Sandstorm Metals & Energy Provides Update on Gordon Creek Development Program

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/20/12 --Sandstorm Metals & Energy Ltd. ("Sandstorm") (TSX VENTURE: SND) is pleased to announce that Thunderbird Energy Corp. ("Thunderbird") (TSX VENTURE: TBD) has commenced production from the eight new wells that were the subject of the Gordon Creek fall 2012 completion program. Gordon Creek field volumes have recently averaged 5,265 mcf/day of raw natural gas (4,975 mcf/day sales gas). Of this total, approximately 4,200 mcf/day of raw natural gas (3,970 sales) is coming from the eight new wells, and Sandstorm's net share of recent sales rates has been 1,640 mcf/day.

The original expectation for the eight new wells, based on the analog wells producing at the adjacent Drunkard's Wash field, was a first year average raw gas production rate of 460 mcf/day per well. Initial indications are that the current eight well program is going to exceed this expectation and it is believed that the greater than anticipated pay thicknesses and porosities in the northwest area of the Gordon Creek project are likely a significant factor in this result.

Thunderbird will be in a position to assess the peak potential of the new wells once the frac fluids have been recovered and the coals dewatered. Depending on the relative contribution of gas production from sand pay versus coal pay, some wells could reach their peak production relatively quickly while some wells could take over six months to reach maximum production rates.

With the experience garnered from the initial eight new drills, the better than expected initial productivity and the necessary support infrastructure now in place, Thunderbird is looking to an expanded 2013 Gordon Creek development program that will be focused almost exclusively on drilling additional wells. Thunderbird anticipates providing a further production and development update in the coming months.

Sandstorm has a natural gas stream agreement with Thunderbird to purchase 35% of all natural gas produced from the first 50 wells drilled at Gordon Creek with an option to participate in additional wells. Sandstorm will purchase the natural gas at US$1.00 per mcf of gas delivered plus 20% of the market price received above US$4.00 per mcf.


ABOUT SANDSTORM METALS & ENERGY

Sandstorm Metals & Energy Ltd. is the world's first diversified streaming company. Sandstorm provides upfront financing to resource companies that are looking for capital and in return, receives a commodity streaming agreement. This agreement gives Sandstorm the right to purchase a percentage of the commodity produced, for the life of the asset, at a fixed price. Sandstorm has acquired a portfolio of seven commodity streams in copper, palladium, oil, natural gas and coal. Sandstorm plans to grow its production base through the acquisition of additional commodity streams.

Sandstorm Metals & Energy is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed commodity purchase agreements with Colossus Minerals Inc., Donner Metals Ltd., Novadx Ventures Corp., Terrex Energy Inc., and Thunderbird Energy 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" or "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans", or similar terminology. 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 operations from which Sandstorm will purchase commodities 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 commodities; industry conditions, including fluctuations in the price of commodities, 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's annual report for the financial year ended December 31, 2011. 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, Franco-Nevada Corp., BHP Billiton and Rio Tinto.

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.



Contacts:

Sandstorm Metals & Energy Ltd.
Nolan Watson, President & Chief Executive Officer
(604) 689-0234

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