Sandstorm Resources Acquires Gold Stream from Brigus Gold's Black Fox Mine


November 9, 2010

Announcement Highlights:

  • Sandstorm has entered into a gold purchase agreement with Brigus Gold Corp. on its Black Fox gold mine in Ontario
  • Sandstorm to purchase 12% of the life of mine gold production
  • Sandstorm will make an upfront payment of US$56.3 million with cash on hand
  • Sandstorm will pay US$500 per ounce as an ongoing payment
  • The Black Fox mine is currently in production and Sandstorm expects to receive delivery of gold beginning in January 2011

Vancouver, British Columbia, November 9, 2010 -- Sandstorm Resources Ltd. ("Sandstorm") (TSX-V: SSL) is pleased to announce that it has entered into a gold purchase agreement with Brigus Gold Corp. ("Brigus") (TSX: BRD).

Sandstorm has agreed to purchase 12% of the life of mine gold produced from Brigus' Black Fox mine, located in Ontario, Canada (the "Black Fox Mine") for US$56.3 million as an upfront payment plus ongoing per ounce payments equal to the lesser of US$500 (subject to an inflationary adjustment beginning in 2013, not to exceed 2% per annum)(the "Per Ounce Payments") and the then prevailing market price per ounce of gold. Brigus will have the option, for a period of 24 months, to repurchase 50% of the gold purchase agreement by making a US$36.6 million payment to Sandstorm, upon receipt of which, the percentage of gold Sandstorm is entitled to purchase shall be decreased from 12% to 6%. Also, for no additional upfront consideration, Sandstorm will have the right to purchase, by remitting the Per Ounce Payments, 10% (decreasing to 4.5% if the full repurchase option is exercised within 24 months) of the gold produced from an area defined as the Black Fox Extension, covering a portion of Brigus' Pike River property.

About The Black Fox Mine

The Black Fox Mine is located outside of Matheson, Ontario, Canada in the Timmins Gold District and has been in commercial production since May 2009. It is currently operating as an open pit mine, but since mid 2010, began development of an underground mine which it expects to begin production in early 2011. At this time, both open pit and underground operations are expected to run concurrently. Ore is trucked to the Black Fox mill, which is a 2,000 tonne per day mill and tailings facility located east of the mine. Brigus has been operating the asset with improving production rates and reducing cash costs quarter over quarter since the beginning of commercial production. In the third quarter of 2010, the Black Fox Mine produced in excess of 21,000 ounces of gold, and production is continuing to ramp up.

The Black Fox mineralization is an Archean age, lode gold deposit located within the Abitibi greenstone belt along with several other producing gold mines and gold camps. Exploration is ongoing with a drill program being pursued at the mine.

"This is a very significant and transformative deal for Sandstorm," stated Nolan Watson, President and Chief Executive Officer of Sandstorm Resources, "the Black Fox mine is expected to provide us with cash flow from gold sales immediately and is also a project that has fantastic growth prospects on the exploration front. Brigus has assembled an excellent operating team and seems to be in a position to grow the project effectively."

ABOUT SANDSTORM RESOURCES

Sandstorm Gold Ltd. is a growth focused resource based company that seeks to complete gold purchase agreements with companies that have advanced stage development projects or operating mines. A gold 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 gold produced for the life of the mine, at a fixed price per ounce. Sandstorm helps other companies in the resource industry grow their business, 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 gold purchase agreements with Luna Gold Corp., SilverCrest Mines Inc., Santa Fe Gold Corp., Rambler Metals and Mining plc, Brigus Gold Corp., Metanor Resources Inc. and Donner Metals Ltd.

For more information visit: http://www.sandstormgold.com.

Cautionary Note Regarding Forward-Looking Information
Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities legislation. 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 include but are not limited to, statements with respect to the transactions contemplated by the proposed Consolidation of the Company's Common Shares and a proposed listing of the Company's securities in the United States. 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.

CONTACT INFORMATION
Sandstorm Gold Ltd.
Nolan Watson, President & Chief Executive Officer
(604) 689-0234

Denver Harris, Investor Relations Contact
(604) 628-1178

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.