FORTUNE FAVOURS THE GOLD NYSE AMERICAN: SAND TSX: SSL MAY 2018
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 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 and other commodity 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, other commodities or receive royalties from, 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 and other commodities, 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, 2017 and the Company’s annual information form dated March 29, 2018 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. 2
Why Own Sandstorm? Right Model, Right Team 1 Industry Leading Growth 2 Significant Exploration Upside 3 Trading at Discount to Peers 4 3
The Right Technical Team Our technical team average 40 years experience in the mining industry 4
Transaction experience includes more than The Right $3 billion in royalty financings Management Team 5
Sandstorm’s Attributable AuEq Ounces 125K 108% 120k 100k Industry Leading 80k Growth 60K 60k Au 40k $1,300/oz Ag $18.00/oz 20k Cu $3.00/lb 0 2 2 2 2 2022 2 0 0 0 0 0 1 1 2 2 2 8 9 0 1 3 6
INDUSTRY LEADING GROWTH $102M Operating Cash Flow After Tax in millions $75M $100M Au $1,300/oz $80M Ag $18.00/oz $60M Cu $3.00/lb $40M $20M $0 2 2 2 2 2022 2 0 0 0 0 0 1 1 2 2 2 8 9 0 1 3 7 Cash flow figures exclude approx. $6 million/yr of G&A
175 INDUSTRY LEADING GROWTH Gold Equivalent Ounces Number of Assets 60,000 50,000 40,000 30,000 20,000 10,000 0 2010 2011 2012 2013 2014 2015 2016 2017 Revenue US$M 70 5 60 50 40 30 20 10 0 2010 2017 2010 2011 2012 2013 2014 2015 2016 2017 8
INDUSTRY LEADING GROWTH Ounces based on counterparty Majors Mid-tiers Juniors 83% 89% 11% 17% 24% 100% 50% 39% 59% 2010 2022 Average All-In Cost at 2018 mines below $600/oz 9
INDUSTRY LEADING GROWTH SANDSTORM ACQUIRES ANCHOR ASSET, HOD MADEN FOR US$175 MILLION TRANSACTION RATIONALE Anchor royalty asset 1 High grade & low capex 2 100% increase in production for 19% dilution 3 Strong local operator 4 Huge exploration upside 5 10
Hod Maden Land Package approx. 74km 2 3 drill rigs, over 25,000 metres of exploration and infill drilling Northern Extension Northern Extension of Hod Maden of Hod Maden completed in 2017 Main Gold-Copper Main Gold-Copper Fault Zone Fault Zone Resource Resource New Southern New Southern Discovery Discovery Northern limit of drilling Southern limit of drilling Pre-1923 Russian Pre-1923 Russian Mining Area Mining Area 1 km 4 km 11
HOD MADEN Cross Section 0 Au-Cu Zone H 2 9 7 T - - D 2 D D 6 T - 0 T 7 H H H - 6 H D 7 T T - HTD-88 T D D D H - T - 1 1 H 5 8 95.5m H T @ 32.1 g/t Au, 3.3% Cu D 800m - 6 5 90.0m 750m @ 22.6 g/t Au, 4.39% Cu 34.5m 700m @ 19.4 g/t Au, 1.31% Cu 650m 83.3m @ 15.9 g/t Au, 1.57% Cu 600m 79.0M 108.2m @ 8.1 g/t Au, 1.90% Cu @ 3.0 g/t Au, 1.35% Cu 550m 117.3m 86.5m 500m @ 13.9 g/t Au, 2.04% Cu @ 3.4 g/t Au, 1.44% Cu 74.0m 450m 29.0m @ 3.0 g/t Au, 1.57% Cu @ 0.3 g/t Au, 1.31% Cu 400m 50m 12
HOD MADEN Timeline 2 018 20 19 20 20 20 21 20 22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Pre-feasibility Study Estimated production Feasibility Study by end of 2021 Permitting Construction Commissioning Production 13
INDUSTRY LEADING GROWTH SANDSTORM ACQUIRES 2% NSR ON HOUNDÉ GOLD MINE FOR US$45 MILLION TRANSACTION RATIONALE Immediate cash flow 1 Strong operator 2 Upside Potential, Large Land Package 3 14
Significant Sandstorm’s Attributable AuEq Ounces Exploration Produced Discovered Upside 100k 84,000 79,000 80k More ounces were discovered on Sandstorm properties than were mined in in 2016 and 2017 1 60k 55,000 50,000 40k 20k 2016 2017 15 1 Findings based on internal study by Sandstorm 1 Findings based on internal study by Sandstorm
SIGNIFICANT EXPLORATION UPSIDE 2017 2010 2011 2012 2013 2014 2015 2016 Metres Drilled 100,000 200,000 300,000 Over 500,000 metres were drilled on Sandstorm 400,000 properties in 2016 and 2017 1 500,000 600,000 16 1 Findings based on internal study by Sandstorm
Recent Drill Results HOLE # INTERCEPT (Not True Width) Au (g/t) Cu (%) FROM (m) HTD-157 33.0 metres 40.4 1.77 287.0 Hod Maden including 7.0 metres 97.6 3.86 308.0 Lidya Madencilik HTD-128 105.5 metres 17.4 2.34 9.0 HTD-85 60.6 metres 82.2 1.44 209.4 HTD-71 69.6 metres 62.7 2.68 210.0 BRAZD612 21.0 metres 84.3 5.0 Aurizona BRAZP603 19.0 metres 1.9 48.0 Equinox Gold Corp. including 8.0 metres 3.7 54. BRAZP587 1.0 metres 19.7 92.0 BRAZP587 5.0 metres 67.1 97.0 including 1.0 metres 329.0 97.0 BKD-232 36.5 metres 5.6 90.5 Bayan Khundii including 22.0 metres 8.3 102.0 Erdene Resource Devleopment Corp. BKD-231 14.0 metres 158.3 193.0 including 1.0 metres 2,200.0 193.0 BKD-227 61.0 metres 4.2 54.0 BKD-222 40.0 metres 4.0 41.0 17
Recent Drill Results HOLE # INTERCEPT (Not True Width) Au (g/t) Cu (%) FROM (m) BEO-17-79 0.5 metres 119.0 367.5 Barry MB-17-140 3.0 metres 8.1 96.0 Metanor Resources Inc. MB-17-137 4.5 metres 10.4 367.5 MB-17-131 4.9 metres 5.9 501.1 Cadillac Break OAX-17-210 206.1 metres 1.1 43.1 including 15.8 metres 4.1 212.0 Alexandria Minerals Corp. * Orenada Zone 4 OAX-17-168 17.5 metres 8.6 24.8 BGM17-045-022 2.8 metres 6.2 32.8 Bradshaw including 1.0 metres 13.0 34.0 Gowest Gold Ltd. BGM17-045-015 2.5 metres 66.7 73.0 including 1.0 metres 156.0 73.0 BGM17-045-012 4.2 metres 21.0 68.0 740-L275-71 1.8 metres 41.0 6.3 Black Fox 740-L275-71 6.1 metres 36.9 26.1 McEwen Mining Inc. 680-F115-09 4.0 metres 77.3 73.6 520-EX346-35 1.7 metres 29.5 385.6 520-EX346-23 5.1 metres 39.6 357.2 520-EX346-17 3.9 metres 7.2 474.1 18
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