Vancouver, British Columbia, June 6, 2011 - Sandstorm Gold Ltd. ("Sandstorm") (TSX-V: SSL) is pleased to announce that drilling from the Aurizona Mine, owned and operated by Luna Gold Corp. ("Luna") (TSX-V: LGC) has reported positive assay results from six new holes. Significant mineralized intercepts are:
48.00 metres @ 3.29 grams/tonne Au including 12.00 metres @ 7.93 grams/tonne Au and 1.00 metre @ 9.84 grams/tonne Au in BRAZD299
11.00 metres @ 15.48 grams/tonne Au including 0.50 metres @ 20.60 grams/tonne Au and 0.50 metres @ 282.00 grams/tonne Au in BRAZD294
56.00 metres @ 1.92 grams/tonne Au including 15.00 metres @ 3.22 grams/tonne Au and 3.00 metres @ 6.81 grams/tonne Au in BRAZD296

"The continuation of positive drill results from Aurizona is another step in Luna expanding their reserves and resources adjacent to the current Piaba pit," said Sandstorm President & CEO Nolan Watson. "Luna has completed less than half of its planned drilling and we are very excited with the results thus far."

Of the current 20,000 meter drill program, which commenced in August 2010, assays from 31 holes totaling 8,432 meters have been received by Luna and samples from 18 additional holes are currently at the assay lab. Drilling is currently focused on infilling over the 3 kilometer strike length of the Piaba deposit to increase measured and indicated resources.

In accordance with Sandstorm's gold purchase agreement with Luna, Sandstorm is entitled to purchase 17% of the life of mine gold produced from the Aurizona Mine at a per ounce price equal to the lesser of US$400 and the then prevailing market price.

For more information visit the Luna website at www.lunagold.com. Significant mineralized intercepts are tabulated below.

SECTION HOLE ID AZI DIP START DEPTH (M) END DEPTH (M) FROM (M) TO (M) INT (M) AU (G/T) UNCAPPED
500W BRAZD303 168 -50 100.00 299.45 208.00 214.00 6.00 1.94
223.00 242.00 19.00 1.10
INCLUDING 229.00 230.00 1.00 5.48
700W BRAZD302 168 -53 100.00 290.35 172.00 194.00 22.00 2.20
INCLUDING 181.00 181.50 0.50 56.50
198.00 207.00 9.00 1.67
210.00 220.00 10.00 0.89
800W BRAZD299 168 -74 100.00 396.60 295.00 343.00 48.00 3.29
INCLUDING 313.00 325.00 12.00 7.93
AND 337.00 338.00 1.00 9.84
1000W BRAZD294 168 -71 100.00 352.45 217.00 228.00 11.00 15.48
INCLUDING 218.00 218.50 0.50 20.60
AND 227.00 227.50 0.50 282.00
232.00 252.00 20.00 1.25
1100W BRAZD305 168 -50 0.00 230.35 94.00 114.00 20.00 1.65
117.00 138.00 21.00 1.85
170.00 171.50 1.50 40.83
1400W BRAZD296 168 -74 0.00 249.80 166.00 222.00 56.00 1.92
INCLUDING 168.00 183.00 15.00 3.22
AND 197.00 200.00 3.00 6.81
219.00 220.00 1.00 8.06
Mineralized drill intercepts from the ongoing Aurizona resource drill program. Intervals are calculated as composites using a 0.30 gram/tonne Au cut-off and maximum 2 meter internal waste. True widths to be established.

Titus Haggan Ph.D., EurGeol Certified Professional Geologist #746, Luna's VP Exploration is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and has supervised the preparation of and reviewed the technical disclosure in this press release. Non-Qualified Persons currently work on Luna's exploration programs under the guidance of Titus Haggan. Dr Haggan takes responsibility for work, information and advice generated by non-Qualified Persons and has taken the steps required to ensure that the work, information and advice is sound.

ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a growth focused resource based company that seeks to complete gold purchase agreements with companies that have advanced stage development projects or operating mines. A gold purchase agreement involves Sandstorm making an upfront cash payment to its partners and in exchange, Sandstorm receives the right to purchase a percentage of the gold produced for the life of the mine, at a fixed price per ounce. Sandstorm helps other companies in the resource industry grow their business, while acquiring attractive assets in the process.

Sandstorm is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed gold purchase agreements with Luna Gold Corp., SilverCrest Mines Inc., Santa Fe Gold Corp., Rambler Metals and Mining plc, Brigus Gold Corp. and Metanor Resources Inc. For more information visit: http://www.sandstormgold.com