Sandstorm Resources Ltd.
TSX VENTURE : SSL

Sandstorm Resources Ltd.

December 14, 2010 09:30 ET

Sandstorm Partner Luna Gold Drills 32 Metres of 3.2 g/t Gold at Aurizona Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 14, 2010) - Sandstorm Resources Ltd. ("Sandstorm" or the "Company") (TSX VENTURE:SSL) is pleased to announce drilling results from the Aurizona Mine owned and operated by Luna Gold Corp. ("Luna") (TSX VENTURE:LGC). In accordance with Sandstorm's gold purchase agreement with Luna, Sandstorm is entitled to purchase 17% of the life of mine gold produced from the Aurizona mine at a per ounce price equal to the lesser of US$400 and the then prevailing market price. Assay results from the first seven drill holes of the exploration program begun in September 2010 have been released with positive results. An updated drill map is available on the Luna website at www.lunagold.com. Significant mineralized intercepts are highlighted below:

  • 15.00 m @ 2.66 g/t Au including 4.00 m @ 7.49 g/t Au in BRAZD278
  • 30.00 m @ 1.32 g/t Au including 1.00 m @ 7.37 g/t Au and 3.00 m @ 5.06 g/t Au in BRAZD279A
  • 32.00 m @ 3.20 g/t Au including 1.00 m @ 60.60 g/t Au and 16.00 m @ 2.13 g/t Au including 4.00 m @ 6.57 g/t Au and 6.00 m @ 2.87 g/t Au in BRAZD282
  • 5.00 m @ 4.45 g/t Au and 7.00 m @ 2.01 g/t Au including 1.00 m @ 9.74 g/t Au in BRAZD283

"These drill results demonstrate the continuity and the potential size of the Aurizona Mine," stated Nolan Watson, President and Chief Executive Officer of Sandstorm, "Luna's extensive exploration program started earlier this year is expected to continue producing results on Piaba and a number of other targets within the Aurizona Main area under which the Sandstorm gold stream agreement applies."

The 2010 drill program commenced at the start of September and the Company currently has five rigs in operation. Drilling is currently focused on infilling over the 3 kilometer strike length of the Piaba deposit to increase measured and indicated resources. Holes are being drilled on 100 meter spaced sections to a maximum depth of 300 meters.

Complete assay results have been received for seven drill holes totaling approximately 2,379 metres drilled on three sections, spaced 200 metres apart in the central portion of the Piaba deposit. All drill holes intersected gold mineralization and the deposit remains open at depth on all sections. Significant mineralized intercepts of all seven holes are below:

To view the table associated with this press release, please visit the following link: http://media3.marketwire.com/docs/ssl_12_14_2010_table.pdf

Titus Haggan Ph.D., EurGeol Certified Professional Geologist #746, Luna's VP Exploration is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and has supervised the preparation of and reviewed the technical disclosure in this press release. Non qualified persons currently work on Luna's exploration programs under the guidance of Titus Haggan. Dr Haggan takes responsibility for work, information and advice generated by non-Qualified persons and has taken the steps required to ensure that the work, information and advice is sound.

ABOUT SANDSTORM RESOURCES

Sandstorm Resources Ltd. is a growth focused resource based company that seeks to complete transactions with companies that have advanced stage development projects or operating mines. By making upfront payments to its partners, Sandstorm receives gold purchase agreements (i.e. metal stream deals). Sandstorm helps other companies in the resource industry grow their businesses, while acquiring attractive assets in the process.

Sandstorm is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed gold purchase agreements with Luna Gold Corp., SilverCrest Mines Inc., Santa Fe Gold Corporation, Rambler Metals and Mining plc and Brigus Gold Corp. For more information visit: www.sandstormresources.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 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 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 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 "Risk Factors" in Sandstorm's annual information form for the financial year ended December 31, 2009. Although Sandstorm 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 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 does not provide any representation as to its comparability with other companies in its industry including, but not limited to, Gold Wheaton Gold Corp., 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.

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