Sandstorm Metals & Energy Increases Copper Stream with Donner Metals

VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Nov. 1, 2012) - Sandstorm Metals & Energy Ltd. ("Sandstorm" or the "Company") (TSX VENTURE:SND) is pleased to announce that it has increased its copper stream agreement with Donner Metals Ltd. ("Donner") (TSX VENTURE:DON) to purchase an amount of copper equal to 24.5% of the copper produced (the "Copper Stream") from the Bracemac-McLeod Mine, operated by Xstrata Canada Corp. ("Xstrata"). Previously, Sandstorm had completed a copper stream agreement with Donner, announced July 13, 2011 (the "Initial Stream"), to purchase 17.5% (now amended to 24.5%) of the copper produced from the Bracemac-McLeod Mine.

Sandstorm will make an upfront cash payment to Donner of US$7 million to increase the Copper Stream and will make ongoing per pound payments equal to the lesser of US$0.80 per pound of copper (the "Per Pound Payments") and the then prevailing market price of copper. If the spot price of copper falls below US$2.75 per pound, the Per Pound Payments will decrease and be equal to the lesser of US$0.55 per pound of copper and the then prevailing market price of copper. In consideration for the increased Copper Stream, Donner has agreed to waive its option to repurchase up to 50% of the Initial Stream. Additionally, Sandstorm has agreed to provide Donner with a US$2 million loan via a drawdown facility ("Drawdown Facility"), bearing 7% interest and expiring on February 1, 2014. The provision of the Drawdown Facility is contingent upon certain funding conditions by Donner.

"The increased copper stream with Donner will materially increase the near-term cash flow for Sandstorm Metals & Energy," said President & CEO Nolan Watson. "Xstrata has been operating base metal mines in the region for decades and we expect production to ramp up quickly in 2013."

As part of the transaction, Sandstorm Gold Ltd. ("Sandstorm Gold") has agreed to increase its gold stream to purchase 24.5% of the gold and gold equivalent of silver from the Bracemac-McLeod Mine, in exchange for making a payment to Donner (via a back-to-back agreement between Sandstorm Gold and Sandstorm Metals & Energy) of US$3 million. Sandstorm Gold will make ongoing per ounce payments equal to the lesser of US$350 per ounce of gold or gold equivalent and the then prevailing market price of gold. In addition, Sandstorm Gold has agreed to provide Donner with a US$2 million loan via a drawdown facility, bearing 7% interest and expiring on February 1, 2014.


ABOUT SANDSTORM METALS & ENERGY

Sandstorm Metals & Energy Ltd. is the world´s first diversified streaming company. Sandstorm provides upfront financing to resource companies that are looking for capital and in return, receives a commodity streaming agreement. This agreement gives Sandstorm the right to purchase a percentage of the commodity produced, for the life of the asset, at a fixed price. Sandstorm has acquired a portfolio of seven commodity streams in copper, palladium, oil, natural gas and coal. Sandstorm plans to grow its production base through the acquisition of additional commodity streams.

Sandstorm Metals & Energy is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed commodity purchase agreements with Colossus Minerals Inc., Donner Metals Ltd., Novadx Ventures Corp., Terrex Energy Inc., and Thunderbird Energy Corp.

For more information visit: www.sandstormmetalsandenergy.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 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 operations from which Sandstorm will purchase commodities and risks related to those 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 commodities; industry conditions, including fluctuations in the price of commodities, 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, Franco-Nevada Corp., BHP Billiton and Rio Tinto.

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.



Contact

Sandstorm Metals & Energy Ltd.
Nolan Watson, President & Chief Executive Officer
(604) 689-0234

Sandstorm Metals & Energy Ltd.
Denver Harris, Investor Relations Contact
(604) 628-1178
www.sandstormmetalsandenergy.com