Sandstorm Metals & Energy Ltd.
TSX VENTURE : SND

Sandstorm Metals & Energy Ltd.

August 29, 2011 13:12 ET

Sandstorm Metals & Energy Announces US$15 Million Payment to Thunderbird Energy

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2011) - Sandstorm Metals & Energy Ltd. ("Sandstorm Energy" or the "Company") (TSX VENTURE:SND) has completed a US$15 million payment to Thunderbird Energy Corp. ("Thunderbird") (TSX VENTURE:TBD) in accordance with the natural gas purchase agreement announced on July 13, 2011. Under the terms of the agreement, Sandstorm Energy is entitled to purchase 35% of all natural gas produced from the Gordon Creek project located in Utah, USA. Sandstorm Energy will purchase the natural gas at a price equal to the lesser of the prevailing market price and US$1.00 per Mcf of gas delivered plus 20% of the market price received above US$4.00 per Mcf.

Sandstorm Energy's payment to Thunderbird was made with cash on hand and is the first of two payments totaling US$25 million. The second $10 million payment will be remitted on May 15, 2012.

Thunderbird will be using the proceeds for the development of the Gordon Creek project which will include drilling 50 new wells and the completion of workover operations on five existing wells. For more information on Thunderbird or the Gordon Creek project, please visit www.thunderbirdenergy.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., Royal Coal Corp., Terrex Energy Inc., Donner Metals Ltd. and Thunderbird Energy Corp.

For more information visit: http://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 gold 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; competition; as well as those factors discussed in the section entitled "Risks to Sandstorm" in Sandstorm Energy's annual report for the financial year ended December 31, 2010. 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, Silver Wheaton Corp., Royal Gold, Inc., and Franco-Nevada Corporation.

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.

Contact Information

  • Sandstorm Metals & Energy Ltd.
    Nolan Watson
    President and Chief Executive Officer
    (604) 628-1178

    Sandstorm Metals & Energy Ltd.
    Denver Harris
    Investor Relations Contact
    (604) 628-1178
    www.sandstormmetalsandenergy.com