Sandstorm Gold has agreed to purchase an amount equal to 1.5% of the gold and 35% of the platinum produced from Serra Pelada (the "Precious Metals Purchase Agreement"). Pursuant to this agreement, Sandstorm Gold will pay an upfront cash deposit to Colossus of US$60 million and ongoing per ounce payments equal to the lesser of US$400 per ounce of gold and the prevailing market price of gold, and the lesser of US$200 per ounce of platinum and the prevailing market price of platinum.

"Serra Pelada is a fantastic project run by a first-class management team," said Sandstorm Gold President & CEO Nolan Watson. "We are confident that the high-grade nature of the Serra Pelada deposit will contribute to it being a low cost producer for years to come."

As part of the transaction, Sandstorm Gold has also agreed to purchase 35% of the palladium produced from Serra Pelada (the "Palladium Purchase Agreement") in exchange for paying a US$15 million deposit (bringing the total deposit payment made by Sandstorm Gold to US$75 million) plus ongoing payments of US$100 per ounce of palladium. In addition, Sandstorm Gold has entered into a back-to-back agreement with Sandstorm Metals & Energy Ltd. ("Sandstorm Metals") whereby Sandstorm Metals has purchased the Palladium Purchase Agreement from Sandstorm Gold in exchange for issuing a promissory note. The promissory note states that the US$15 million will be repaid to Sandstorm Gold in cash or shares, within one year's time. For more information, see the Sandstorm Metals press release at http://www.sandstormmetalsandenergy.com.

Colossus will have the option, until April 1, 2015, to purchase in whole or in part, up to 50% of the obligation to purchase metals under the Precious Metals Purchase Agreement and the Palladium Purchase Agreement by making a US$48.75 million payment, whereupon the percentage of gold and platinum to be purchased by Sandstorm Gold shall be decreased to 0.75% and 17.5% respectively and the percentage of palladium to be purchased by Sandstorm Metals shall decrease to 17.5%.