Mr. Erfan Kazemi reports

SANDSTORM GOLD ANNOUNCES RECORD GOLD SALES AND CASH FLOW FROM OPERATIONS OF US$8.6 MILLION

Sandstorm Gold Ltd. has released its unaudited results for the third quarter ended Sept. 30, 2011. All figures are in U.S. dollars.

Third Quarter Highlights



-- Record operating cash flow of $8.6 million, a 223% increase from the

previous quarter





-- Record gold sales of 5,561 ounces, a 50% increase from the previous

quarter





-- Net earnings were $4.4 million, a 90% increase from the previous quarter





-- The Company completed a gold stream with Donner Metals Ltd. to purchase

17.5% of the life of mine gold produced from the Bracemac-McLeod

development project at $350 per ounce





-- Gold production reached feasibility levels at both the Aurizona Mine and

the Santa Elena Mine





-- Significant progress has been made on the development of the Ming Mine,

which is expected to begin operating by early 2012



"A significant ramp up in gold production at multiple mines together with an all-time high average realized gold price has resulted in exceptionally strong operating cash flows for Sandstorm," said President and CEO, Nolan Watson. "With our cash on hand and robust future operating cash flows, we are well positioned to continue to grow the company through the acquisition of additional gold streams."

Financial Results

Revenues

Sandstorm recognized revenue of $9.6 million in the third quarter of 2011, representing a 71% increase from the $5.6 million revenue generated in the second quarter of 2011. Increasing production at the Aurizona Mine, Black Fox Mine and Santa Elena resulted in the sales of 5,561 ounces of gold, an increase of 50% from the previous quarter.

Costs and Expenses

Average cash cost per ounce1 in the third quarter of 2011 was $428 per ounce which resulted in cash operating margins of $1,297 per ounce.

Earnings and Operating Cash Flow

Net earnings in the third quarter of 2011 were up 90% at $4.4 million, compared to $2.3 million in the second quarter of 2011. Cash flow from operations was $8.6 million, compared to $2.6 million for the second quarter of 2011; a 223% increase. The increase in net earnings and operating cash flow is attributable to a combination of factors including a 50% increase in gold ounces purchased and sold from the Aurizona Mine, Black Fox Mine and Santa Elena Mine as well as a 15% increase in the average realized selling price of gold.

Balance Sheet and Capital Resources

As of September 30, 2011, Sandstorm had cash of $10.7 million and working capital of $10.2 million. Sandstorm intends to utilize its cash on hand and cash flow from operations to complete additional gold streaming transactions.

Operations Highlights

Producing Assets

Luna Gold Corp.'s ("Luna") open-pit Aurizona Mine ("Aurizona") is located in Brazil. Aurizona has reached full feasibility production levels by achieving an average of 4,500 tonnes processed per day and producing approximately 13,500 ounces of gold.

The exploration team at Luna recently completed a 40,000 metre drill program which will be the basis for a National Instrument ("NI") 43-101 resource update in the fourth quarter of 2011. Recently released drilling results extending mineralization well beyond the current open pit boundaries have been reported in recent Luna press releases which are available at http://www.lunagold.com.

SilverCrest Mines Inc.'s ("SilverCrest") open-pit Santa Elena Mine ("Santa Elena") is located in Mexico. During the third quarter of 2011, Santa Elena reached full commercial production with 8,805 ounces of gold produced. The crushing circut is currently operating above the daily designed throughput capacity of 2,500 tonnes per day with an average of 2,755 tonnes per day during the quarter.

Brigus Gold Corp.'s ("Brigus") open pit and underground Black Fox Mine ("Black Fox") is located in Ontario, Canada. During the third quarter of 2011, Black Fox produced 16,838 ounces of gold. Brigus announced at the end of June that it was proceeding with an expansion of the Black Fox mill, which is expected to be completed and in service, during the first quarter of 2012. This initial expansion will increase processing capacity at the Black Fox mill to up to 2,200 tonnes per day.

Santa Fe Gold Corporation's ("Santa Fe") Summit Mine ("Summit") is located in the United States of America. During the third quarter of 2011, Sandstorm agreed to defer Santa Fe's production guarantee deadline in exchange for the sale of 700 ounces of gold plus an additional 3 ounces per day starting July 1, 2011. The Company received the 700 ounces of gold during the three months ended September 30, 2011.

Development Assets

Rambler Metals & Mining plc's ("Rambler") Ming Copper-Gold mine ("Ming Mine") is located in Canada. During the third quarter of 2011 Rambler received final construction approval from the Government of Newfoundland and Labrador for the Ming Mine. Rambler has begun commissioning of their copper concentrator facility and has completed the erection of its 9,500 wet metric tonne concentrate storage facility and initial ore processing is anticipated to begin in November 2011 through the gold hydromet circuit. Initial gold production is expected during the first quarter of 2012.

Metanor Resources Inc.'s ("Metanor") Bachelor Lake Gold Mine ("Bachelor Lake") is located in Quebec, Canada. Bachelor Lake is projected to produce an average of 60,000 ounces of gold per year and will be utilizing the low cost, long-hole mining method along with an existing, and fully functional, operating mill and surface infrastructure. Over this year, Bachelor Lake has completed the sinking of the shaft and begun the lateral underground development required for bulk sampling and production. In addition to this work, Metanor has undertaken a successful drilling program on the Bachelor Lake property. Production is expected to commence by the end of 2012.

Donner Metals Ltd. is the owner of a 35% joint venture interest in the Bracemac-McLeod Mine which is operated by Xstrata Canada Corporation. Xstrata plans to utilize the existing Matagami mill to produce concentrates of zinc and copper. The Bracemac-McLeod Mine will be an underground mine, accessed via a ramp, and is expected to begin ore production in early 2013. The Bracemac-McLeod ramp is currently passing 2,070 metres and is progressing well. Construction of access and haulage roads, mine support infrastructure and electrical supply has been mostly completed.

Further details of the individual gold streams can be found in the Management's Discussion and Analysis section of the third quarter, 2011 report and on the Company website.

Outlook
Sandstorm has increased its 2011 attributable gold production guidance as a result of the increasing production at Aurizona, Black Fox and Santa Elena. Forecasted 2011 attributable production is 16,000 to 18,000 ounces increasing to over 50,000 ounces of gold per annum by 2014. This growth is driven by the Company's portfolio of gold stream agreements with mines, all of which are either currently producing or expected to commence commercial production by 2014.