1. Recommendation: BUY Sandstorm Gold (SNDXF)

2. Industry Overview 2 Gold mining is capital intensive Capital is very expensive for small exploration and production (E&P) miners, known as “junior miners” Debt financing is unavailable due to lack of current cash flow to service the debt and high risk Equity financing dilutes current shareholders Exploration costs are going up Increasingly complex exploration Declining ore grades Energy intensive process

3. Industry Overview 3 Gold prices going up – scarcity and inflation Increasingly difficult to replace current reserves Global government debt load increasing investor demand for inflation hedge CEO Explains business model: http://www.youtube.com/watch?feature=player_embedded&v=VVQjuyOE_a g

4. Industry Overview 4

5. Company Profile The Company is a growth focused company that seeks to acquire gold purchase agreements (“Gold Streams”) from companies that have advanced stage development projects or operating mines. In return for making up front payments to acquire a Gold Stream, Sandstorm receives the right to purchase, at a fixed price per ounce, a percentage of a mine’s gold production for the life of the mine. Sandstorm helps other companies in the resource industry grow their businesses, while acquiring attractive assets in the process. The Company is focused on acquiring Gold Streams from mines with low production costs, significant exploration potential and strong management teams. The Company currently has seven Gold Streams. 5

6. Company Profile 6 Sandstorm investment (lower counterparty risk)

7. Company Profile 7

8. Investment Information 8 Fwd P/E: 14.2x

9. Chart: Steady Bid 9

10. Key Investment Points #1: Experienced Management #2: Large growth opportunity #3: Significantly undervalued 10

11. Management 11 Watson began as CFO at age 26 at Silver Wheaton Raised over $1B in funding for SLW operations Left to form Sandstorm

12. Growth Opportunity 12

13. Growth Opportunity 13

14. Growth Opportunity 14

15. Growth Opportunity 15

16. Growth Opportunity 16

17. Significantly Undervalued 17

18. Significantly Undervalued 18 Ignores upside provided by (1) new agreements, (2) return of cash to shareholders, (3) a rise in gold prices above $1,650 201220132014 Cash Flow (YE run rate) $50 $60 $70 Multiple14.5x Implied Value $725 $870 $1,015 Diluted Shares OS 383 Value Per Share $1.89 $2.27 $2.65 Upside %30%57%83% Current Price: $1.45

19. Significantly Undervalued 19 Why the valuation discount to peers? 1.Illiquid: Should improve as company grows 2.Small: Many institutional buyers have restrictions on market cap / share price 3.Perceived risk of early-stage growth story, customer concentration, focus on smaller mining companies What is NOT causing the valuation discount? 1.Poor management 2.Unproven business model 3.Lack of market opportunity 4.Risky balance sheet / lack of financial liquidity 5.Poor governance practices 6.Low quality financial reporting / audit 7.Inadequate investor relations

20. Significantly Undervalued 20 Upcoming Catalysts: 1.Earnings in February 2.Additional agreement announcements Current financial liquidity = $70M Enough to fund OpCF growth of approx. $20M 3.Potential for QE3, return of inflation in China

21. Other Financial Information 21

22. Other Financial Information 22

23. SWOT Analysis Strengths  Experienced management  Insider ownership ~11%  Free cash flow generation  Financial resources to execute strategy  No double taxation  Proven business model  Production volume / timing guarantees Weaknesses  Exposure to gold prices  Not the only competitor in the market  Illiquid  Focused on smaller projects with shorter mine lives Opportunities  Increased output at current mines  New agreements (significant catalyst)  P/E Multiple expansion  Gold price strength  Potential to expand deal size as company matures Threats  Inability to execute new agreements  Gold price declines  Loss of key management  Equity may be issued to fund growth  Counter party risk 23

24.  BUY 6,900 shares of SNDXF at a limit price of $1.45 (cost: $10,000, 2% of portfolio)  SELL 200 shares of ASPS at a limit price of $53.75 (proceeds: $10,750)  Rationale: With gains of >75% on our cost basis, it is prudent to take profits on half of our position before the February 16 earnings release.  The risk that the company disappoints investors has risen after a 56% rally in less than 4 months. Portfolio Recommendation 24