SND-Presentation Jan 2012

The World’s FirstDiversified StreamingCompany

Sandstorm Metals & Energy was launched 8 months ago and has acquired:

$52M - Met Coal and Thermal Coal from NovaDX and Royal Coal

Sandstorm Metals & Energy (TSXV-SND) is the world’s

first base metal and energy streaming company.

Sandstorm Metals & Energy was launched in December 2010 and has since acquired 9 commodity streams.

Sandstorm Metals & Energy has a sister company called Sandstorm Gold (TSXV-SSL) which has 7 gold streams and a market capitalization of +$400 million.

ABOUT SANDSTORM METALS & ENERGY

02





MANAGEMENT & BOARD

Management

Nolan Watson (CA, CFA) - President & CEOFormer CFO of Silver Wheaton

David Awram (B.Sc, Geologist) - EVPFormer Director of IR at Silver Wheaton

Justin Cochrane (CFA) - EVPFormer VP at National Bank Financial

Claudia Tornquist (M. Eng., MBA) - EVPFormer GM of Business Evaluation at Rio Tinto

Dan Gundersen (P. Eng., CFA) - VPFormer VP Engineering at DeeThree Exploration

John Budreski - Vice-Chairman, Cormark SecuritiesFormer President & CEO of Orion Securities

David DeWitt - Director of Bear Creek, Nautilus MineralsFormer Director of Arequipa and Peru Copper

Andy Swarthout - CEO of Bear Creek Mining

Marcel de Groot - Chairman of Luna Gold Corp.

Non-Executive Directors

03

SANDSTORM METALS & ENERGY LAUNCHED 1 YEAR AGO AND HAS ACQUIRED:

Terrex Energy

ONE NATURAL GAS STREAM $ 25M

FIVE COAL STREAMS $ 44M TWO OIL STREAMS $ 15M

ONE COPPER STREAM $ 20MThunderbird Energy Donner Metals

Met coal and Thermal Coal from NovaDX and Royal Coal

04

05

NAV BY COMMODITY

Natural Gas

Sandstorm cost per unit: $1 / mcf (plus 20% of price above $4 / mcf for royalties)

Oil

Sandstorm cost per unit:$15 / bbl (plus transportand government royalties)

Thermal CoalMetallurgical Coal

Sandstorm cost per unit: $75 / tSandstorm cost per unit: $55 / t

Copper

Sandstorm cost per unit: $0.80 / lb

Cash

16%

27%

9%

12%

17%

19%

AlbertaOil Streams

UtahNatural Gas Stream

Quebec

Tennessee, Alabama, KentuckyCoal Streams

Copper Stream

100% of assets inNorth America

SANDSTORM METALS & ENERGY: CURRENT STREAMS

06

Asset Underground zinc mine, with copper by-product in Quebec – Operated by Xstrata. Expected to be in the lowest cash cost quartile. Ore to be milled at Xstrata owned Matagami mill.

StatusUnder development, expected to be complete by end of 2012

Production21M lbs of copper per annum

Copper Stream Terms17.5% of mine production at $0.80/ lb ($0.55/lb if Cu price is < $2.75)

Cash Flow Guarantee Guaranteed payback in 5 years

DONNER METALSCopper Stream Bracemac-McLeod Mine

07

COPPER STREAM: EXPLORATION UPSIDE

1400

0 E

SURFACE

-200m

-1000m

1200

0 E

1300

0 E

200 m 0 m

-1200m

MCLEOD ZONES

42

M-18

M-14

M-25M-26

M-28

06

17

27

90-733

BR-2 5 3

ASR-3BR-8A

6

5

21

9EXT

6EXT

32

31

03

30Magnetite

17

20

45

40

04EXT

16A

06EXT

10EXT

3633EXT

37

44

79

81

80

50

25EXT

48

28EXT

76

77

78

83

62

76W1

67

65

84

12

Open

Open

Open

45

85

20W1

20W2

34

Open

24

75

8687

75

Open

OpenOn

wes

t si

de o

f Gab

bro

sill

MCL-09-01Gabbro

03

06

?

38.09% Zn / 0.15m

BRACEMAC ZONES

02-W6

09-02

02-W534-W1

02-W2

03-W1

St. Pat Zone

02-W7

-800m

-400m

-600m

0215

14

19

18

49

52

53

56

61

59

57

60

63

7355

66

68

64

7254

71 74

Composite section Composite section

Strong Chlorite

“Pipe” Alteration

FOOTWALL ALTERATION

Gabbro Sill

Other Dykes

Sulphides in Mine Plan

Possible extension of Sulphides

Sulphide Resources

Cu Stringer

DRILL HOLE PIERCE POINTS

Massive Sulphides

Semi Massive and Stringer Sulphides

N116° N296°

BracemacMulti sulphide lenses at different stratigraphic levels

Hole pierce points projected to vertical long section. Distances between holesare shortened in this perspective.

Bracemac ZonesMining Reserve

West McLeod Zone Inferred Resource0.16Mt @ 2.2%Zn, 2.6%Cu, 24g/t Ag, 0.2g/t Au

McLeod ZoneMining Reserve

Stringer Zone Indicated Resource0.24Mt@ 1.0%Zn,1.25% Cu

McLeod DeepInferred resources2.47Mt@ 9.2% Zn,1.22% Cu, 40g/t Ag, 1.1g/t Au

Area of Current MineDevelopment - 4 year minelife on current mining reserves

08

Asset Natural Gas project in Utah, USA

StatusUnder development, �rst wells to be complete by Q1 2012 with full produc-tion by 2014

Production5 bcf per annum

Gas Stream Terms35% at $1/mcf plus 20% above$4/mcf


THUNDERBIRD ENERGYNatural Gas Stream Gordon Creek

09

Asset Underground Met Coal mine in Tennessee, USA

StatusUnder development, expected to be complete by Q3 2013

Production500k tons per annum (2P reserves of 32M tons)

Coal Stream Terms25% for several years, decreasing to 16%, at $75/t


NOVADXMetallurgical Coal Stream Rex No. 1 Mine

10

11

Asset Auger and strip Met Coal mine in Alabama, USA

StatusIn commercial production

Production150k tons per annum

Coal Stream Terms25% for several years, decreasing to 16% at $75/t


NOVADXMetallurgical Coal Stream Rosa Mine

OTHER STREAMS

OPERATOR

PROJECTS

LOCATION

COMMODITY

STATUS

COMMODITY

STREAM TO SND

ONGOING PAYMENT

ESTIMATED ANNUAL

PRODUCTION

NOTES

Big Branch

Kentucky, USA

Thermal Coal

Producing

18% for several years

and 12% thereafter

$55/ton

400,000 tons per annum

increasing to 700,000 tons

Guaranteed payback

in 5 years

SID Mine

Kentucky, USA

Thermal Coal

Development

18% for several years

and 12% thereafter

$55/ton

500,000 tons

Guaranteed payback

in 5 years

All Assets

Kentucky, USA

Thermal Coal

Producing/Development

2.7% GRR

N/A

N/A

Guaranteed payback

in 7 years

Two Creek & Strathmore

Alberta, Canada

Oil Streams

Producing/Development

25% of Two Creek and

15% of Strathmore

$15/bbl

Peak Production of 345k

bbl/yr

12

13

PRODUCTION SCHEDULES

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

Strathmore

Two Creek

Rosa Mine

Rex No. 1

Big Branch

SID Mine

Gordon Creek

Bracemac-McLeod

OIL AND GAS

OIL AND GAS

THERMAL COAL

THERMAL COAL

METALLURGICAL COAL

METALLURGICAL COAL

NATURAL GAS

COPPER

Terrex Energy NovaDXRoyal Coal Thunderbird Energy Donner Metals

*POLYMER FLOOD

*POLYMER FLOOD

14

ESTIMATED OPERATING CASH FLOW

Price Assumptions: US$160/t Met Coal, US$70/t Thermal Coal, $80/bbl Oil, $4.50/mcf Natural Gas, $2.50/lb Copper

NovaDX

Royal CoalRoyal Coal Royalty

Terrex Energy

Thunderbird Energy

Donner Metals

Est

. Aft

er T

ax C

ash

Flo

w (U

SD m

illio

ns)

$5

$10

$15

$20

$25

$30

$35

2012 2013 2014 2015 2016

15

MAXIMIZING UPSIDE POTENTIAL MINIMIZING DOWNSIDE RISK

Total Cash FlowGuarantees

Base Case

Commodity Price Upside

$10

$20

$30

$40

$50

2012 2013 2014 2015 2016

Base Case Price Assumptions: US$160/t Met Coal, US$70/t Thermal Coal, $80/bbl Oil, $4.50/mcf Natural Gas, $2.50/lb Copper

CASH FLOW GUARANTEES LIMIT RISK

$ 10 $ 20 $ 30 $ 40 $ 50 $ 60 $ 70 $ 80 $ 90 $ 100 $ 110 $ 120 $ 130 $ 140

CASH FLOW GUARANTEES+ Cash on Hand

MARKET CAPITALIZATION

$ 150

USD millions

16

17

PEER COMPARISON

0

5

10

15

20EV/Cash Flow

SandstormGold

7.0

SandstormMetals

2.8

AngloPaci�cGroup

14.8

InternationalRoyalty

Company

14.9

Royal Gold

15.0

SilverWheaton

12.0

FrancoNevada

14.0

Diversi�ed Commodities Precious Metals

1. Based on 2013 estimates. Comparators using Bloomberg estimates on January 10, 2012

2. Post issue Sandstorm based on Company estimates for Enterprise Value and Cash Flow

3. International Royalty Company’s multiple based on acquisition price divided by 2 year forward cash �ow estimates

18

Shares Issued & Outstanding

Options

Warrants (expire December 23, 2012)

Number

318 M

15 M

155 M

Exercise Price

--

$0.48

US$0.70

CurrentOutstanding

318 M

--

--

Treasury StockDilution Calculation

318 M

0 M

0 M

Total 318 M 318 M

Institutional Holdings Shares (millions)% of Shares

Outstanding

Libra Advisors 41.1 12.9%

Arias Resource Capital 35.5 11.2%

Wellington Management 32.7 10.3%

Sentry Select Capital 15.0 4.7%

Mawer Investment Management 10.0 3.2%

Total Insiders & Key Individuals 19.1 6%

· The US$0.70 warrants trade under the symbol SND.WT

· Exercise of warrants and options would bring in approx. US$113M

CURRENT SHARE CAPITAL

19

In cash �ow guarantees

Sandstorm is creating a diversi�ed, world class, cash �owing company.

NINE

$ 99M

COMMODITY STREAMS

DIVERSIFIED COMMODITIESFIVE 15%

30%

8%

14%

13%

20%15%

30%

8%

14%

13%

20%15%

30%

8%

14%

13%

20%15%

30%

8%

14%

13%

20%15%

30%

8%

14%

13%

20%

5 x 2 x 1 x 1 x

20

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 re�ned; problems inherent to the marketability of minerals; industry conditions, including

�uctuations in the price of metals, �uctuations in foreign exchange rates and �uctuations in interest rates; stock market volatility; competition; as

well as those factors discussed in the section entitled “Risk Factors” in Sandstorm’s �nal short form prospectus as well as in Sandstorm’s annual

information form incorporated by reference in such prospectus. 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

CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES

This presentation uses the terms “Measured”, “Indicated” and “Inferred” Resources. U.S. investors are advised that while such terms are

recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred

Mineral Resources” have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed

that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral

Resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of

Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. U.S. investors are also cautioned not to assume that all or

any part of an Inferred Mineral Resource exists, or is economically or legally mineable.

21

Documents

SND-Presentation Jan 2012