Aurizona Construction Activities To Expand Mill Underway

VANCOUVER - Sandstorm Gold Ltd. reported the final key permit for restarting construction and mining at Aurizona in Brazil was received, allowing Equinox to complete construction activities and expand the mill throughput to 8,000 tonnes per day. Early works construction is underway and Equinox is on track to pour gold at Aurizona in late 2018. The operation is expected to produce an average of 136,000 ounces of gold per year.

The company has a 3% - 5% sliding scale net smelter returns (NSR) royalty on the Aurizona project. At gold prices less than or equal to US$1,500 per ounce, the royalty is a 3% NSR. In addition, Sandstorm holds a 2% NSR royalty on the Aurizona Greenfields property, a 190,073 hectare package of exploration ground adjacent to the Aurizona project. An exploration agreement with AngloGold Ashanti Limited whereby AngloGold may invest US$14 million in exploration to earn a 70% interest in Aurizona Greenfields record gold equivalent production in 2017 and sells record number of gold equivalent ounces in 2017. During the 2017 year, Sandstorm sold approximately 54,600 attributable gold equivalent ounces1 (FY 2016 – 49,731 ounces), the highest yearly total in Company history.