sandstorm metals and energy presentation

8/6/2019 Sandstorm Metals and Energy Presentation

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April 2011

TSX.V: SND


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ABOUT SANDSTORM METALS & ENERGY

SANDSTORM METALS & ENERGY WAS SPUN OUT OF SANDSTORMRESOURCES LTD. (TSX-V: SSL)

24 months ago Sandstorm Resources was a shell company with a$4 million market cap and is now a diversified gold streamingcompany with a $290M market cap

FOCUSED ON AGGRESSIVE GROWTH BY ACQUIRING:

Energy Streams (Coal, Oil, Natural Gas, Uranium, Geothermal etc.)

Base Metal Streams (Copper, Nickel, Zinc, Lead etc.)

Bulk Commodity Streams (Iron Ore etc.)

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MANAGEMENT & BOARD

Management

, ,

David Awram (B.Sc, Geologist) EVP, former Director of IR at Silver Wheaton

Justin Cochrane (CFA) EVP, former VP at National Bank Financial

Claudia Tornquist EVP, former GM of Bus. Eval. at Rio Tinto

Dan Gundersen (P. Eng.)VP, former VP Engineering at DeeThree

Exploration

John BudreskiVice-Chairman, Cormark SecuritiesFormer President & CEO of Orion Securities

Director of Bear Creek, Nautilus Minerals,av eFormer Director of Arequipa and Peru Copper

Andy Swarthout President & CEO of Bear Creek Mining

Marcel de Groot Chairman of Luna Gold Corp.

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COAL STREAM & ROYALTY ACQUISITIONS

SANDSTORM HAS ACQUIRED SIX COAL STREAMS & TWO OILSTREAMS

1. Three Coal Streams from NovaDX - US$38 Million

2. Three Coal Streams from Royal Coal - US$11 Million

3. A 2.7% Ro alt on all assets from Ro al Coal US 3 Million

4. Two Oil Streams from Terrex Energy - $15 Million

After these acquisitions, Sandstorm still has US$21M forfuture acquisitions.

After these acquisitions, Sandstorm still has US$21M forfuture acquisitions.

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NAV BY COMMODITY

Sandstorm Metals & Energy will

US$75 per ton, thermal coal for

US$55 per ton, and oil for $15/bbl(plus transport costs &

50%30%.

Current contract prices for Metcoal are in excess of $200/t and for

Met Coal Thermal Coal Oil

erma coa are n excess oUS$70 /t.

50 % of the Value is fromMetallurgical Coal Streams.

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CURRENT STREAMS

Oil Streams in Alberta

Coal Streams in Tennessee, Alabama andKentucky

100% OF ASSETSIN POLITICALLY STABLE

.

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TERREX ENERGY: ENHANCED OIL RECOVERY

Two Creek

, Status EOR / Chemical flood implementation within 30 months

Production Peak production of 70k bbl/yr by 2014

Cash Flow Guarantee Guaranteed payback, plus penalties if EOR is delayed.

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MCOAL: HIGH VALUE COAL IN IDEAL LOCATION

Rex No.1 Mine

, Status Under development, expected to be complete by end of 2011

Production 500k tons per annum (2P reserves of 32M tons)

, ,

Cash Flow Guarantee Guaranteed payback in 5 years

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MCOAL: HIGH VALUE COAL IN IDEAL LOCATION

Rosa Mine Asset Auger Met Coal mine in Alabama, USA Status In production. Wash plant being constructed expected to be complete

by end of 2011 Production 150k tons per annum Coal Stream Terms 25% for several years, decreasing to 16% at $75/t Cash Flow Guarantee Guaranteed payback in 5 yearsIkerd Properties , ,

coal mines in Kentucky, USA Status Mix of operating and soon to be operating Production 320k tons per annum

, Cash Flow Guarantee Guaranteed payback in 5 years

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ROYAL COAL CURRENT PRODUCTION

Big Branch & Big Branch Extension

Asset Hi h ualit 12 500btu+ low sulfur thermal coal mine in Kentuck Status In production at Big Branch. Currently developing Big Branch

Extension Production 500k tons per annum increasing to 800k tons per annum

Coal Stream Terms 18% for several years, decreasing to 12% at $55/t

Cash Flow Guarantee Guaranteed payback in 5 years

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ROYAL COAL HIGH QUALITY NEAR TERM

SID Mine sse g qua y , u+ ow su ur erma coa m ne n en uc y Status Beginning development. Completion expected by end of 2011 Production 500k tons per annum

oa ream erms or severa years, ecreas ng o a

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COAL STREAMS: SIGNIFICANT CASH FLOW

Production for 2014NovaDXMet Coal

NovaDXThermal Coal

Royal CoalThermal Coal

Terrex Total

Production

490 kt 477 kt 1,360 kt 350 k bbl

Sandstorm %25%

droppingto 16%

25%dropping to

16%

18%dropping to 12%

+2.7% GOR

25% Two Creek15% Strathmore

= 20% Avg

Sandstorm Production 122 kt 112 kt 281 kt 65 k bbl

Sandstorm Revenue(US$185/t Met Coal, US$80 / tThermal Coal, $100 Oil)

US$22.7 M US$9.0 M US$22.5 M US$6.5 M US$60.7 M

Sandstorm Costs(US$75/t Met Coal, US$55/tThermal Coal, $15 Oil + royalty)

(US$9.2 M) (US$6.2 M) (US$15.5 M) (US$2.6 M) (US$33.5 M)

Sandstorm Before Tax

Before Tax Operating Cash Flow = $27MBefore Tax Operating Cash Flow = $27M

Cash Flow. . . . .

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ESTIMATED BEFORE TAX OPERATING

$50

$30

$40

xCash

Flo

illions)

US$250/t Met Coal, US$120/t Thermal Coal, $120 Oil

$10

$20

st.BeforeT

(USDm

US$185/t Met Coal, US$80/t Thermal Coal, $100 Oil

$0

2011 2012 2013 2014

, ,

With an increasing coal price environment,these Coal Streams can generate significant annual cash flow.

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ESTIMATED BEFORE TAX FREE CASH FLOW

Number ExercisePrice

CurrentOutstandin

Treasury Stock DilutionCalculation

Shares Issued & Outstanding 229M n/a 229M 229M

Options 7M US$0.56 n/a 0M

Warrants (expire December 23,2012)

111M US$0.70 n/a 0M

Total Pro-Forma 229M 229M

The US$0.70 warrants trade under the symbol SND.WT

Exercise of warrants and options would bring in approx. US$78M

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CONCLUSIONS

6 Coal Streams and 2 Oil Streams provide the following characteristics:

Immediate cash flow

Primary exposure to metallurgical coal Significant future cash flow growth / expansion

Significant asset risk diversification

Company risk diversification

$21M for future acquisitions

Contractually guaranteed payback of 5 years, on 20+ year coal assets

The first step in the creation of a large diversified,world class, cash flowing company.

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