Sandstorm Gold Recognizes Record Gold Sales in the Fourth Quarter

Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (TSX-V:SSL) is pleased to announce its results for the fourth quarter and year ended December 31, 2011 (all figures in U.S. dollars).

Fourth Quarter Highlights (3 Months)

• Record gold sales totaled 6,611 ounces.
• Operating cash flow increased 353% to $7.8 million compared with $1.7 million in Q4 2010.
• Net earnings increased 189% to $4.9 million compared with US$1.7 million in Q4 2010.
• Average cash cost per ounce1 was $407 resulting in cash operating margins of $1,276 per ounce.

2011 Highlights (12 Months)

• Gold sales totaled 18,516 ounces; an increase of 697% over 2010.
• Operating cash flow increased to $20.7 million compared with $0.5 million in 2010.
• Entered into a gold streaming agreement with Metanor Resources Inc. to purchase 20% of the life of mine gold produced from the Bachelor Lake Mine.
• Entered into a gold streaming agreement with Donner Metals Ltd. via a back-to-back agreement with Sandstorm Metals & Energy Ltd. to purchase 17.5% of the life of mine gold and gold equivalent produced from the Bracemac-McLeod development project.
• Gold production reached feasibility levels at both the Aurizona Mine and Santa Elena Mine.
• Luna Gold Corp. released a significant mineral resource update at the Aurizona Mine. Measured and indicated gold resources now total 78 million tonnes at 1.26 grams per tonne gold or 3.2 million ounces, an increase of 250% from the previous mineral resource estimate. Inferred gold resources now total 15.2 million tonnes at 1.47 grams per tonne gold or 0.7 million ounces, an increase of 79% from the previous resource estimate.
• Rambler Metals & Mining plc. began mining and processing ore from its flagship project, the Ming Mine. Commercial production is targeted before the end of fiscal 2012.

"2011 was a breakout year for Sandstorm Gold. Not only did our attributable gold production and cash flow increase significantly, but we saw the Company's mineral resources expand by over 80%," said Sandstorm President & CEO Nolan Watson. "The focus for 2012 is to complete additional gold streaming deals and with a strong cash position, a $50 million revolving line of credit, and over $3 million in cash flow coming in on a monthly basis, we are well capitalized to do so."

Outlook

In 2012, Sandstorm will be purchasing gold from five mines, all of which are expected to increase production throughout the year. Sandstorm's forecasted attributable production for 2012 is 25,000 to 35,000 ounces of gold increasing to over 50,000 ounces of gold per annum by 2015.

Further details of the individual commodity streams can be found within Management's Discussion and Analysis contained in the Company's 2011 annual report and on the Company website.

Webcast and Conference Call Details

A conference call will be held on Friday, March 16, 2012 starting at 12:00 pm EST to further discuss the fourth quarter results. To participate in the conference call use the following dial-in numbers: