SND Presentation

8/3/2019 SND Presentation

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The Worlds FirstDiversified StreamingCompany


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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 worlds

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 companycalled Sandstorm Gold (TSXV-SSL) which has 7 gold

streams and a market capitalization of +$400 million.

ABOUT SANDSTORM METALS & ENERGY

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MANAGEMENT & BOARD

Management

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

David Awram (B.Sc, Geologist) - EVP

Former 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 Securities

Former President & CEO of Orion

Securities

David DeWitt - Director of BearCreek, Nautilus Minerals

Former Director of Arequipa and Peru

Copper

Andy Swarthout - CEO of Bear

Creek Mining

Marcel de Groot - Chairman of LunaGold Corp.

Non-Executive Directors

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SANDSTORM METALS & ENERGY

LAUNCHED 1 YEAR AGO AND HAS ACQUIRED:

Terrex Energy

ONE NATURAL GAS STREAM $25M

FIVE COAL STREAMS

$44MTWO OIL STREAMS

$15M

ONE COPPER STREAM $20MThunderbird Energy Donner Metals

Met coal and Thermal Coal from

NovaDX and Royal Coal

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NAV BY COMMODITY

Natural Gas

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

OilSandstorm 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%


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Alberta

Oil Streams

UtahNatural Gas Stream

Quebec

Tennessee, Alabama, KentuckyCoal Streams

Copper Stream

100% of assets in

North America

SANDSTORM METALS & ENERGY: CURRENT STREAMS

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Asset

Underground zinc mine, with copperby-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

Production

21M 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

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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 Terms

35% at $1/mcf plus 20% above$4/mcf

Cash Flow GuaranteeGuaranteed payback in 7 years

THUNDERBIRD ENERGYNatural Gas Stream

Gordon Creek

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AssetUnderground 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

Cash Flow Guarantee

Guaranteed payback in 5 years

NOVADXMetallurgical Coal Stream

Rex No. 1 Mine

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AssetAuger 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

Cash Flow GuaranteeGuaranteed payback in 5 years

NOVADXMetallurgical Coal Stream

Rosa Mine


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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

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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


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ESTIMATED OPERATING CASH FLOW

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

NovaDX

Royal CoalRoyal Coal Royalty

Terrex Energy

Thunderbird Energy

Donner Metals

Es

t.AfterTaxCashFlow

(USD

millions)

$5

$10

$15

$20

$25

$30

$35

2012 2013 2014 2015 2016


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MAXIMIZING UPSIDE POTENTIAL MINIMIZING DOWNSIDE RISK

Total Cash Flow

Guarantees

Base Case

$10

$5

$15

$20

$25

$30

2012 2013 2014 2015 2016

Base Case Price Assumptions:

Est.AfterTaxCashFlo

w

(USD

millions)

US$160/t Met Coal

US$70/t Thermal Coal

US$80/bbl Oil

US$3.50/mcf Natural Gas

US$3.00/lb Copper


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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

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PEER COMPARISON

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 Companys multiple based on acquisition price divided by 2 year forward cash ow estimates

0

5

10

15

20EV/Cash Flow

SandstormMetals

3.3

AngloPacic

Group

14.7

InternationalRoyalty

Company

14.9

Royal Gold

16.7

SilverWheaton

14.1

FrancoNevada

12.0

Diversied Commodities Precious Metals

SandstormGold

8.9


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In cash ow guarantees

Sandstorm is creating a diversied, world class, cash owing company.

NINE

$99M

COMMODITY STREAMS

DIVERSIFIED COMMODITIESFIVE15%


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20

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 M318 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


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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 theactual 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 rened; 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 Sandstorms nal short form prospectus as well as in Sandstorms 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.

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