Sandstorm Gold Ltd. (“Sandstorm” or the “Company”) (NYSE MKT: SAND, TSX: SSL) has entered into an agreement with a syndicate of underwriters co-led by National Bank Financial Inc. and BMO Capital Markets (the “Underwriters”) pursuant to which they have agreed to purchase, on a bought deal basis, 11,236,000 common shares of Sandstorm (the “Common Shares”) at a price of US$4.45 per Common Share, for aggregate gross proceeds to Sandstorm of US$50 million (the “Offering”). In addition, Sandstorm has agreed to grant to the Underwriters an option to purchase up to an additional 1,685,400 Common Shares on the same terms and conditions as the Offering, exercisable at any time, in whole or in part, until the date that is 30 days following the closing of the Offering. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Offering to Sandstorm will be US$57.50 million.

The Company plans to use the net proceeds from the Offering to reduce the balance of its revolving credit facility, for the acquisition of streams and royalties and for general working capital purposes.

The Common Shares to be issued under the Offering will be offered by way of a prospectus supplement (the “Supplement”) and an accompanying short form base shelf prospectus of the Company, in all of the provinces of Canada, other than Quebec, and will be offered in the United States pursuant to the Supplement and an accompanying base shelf prospectus filed as part of an effective shelf registration statement on Form F-10 filed with the Securities and Exchange Commission under the multi-jurisdictional disclosure system adopted by the securities regulatory authorities in Canada and the United States. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

The Offering is scheduled to close on or about July 6, 2016, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the NYSE MKT. A copy of the Supplement relating to the Offering in the United States will be available on EDGAR at www.sec.gov and a copy of the Supplement for the Offering in Canada will be available on SEDAR at www.sedar.com