Sandstorm Metals & Energy Ltd.
TSX VENTURE : SND

Sandstorm Metals & Energy Ltd.

July 25, 2011 09:05 ET

Sandstorm Metals & Energy Announces US$20 Million Payment to Donner Metals

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 25, 2011) - Sandstorm Metals & Energy Ltd. (TSX VENTURE:SND) ("Sandstorm Metals") has completed a US$20 million payment to Donner Metals Ltd. (TSX VENTURE:DON) ("Donner") in accordance with the copper purchase agreement announced on July 13, 2011. Under the terms of the agreement, Sandstorm Metals is entitled to purchase an amount equal to 17.5% of the life of mine copper produced from the Bracemac-McLeod Property which is operated by Xstrata Canada Corporation. Sandstorm Metals will purchase the copper at a per pound price equal to the lesser of US$0.80 and the then prevailing market price of copper unless the price of copper falls below US$2.75 per pound, in which case the per pound price will be equal to the lesser of US$0.55 and the then prevailing market price of copper.

Sandstorm Metal's payment to Donner was made with cash on hand, US$17.75 million as an upfront payment and the remaining US$2.25 million coming from the purchase of 6,428,571 common shares of Donner at US$0.35 per share.

Donner will be using the proceeds for the development of the Bracemac-McLeod Property located in Matagami, Québec. For more information on Donner Metals or the Bracemac-McLeod Property, 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 projects or operating projects. A commodity purchase agreement involves Sandstorm Metals & Energy making an upfront cash payment to its partners and in exchange, Sandstorm Metals & 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 Metals & Energy 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 Metals & Energy 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 Metals & 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 Metals & 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 and oil and gas operations from which Sandstorm Metals & Energy will purchase coal, copper and oil and gas 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 minerals; industry conditions, including fluctuations in the price of metals, coal and oil and gas, fluctuations in foreign exchange rates and fluctuations in interest rates; stock market volatility and competition. Although Sandstorm Metals & 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 Metals & 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 Metals & 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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