SND Sandstorm Metals And Energy Ltd

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 Corporation, BHP Billiton and Rio Tinto.


FOR FURTHER INFORMATION PLEASE CONTACT: 
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

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