This management’s discussion and analysis (“MD&A”) for Sandstorm Metals & Energy Ltd. (“Sandstorm” or “the Company”)
should be read in conjunction with the unaudited interim condensed consolidated nancial statements of Sandstorm for the
three and six months ended June 30, 2011 and related notes thereto which have been prepared in accordance with
International Accounting Standard (“IAS”) 34: Interim Financial Reporting as issued by the International Accounting Standards
Board (“IASB”). Previously, the Company prepared its interim and annual condensed consolidated nancial statements in
accordance with Canadian generally accepted accounting principles (“GAAP”). The Company’s 2010 comparatives in this
MD&A are presented in accordance with International Financial Reporting Standards (“IFRS”). The information contained
within this MD&A is current to August 23, 2011 and is stated in U.S. dollars unless otherwise noted.
HIGHLIGHTS
• During the three months ended June 30, 2011 Sandstorm purchased and sold 18,416 tons of coal (11,760 tons – three
months ended March 31, 2011). Coal sales are expected to increase signicantly by the end of 2011 as the Company
expects to begin purchasing and selling coal from the SID Mine, the Big Branch Extension, the Rosa Mine, the Rex No. 1
Mine, and the Ikerd Mines by the end of the year or early 2012.
• Sandstorm received its first oil and gas shipments from Terrex Energy Inc.’s Two Creek and Strathmore properties resulting
in 3,774 barrels of oil purchased and sold during the three months ending June 30, 2011. Oil and gas sales are expected
to increase signicantly once Terrex Energy Inc. implements the polymer ood at the Strathmore Property in 2012.
• On July 13, 2011, the Company entered into an Energy Stream agreement with Thunderbird Energy Corporation to
purchase 35% of all natural gas for the life of the Gordon Creek property.
• On July 12, 2011, the Company entered into a Copper Stream agreement with Donner Metals Ltd. to purchase 17.5% of
all copper for the life of mine at the Bracemac-McLeod property. This stream marks the Company’s entrance into the
copper sector and continues the Company’s diversication of commodity exposure within a strong portfolio of stream
agreements.
• On August 3, 2011, the Company completed an equity financing for gross proceeds of C$48.8 million.

OVERVIEW
The Company is a growth focused company that seeks to acquire base
metal and energy purchase agreements (a “Metal Stream” or an “Energy
Stream” or a “Commodity Stream”) from companies that have advanced
stage development projects or operating mines. In return for making
upfront payments to acquire a Commodity Stream, Sandstorm receives
the right to purchase, at a xed price per unit, a percentage of a
project’s production for the life of the project. Sandstorm helps other
companies in the resource industry grow their businesses, while
acquiring attractive assets in the process. The Company is focused on
acquiring Commodity Streams from projects with low production costs,
signicant exploration potential and strong management teams. The
Company currently has ten Commodity Streams.