.72
2.05
9.36
0.63
25,836
98,740
450,673
9,369

* Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures are rounded to reflect the accuracy of the estimate. Cut off grades of 1.0 per cent copper for the massive sulfides, 1.25 grams per tonne gold for the 1806 zone, 1.25 per cent copper for the upper footwall zone and 2.00 per cent for the lower footwall zone are based on an NSR model and metal prices of US$1.92/lb copper, US$800/oz gold, and US$10/oz silver. Zinc does not contribute to the revenues. These are the total mineral resources for the Ming Mine, not the resources attributable to Sandstorm through the Gold Volumetric Production Payment.

Rambler has recently purchased the Nugget Pond Mill located just 40 km from the Ming Mine. The gold concentrator will be adapted to process base metals sulfides from the Ming Mine through the addition of a copper flotation circuit as well as process the 'free gold' that exists in the Rambler geological system. The modification will diversify the existing facility and allow for a range of processing capabilities.

Rambler has recently compiled an internal business plan to develop the existing NI 43-101 compliant resource at the Ming Mine. The section of the report concerning the underground operation is already at a feasibility level while the work on surface engineering, including the concentrator, is at a scoping level. With the acquisition of the Nugget Pond facility, the detailed surface engineering can now be completed allowing for a full compliant NI 43-101 mine plan. Considering just the existing measured and indicated massive sulfide resources, as well as recently identified similar mineralized zones and an extraction rate of 850 metric tonnes per day, the Ming Mine is expected to have a significant life. This has the potential to increase, as all mineralized zones are open in multiple directions. The above plan also excludes the bulk tonnage lower footwall zone that Rambler intends to develop once it is in production. The internal business plan will form the basis of the full project evaluation which is expected to be publicly released during the first half of 2010.

Larry Pilgrim, B.Sc., P.Geo., Chief Mine Geologist with Rambler is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical disclosure in this press release. Additional information on the Ming Mine can be found in "Form 43-101F1 Technical Report Mineral Resource Estimate for the Ming Mine, Newfoundland Canada" dated April 8, 2009 filed on SEDAR at www.sedar.com under Rambler's profile. Sandstorm will file a technical report on SEDAR in support of this press release within 45 days of the date of this press release.

For more information on the Ming Mine, please visit the Rambler Metals & Mining website at www.ramblermines.com.

ABOUT SANDSTORM RESOURCES
Sandstorm Resources Ltd. is a growth focused resource based company that seeks to complete transactions with companies that have advanced stage development projects or operating mines. By making upfront payments to its partners, Sandstorm receives volumetric production payments (i.e. metal stream deals) on precious metals. Sandstorm helps other companies in the resource industry grow their businesses, while acquiring attractive assets in the process.

Sandstorm is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed volumetric production payments with Luna Gold Corp, SilverCrest Mines Inc., Santa Fe Gold Corporation and Rambler Metals & Mining plc. For more information visit: www.sandstormresources.com

The February 19, 2009 Mineral Resource Statement for the entire Ming Mine is:

Ming Mine Mineral Resource Statement - 19 February 2009
Rambler Metals and Mining Canada Limited

Resource Classification
Quantity
Grades
Contained Metal
(000't)
Copper %
Gold g/t
Silver g/t
Zinc %
Copper tonnes
Gold oz
Silver oz
Zinc tonnes
Measured
Ming Massives: 1807 Zone
328
3.68
1.76
7.03
0.75
12,061
18,578
74,007
2,465
1806 Zone
267
0.56
4.32
32.09
1.31
1,501
37,004
275,188
3,503
Ming South Down Plunge
463
1.68
2.00
10.13
0.58
7,803
29,741
150,906
2,678
Ming South Up Plunge
94
3.46
1.16
7.36
0.33
3,241
3,485
22,144
308
Sub-Total Massive Sulphides
1,151
2.14
2.40
14.11
0.78
24,606
88,808
522,245
8,954
 
                 
Upper Footwall Zone
                 
Lower Footwall Zone
                 
Sub-Total Stringer Sulphides
                 
 
                 
Total
1,151
2.14
2.40
14.11
0.78
24,606
88,808
522,245
8,954
Indicated
Ming Massives: 1807 Zone
105
4.41
1.72
7.68
0.55
4,621
5,793
25,857
575
1806 Zone
82
0.75
2.82
13.97
0.70
617
7,471
36,976
579
Ming South Down Plunge
645
1.61
2.41
9.81
0.56
10,353
49,998
203,377
3,623
Ming South Up Plunge
41
2.69
1.04
8.28
0.24
1,094
1,354
10,813
97
Sub-Total Massive Sulphides
873
1.91
2.30
9.88
0.56
16,684
64,616
277,023
4,874
 
Upper Footwall Zone
365
2.73
0.22
2.67
0.05
9,963
2,601
31,316
173
Lower Footwall Zone
1,262
2.34
0.13
2.25
0.02
29,570
5,310
91,523
202
Sub-Total Stringer Sulphides
1,627
2.43
0.15
2.35
0.02
39,533
7,911
122,839
375
 
Total
2,500
2.25
0.90
4.98
0.21
56,217
72,527
399,862
5,249
Inferred
Ming Massives: 1807 Zone
20
3.12
1.40
7.81
0.33
638
921
5,147
68
1806 Zone
138
0.74
1.97
8.35
0.61
1,022
8,733
37,097
838
Ming South Up Plunge
3
1.36
1.45
9.21
0.52
46
159
1,009
18
Ming South Down Plunge
1,336
1.81
2.07
9.48
0.63
24,129
88,928
407,420
8,445
Sub-Total Massive Sulphides
1,498
1.72
2.05
9.36
0.63
25,836
98,740
450,673
9,369
 
 
 
 
 
 
 
 
 
Upper Footwall Zone
 
 
 
 
 
 
 
 
Lower Footwall Zone
 
 
 
 
 
 
 
 
Sub-Total Stringer Sulphides
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
1,498
1.72
2.05
9.36
0.63
25,836
98,740
450,673
9,369

* Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures are rounded to reflect the accuracy of the estimate. Cut off grades of 1.0 per cent copper for the massives, 1.25 grams per tonne gold for the 1806 zone, 1.25 per cent copper for the upper footwall zone and 2.00 per cent copper for the lower footwall zone are based on an NSR model and metal prices of US$1.92/lb copper, US$800/oz gold and US$10/oz silver. Zinc does not contribute to the revenues.

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 the Corporation 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; delays in the construction of the Ming Mine as well as those factors discussed in the section entitled "Risk Factors" in Sandstorm's annual information form for the financial year ended March 31, 2009. 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 is a precious metals company. It considers it peers to be Silver Wheaton Corp., Royal Gold Inc., Franco-Nevada and International Royalty Corp.

Contact Information:

Sandstorm President and CEO
Nolan Watson
(604) 689-0234

Investor Relations Contact
David Awram
(604) 689-0234

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.