1. BUY Recommendation: Sandstorm Metals and Energy LTD (STTYF)

2. Key Investment Points Historically successful management Unique business model Highly undervalued Strong technical indicators Timing = OPPORTUNISTIC Competitors  next to none!

3. Industry Overview “ The Mining sector comprises establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. The term mining is used in the broad sense to include quarrying, well operations, beneficiating (e.g., crushing, screening, washing, and flotation), and other preparation customarily performed at the mine site, or as a part of mining activity.” THE DEPARTMENT OF LABOR --Bureau of Statistics--

4. Industry Overview Strong yet volatile outlook for metals/mining industry Current focus  continued growth through expanded production. The demand for metals/energy faces no foreseeable threats. Mining = incredibly capital intensive  difficult MKT entry Only a handful of blue chip companies have the means to reach production.

5. E&P(exploration and production) miners are often weeded out altogether. The potential profits for these “junior miners” are rarely realized. Projects that lack funding are abandoned INCLUDING many with fundamentally sound operational strategies. Against this economic setting, Sandstorm has spotted what it hopes to be a MORE than just “golden” opportunity.

6. Success with Sandstorm Gold 02/02/12  Original purchase at $1.43/ share 05/09/12  5:1 Reverse stock split Adjusted Cost Basis $7.15 57.2% return over 9 months 82.7% annualized return

7. ( exploration and production Unchartered, yet familiar… Business Model Refined Management Streaming Method Corporate Structure Industry Dynamics Gold Streaming ONLY DIVERSIFIED STREAMING  Copper  Palladium  Natural Gas  Coal  Oil

8. Sandstorm provides startup capital for mining projects it deems likely to succeed if given the opportunity to begin production. In return, Sandstorm receives the RIGHT to buy a percentage of the commodity throughout the life of the ENTIRE project at a fixed price. This price remains constant in spite of any cost increases the company may incur. More importantly, It is virtually IMMUNE to any and all economic factors which normally increase price!!!

9. “A Sandstorm investment maximizes investment potential while minimizing downside risks.” (taken from SAND Buy Presentation)

10. YES  right time = right now!!  Steady upward trend  Moving averages in ideal positions respective to one another and to price  Volume rising comfortably with price indicating growing trading/investment activity within Sandstorm Metals & Energy

11. 45º 30º

13.  We are looking for “broken stocks” rather than “broken companies”. In this situation we have the following : Strong Management Proven Business Model Quality Investor Relations Strong Balance Sheet Financial Liquidity an early stage company dabbling in a historically volatile industry!!! PERCEPTION of the avg investor Markers of a fundamentally sound company

14. Prev Close:0.48 52wk Range:.24-.60 Avg Vol (3m):781,652 Market Cap:158.13M Current Eval118.7M EPS (ttm):.01 Div & Yield:N/A Forward P/E: *** Investment Information 2 Year Price Graph

15. SWOT Analysis Strengths  Unique streaming method  Historical success in our portfolio  Experienced exploration and development research teams  Established Infrastructure  ZERO debt  Low overhead Weaknesses  Some projects are bound to be halted  Sandstorm has the aforementioned “immunity” to price fluctuation. However, their project companies do not. Sandstorm profits rely on their success up to the point of production. Opportunities  Donner Metals scheduled for production  Established Infrastructure  Diversification of streams  Potential for new discoveries  Large cash flows Threats  Although Sandstorm has the aforementioned “immunity” to price fluctuation, the companies it finances do not.  Failure of selected projects = no stream to speak of  Government regulations and policies on commodities are susceptible to change

16.  Sector : Industrials & Materials  Industry Group: Investment Company  Current Holdings: GE, XYL, SAND, UPS  Target Sector Allocation: 8.23%  Current Sector Allocation: 11.89%, $19,431.16  BUY 20,000 shares of STTYF at a limit price of $.50 ($10,000, approx. 2% of portfolio)  Holding Period/Exit Strategy: 2-3 years; consider selling if stock splits and reaches estimated peak, if price falls below $.30, or if fundamentals change dramatically Portfolio Placement / Recommendation