Sandstorm Gold Ltd. (NYSE: SAND) (TSX: SSL) is pleased to report that the Company sold approximately 82,400 attributable gold equivalent ounces¹ and realized preliminary revenue² of $148.7 million for the full 2022 year, both representing a record for the Company (67,548 attributable gold equivalent ounces and $114.9 million in revenue for the comparable period in 2021). Preliminary cost of sales, excluding depletion² for the full 2022 year was $23.4 million resulting in cash operating margins¹ of approximately $1,511 per attributable gold equivalent ounce¹ ($16.8 million and $1,539 per attributable gold equivalent ounce for the comparable period in 2021, respectively).

During the three months ended December 31, 2022, the Company sold approximately 21,800 attributable gold equivalent ounces¹ and realized preliminary revenue² of $38.4 million (16,586 attributable gold equivalent ounces and $29.8 million in revenue for the comparable period in 2021). Preliminary cost of sales, excluding depletion² for the three month period was $5.5 million resulting in cash operating margins¹ of approximately $1,493 per attributable gold equivalent ounce¹ ($3.7 million and $1,574 per attributable gold equivalent ounce for the comparable period in 2021, respectively).

These results should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2022, as and when released.

Note 1

Sandstorm Gold Royalties has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards including (i) attributable gold equivalent ounces and (ii) cash operating margin. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS measures differently. Note these figures have not been audited and are subject to change. (i) As the Company’s operations are primarily focused on precious metals, the Company presents attributable gold equivalent ounces as it believes that certain investors use this information to evaluate the Company’s performance in comparison to other mining companies in the precious metals mining industry who present results on a similar basis. Attributable Gold Equivalent ounces is a non-IFRS financial ratio that uses Total Sales, Royalties, and Income from Other Interests as a component. Total Sales, Royalties and Income from Other Interests is a non-IFRS financial measure and is calculated by taking total revenue which includes Sales and Royalty Revenue, and adding contractual income relating to royalties, streams and other interests excluding gains and losses on dispositions. Attributable Gold Equivalent ounces is calculated by dividing the Company’s Total Sales, Royalties, and Income from other interests, less revenue attributable to non-controlling shareholders for the period, by the average realized gold price per ounce from the Company’s Gold streams for the same respective period ([$148.7 million – $0.8 million]/$1,795 average realized gold price for the full year 2022 and $114.9 million/$1,788 average realized gold price for the comparable period in 2021); ([$38.4 million – $0.5 million]/$1,746 average realized gold price for the three months ended December 31, 2022, and $29.8 million/$1,798 average realized gold price for the comparable period in 2021) and may be subject to change. (ii) The Company presents cash operating margin as it believes that certain investors use this information to evaluate the Company’s performance in comparison to other companies in the precious metals mining industry who present results on a similar basis. Cash operating margin is calculated by subtracting average cash cost per Attributable Gold Equivalent ounce from the average realized gold price per ounce from the Company’s Gold streams (see item i above) for the same respective period. Average cash cost per Attributable Gold Equivalent ounce is calculated by dividing the Company’s cost of sales, excluding depletion, by the number of Attributable Gold Equivalent ounces ($23.4 million/82,400 Attributable Gold Equivalent ounces for the full year 2022 and $16.8 million/67,548 Attributable Gold Equivalent ounces for the comparable period in 2021); ($5.5 million/21,800 Attributable Gold Equivalent ounces for the three months ended December 31, 2022, and $3.7 million/16,586 Attributable Gold Equivalent ounces for the comparable period in 2021).

Note 2

These figures have not been audited and are subject to change. As the Company has not yet finished its quarter-end close procedures, the anticipated financial information presented in this press release is preliminary, subject to final quarter and year-end closing adjustments, and may change materially.

ABOUT SANDSTORM GOLD ROYALTIES

Sandstorm is a gold royalty company that provides upfront financing to gold mining companies that are looking for capital and in return, receives the right to a percentage of the gold produced from a mine, for the life of the mine. Sandstorm holds a portfolio of 250 royalties, of which 39 of the underlying mines are producing. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold royalties.