SANDSTORM METALS & ENERGY

April 2011
TSX.V: SND
 ABOUT SANDSTORM METALS & ENERGY

SANDSTORM METALS & ENERGY WAS SPUN OUT OF SANDSTORM

RESOURCES LTD. (TSX-V: SSL)
 24 months ago Sandstorm Resources was a shell company with a
$4 million market cap and is now a diversified gold streaming
company with a $290M market cap

FOCUSED ON AGGRESSIVE GROWTH BY ACQUIRING:

• Energy Streams (Coal, Oil, Natural Gas, Uranium, Geothermal etc.)
• Base Metal Streams (Copper, Nickel, Zinc, Lead etc.)
• Bulk Commodity Streams (Iron Ore etc.)

TSX.V: SND 2
 MANAGEMENT & BOARD
Management
Nolan Watson (CA,
(CA CFA) President & CEO, former CFO of Silver Wheaton
David Awram (B.Sc, Geologist) EVP, former Director of IR at Silver Wheaton

Justin Cochrane (CFA) EVP, former VP at National Bank Financial

Claudia Tornquist EVP, former GM of Bus. Eval. at Rio Tinto

VP, former VP Engineering at DeeThree

Dan Gundersen (P. Eng.)
Exploration
Directors
Vice-Chairman, Cormark Securities
John Budreski
Former President & CEO of Orion Securities
Director of Bear Creek,, Nautilus Minerals,,
D id D
David DeWitt
Witt
Former Director of Arequipa and Peru Copper
Andy Swarthout President & CEO of Bear Creek Mining

Marcel de Groot Chairman of Luna Gold Corp.

TSX.V: SND 3
 COAL STREAM & ROYALTY ACQUISITIONS

SANDSTORM HAS ACQUIRED

Q SIX COAL STREAMS & TWO OIL
STREAMS
1. Three Coal Streams from NovaDX - US$38 Million

2. Three Coal Streams from Royal Coal - US$11 Million

3. A 2.7% Royalty
y y on all assets from Royal
y Coal – US$3
$ Million

4. Two Oil Streams from Terrex Energy - $15 Million

After these acquisitions, Sandstorm still has US$21M for

future acquisitions.

TSX.V: SND 4
 NAV BY COMMODITY

 Sandstorm Metals & Energy will

20% purchase metallurgical coal for
US$75 per ton, thermal coal for
US$55 per ton, and oil for $15/bbl
(plus transport costs &
government royalties).
royalties)
30% 50%
 Current contract prices for Met
coal are in excess of $200/t and for
th
thermall coall are iin excess off
US$70 /t.
Met Coal Thermal Coal Oil

50 % of the Value is from

Metallurgical Coal Streams.

TSX.V: SND 5
 CURRENT STREAMS

Oil Streams in Alberta

Coal Streams in Tennessee, Alabama and

Kentucky

100% OF ASSETS
IN POLITICALLY STABLE
JURISDICTIONS.
JURISDICTIONS

TSX.V: SND 6
 TERREX ENERGY: ENHANCED OIL RECOVERY

Two Creek
• Asset – Existing oil field in Alberta
Alberta, Canada
• Status – EOR / Chemical flood implementation within 30 months
• Production – Peak production of 70k bbl/yr by 2014
• Oil Stream Terms –25%25% for life of wells at $15/bbl (Plus payable royalties)
• Cash Flow Guarantee – Guaranteed payback, plus penalties if EOR is delayed.

TSX.V: SND 7
 MCOAL: HIGH VALUE COAL IN IDEAL LOCATION

Rex No.1 Mine

• Asset –underground
underground Met Coal mine in Tennessee
Tennessee, USA
• Status – Under development, expected to be complete by end of 2011
• Production – 500k tons per annum (2P reserves of 32M tons)
• Coal Stream Terms –25%
25% for several years
years, decreasing to 16%
16%, at $75/t
• Cash Flow Guarantee – Guaranteed payback in 5 years

TSX.V: SND 8
 MCOAL: HIGH VALUE COAL IN IDEAL LOCATION
Rosa Mine
• Asset –Auger Met Coal mine in Alabama, USA
• Status – In production. Wash plant being constructed expected to be complete
by end of 2011
• Production – 150k tons per annum
• Coal Stream Terms –25% for several years, decreasing to 16% at $75/t
• Cash Flow Guarantee – Guaranteed payback in 5 years

Ikerd Properties
• Asset –Low
Low strip
strip, high quality (12,500btu+
(12 500btu+ low sulfur) thermal and industrial
coal mines in Kentucky, USA
• Status – Mix of operating and soon to be operating
• Production – 320k tons per annum
• Coal Stream Terms –25% for several years,
years decreasing to 16% at $55/t
• Cash Flow Guarantee – Guaranteed payback in 5 years

TSX.V: SND 9
ROYAL COAL – CURRENT PRODUCTION

Big Branch & Big Branch Extension

• Asset – High
g qqualityy ((12,500btu+
, low sulfur)) thermal coal mine in Kentuckyy
• Status – In production at Big Branch. Currently developing Big Branch
Extension
• Production – 500k tons per annum increasing to 800k tons per annum
• Coal Stream Terms –18% for several years, decreasing to 12% at $55/t
• Cash Flow Guarantee – Guaranteed payback in 5 years

TSX.V: SND 10
ROYAL COAL – HIGH QUALITY NEAR TERM
PRODUCTION

SID Mine
• Assett – High
A Hi h quality
lit (12
(12,500btu+
500bt lowl sulfur)
lf ) thermal
th l coall mine
i ini Kentucky
K t k
• Status – Beginning development. Completion expected by end of 2011
• Production – 500k tons per annum
• C l Stream
Coal St T
Terms –18%
18% ffor severall years, d
decreasing
i tto 12% att $55/t

TSX.V: SND 11
 COAL STREAMS: SIGNIFICANT CASH FLOW
NovaDX NovaDX Royal Coal
Production for 2014 Terrex Total
Met Coal Thermal Coal Thermal Coal
Total Mine Annual
490 kt 477 kt 1,360 kt 350 k bbl
Production
25% 25% 18% 25% Two Creek
Sandstorm % dropping dropping to dropping to 12% 15% Strathmore
to 16% 16% +2.7% GOR = 20% Avg
Sandstorm Production 122 kt 112 kt 281 kt 65 k bbl

Sandstorm Revenue
(US$185/t Met Coal, US$80 / t US$22.7 M US$9.0 M US$22.5 M US$6.5 M US$60.7 M
Thermal Coal, $100 Oil)

Sandstorm Costs
(US$75/t Met Coal, US$55/t (US$9.2 M) (US$6.2 M) (US$15.5 M) (US$2.6 M) (US$33.5 M)
Thermal Coal, $15 Oil + royalty)

Sandstorm Before Tax

Cash Flow
US$13 5 M
US$13.5 US$2 8 M
US$2.8 US$7 0 M
US$7.0 US$3 9M
US$3.9M US$27 2 M
US$27.2

Before Tax Operating Cash Flow = $27M

TSX.V: SND 12
 ESTIMATED BEFORE TAX OPERATING
CASH FLOW
$50
ax Cash Flow
w

$40
millions)

$30 US$250/t Met Coal, US$120/t Thermal Coal, $120 Oil

Est. Before Ta
(USD m

$20 US$185/t Met Coal, US$80/t Thermal Coal, $100 Oil

$10
US$150/t Met Coal,
Coal US$70/t Thermal Coal,
Coal $80 Oil
E

$0
2011 2012 2013 2014

With an increasing coal price environment,

these Coal Streams can generate significant annual cash flow.

TSX.V: SND 13
 ESTIMATED BEFORE TAX FREE CASH FLOW

Number Exercise Current Treasury Stock Dilution

Price Outstanding
g Calculation
Shares Issued & Outstanding 229M n/a 229M 229M

Options 7M US$0.56 n/a 0M

Warrants (expire December 23, 111M US$0.70 n/a 0M

2012)
Total Pro-Forma 229M 229M

 The US$0.70 warrants trade under the symbol SND.WT

 Exercise of warrants and options would bring in approx. US$78M

TSX.V:
14 SND 14
 CONCLUSIONS

6 Coal Streams and 2 Oil Streams provide the following characteristics:

 Immediate cash flow
 Primary exposure to metallurgical coal
 Significant
g future cash flow g
growth / expansion
p
 Significant asset risk diversification
 Company risk diversification
 $21M for future acquisitions
q

 Contractually guaranteed payback of 5 years, on 20+ year coal assets

The first step in the creation of a large diversified,

world class, cash flowing company.

TSX.V: SND 15