Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (TSX VENTURE: SSL)(NYSE MKT: SAND)(NYSE Amex: SAND) has received official notification that Brigus Gold Corp. ("Brigus") (TSX: BRD)(NYSE MKT: BRD) will exercise its repurchase option under the gold stream agreement between Sandstorm and Brigus, by making a US$24.4 million payment to Sandstorm. Under the original agreement (previously announced on November 9, 2010), Sandstorm is entitled to purchase 12% of the gold produced from the Black Fox Mine, at an ongoing purchase price of US$500 per ounce. With the payment from Brigus, 4% of the gold stream will be repurchased and Sandstorm will be entitled to purchase 8% of the gold produced from the Black Fox Mine.