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Press Release

Sandstorm Metals & Energy Provides Bracemac-McLeod Development Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 5, 2012) - Sandstorm Metals & Energy Ltd. ("Sandstorm" or the "Company") (TSX VENTURE:SND) is pleased to announce positive developments for the Bracemac-McLeod Mine ("Bracemac-McLeod") as reported by Donner Metals Ltd. ("Donner") (TSX VENTURE:DON), who is a joint venture partner with project operator Xstrata Canada Corporation-Xstrata Zinc Canada Division ("Xstrata Zinc"). Xstrata Zinc has revised the mine design at Bracemac-McLeod to allow production at a rate of 3,000 tonnes per day during the first two years of operation, compared to an average of 2,250 tonnes per day in the feasibility study. The addition of a ball mill will allow for the increased tonnage through the mill and will provide capacity for incremental tonnage identified in and around Bracemac-McLeod. The additional mining and milling rate will increase cash flows in each of the first two years of operation.
Construction at the Bracemac-McLeod mine has successfully transitioned from single-face development in the main access ramp to multi-face development. Even though advancement has yet to reach the targeted rate, the number of mining fronts is increasing and should reach 10 or 11 fronts in July. Total advancement now stands at 4,304 metres. Initial production is scheduled to begin in the first quarter of 2013.
Sandstorm has a copper stream agreement with Donner to purchase 17.5% of the life of mine copper produced from Bracemac-McLeod at an ongoing per pound price of US$0.80 (if the copper price falls below US$2.75 per pound, Sandstorm's ongoing price per pound drops to US$0.55). In accordance with the copper stream agreement announced on July 13, 2011, Sandstorm recently remitted a final US$5 million payment to Donner and received US$1.4 million of Donner's common shares.
Normand Champigny (President) is a Qualified Person for Donner Metals Ltd. and is responsible for the technical information reported in this news release.
For more information on Donner Metals and the Bracemac-McLeod mine, please visit www.donnermetals.com.
ABOUT SANDSTORM METALS & ENERGY
Sandstorm Metals & Energy Ltd. is a growth focused resource based company that seeks to complete commodity purchase agreements with companies that have advanced stage development or operating projects. A commodity 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 commodity produced for the life of the asset, at a fixed price per unit. Sandstorm helps other companies in the resource industry grow their business, while acquiring attractive assets in the process.
Sandstorm Metals & Energy is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed commodity purchase agreements with Novadx Ventures Corp., Terrex Energy Inc., Donner Metals Ltd. and Thunderbird Energy Corp.
For more information visit: www.sandstormmetalsandenergy.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans", or similar terminology. Forward-looking information is based on reasonable assumptions that have been made by Sandstorm as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Sandstorm to be materially different from those expressed or implied by the forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over operations from which Sandstorm will purchase commodities and risks related to those operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; problems inherent to the marketability of commodities; industry conditions, including fluctuations in the price of commodities, fluctuations in foreign exchange rates and fluctuations in interest rates; stock market volatility; competition; as well as those factors discussed in the section entitled "Risks to Sandstorm" in Sandstorm's annual report for the financial year ended December 31, 2011. Although Sandstorm has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Sandstorm does not undertake to update any forward-looking information that is contained or incorporated by reference herein, except in accordance with applicable securities laws. Sandstorm does not provide any representation as to its comparability with other companies in its industry including, but not limited to, Franco-Nevada Corporation, BHP Billiton, and Rio Tinto.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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