Vancouver, British Columbia, September 30, 2010 - Sandstorm Resources Ltd. ("Sandstorm") (TSX-V: SSL) is pleased to provide gold production updates on the Santa Elena Mine, operated by SilverCrest Mines Inc. ("SilverCrest") and the Summit Mine, operated by Santa Fe Gold Corp ("Santa Fe").

SilverCrest recently poured its first gold and silver doré from the Santa Elena Mine, and sales are expected to begin imminently. The mine is currently being operated near its capacity and SilverCrest anticipates that it will be operating at full capacity by the end of this year. Sandstorm is entitled to purchase 20% of the life of mine gold produced at the Santa Elena Mine at a per ounce price equal to the lesser of USD$350 and the then prevailing market price.

In addition to the success that is being achieved by SilverCrest at its Santa Elena Mine, Sandstorm is pleased to announce that Santa Fe has continued to increase production at its Summit Mine and has begun shipping its gold-silver concentrate to a European smelter. Sandstorm is entitled to purchase 50% of the first 10,000 ounces of gold produced, and 22% of the gold produced thereafter, from the Summit Mine at a per ounce price equal to the lesser of USD$400 and the then prevailing market price.

President and CEO Nolan Watson commented, "With three mines now in production, Sandstorm has officially transformed into a cash flowing company and will be receiving regular deliveries of gold going forward. It is an exciting time in the development of our company."

ABOUT SANDSTORM RESOURCES

Sandstorm Resources Ltd. is a growth focused resource based company that seeks to complete transactions with companies that have advanced stage development projects or operating mines. By making upfront payments to its partners, Sandstorm Resources receives volume based production payments (i.e. metal stream deals) on precious metals. Sandstorm Resources helps other companies in the resource industry grow their businesses, while acquiring attractive precious metal assets in the process.

Sandstorm Resources is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed volume based production payments with Luna Gold Corp., SilverCrest Mines Inc., Santa Fe Gold Corporation and Rambler Metals and Mining plc. For more information visit: http://www.sandstormresources.com