Sandstorm Metals & Energy Ltd.
TSX VENTURE : SND

Sandstorm Metals & Energy Ltd.

February 14, 2011 09:25 ET

Sandstorm Metals & Energy Advances US$25 Million to Novadx

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 14, 2011) - Sandstorm Metals & Energy Ltd. ("Sandstorm Energy" or the "Corporation") (TSX VENTURE:SND) has advanced US$25 million to Novadx Ventures Corp. ("Novadx") (TSX VENTURE:NDX) in accordance with the coal purchase agreement previously announced on November 26, 2010. With this transfer of funds, Sandstorm Energy has advanced US$30 million of the US$38 million upfront payment that is owed to Novadx. The remaining US$8 million is subject to funding conditions which Novadx is expected to complete in the near future.

Sandstorm Energy has a purchase agreement with Novadx to acquire 25% of the first 3,800,000 tons of metallurgical equivalent coal produced and 16% of the life of mine metallurgical equivalent coal produced thereafter from the Rosa Mine, the Rex No. 1 Mine and the Ikerd Mines.

For more information on Novadx, visit www.novadx.com.

ABOUT SANDSTORM METALS & ENERGY

Sandstorm Metals & Energy Ltd. is a growth focused resource based company that seeks to complete commodity purchase agreements (i.e. metal streaming deals) with companies that have advanced stage development projects or operating mines. A commodity purchase agreement involves Sandstorm making an upfront cash payment to its partners and in exchange, Sandstorm Energy 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 is focused on low cost, profitable operations with excellent exploration potential and management teams focused on accretive growth in politically stable jurisdictions. Sandstorm has completed energy purchase agreements with Novadx Ventures Corp. and Royal Coal 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" within the meaning of applicable Canadian securities legislation. Forward-looking information is based on reasonable assumptions that have been made by Sandstorm Energy 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 Energy 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 mining operations from which Sandstorm Energy will purchase coal and risks related to those mining 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 minerals; industry conditions, including fluctuations in the price of metals, fluctuations in foreign exchange rates and fluctuations in interest rates; stock market volatility and competition. Although Sandstorm Energy 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 Energy 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 Energy 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, Rio Tinto and Western Coal.

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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