INVESTING IN MINING

CAN BE HAZARDOUSTO YOUR HEALTH

“Quick, what's the world's worstinvestment sector?”

“Airlines? Autos? Biotech? Give up? Junior mining is way worse. Airlines limp on for years in quasi-bankruptcy—so do autos. A few companies like Toyota even do well. Biotech companies sometimes find something interesting. Even if your junior mining company finds something, you still will probably lose money.”

—Adventures in Capitalism, 2010

Cyclicality of theMining Industry

WE AREHERE

Case StudyMarket Cap $ 80,000,000

Value of Equity $ 8,000,000

NAV $ 100,000,000

Shares: 80 Million Investor Ownership: 10%

$8.0 M $3.0 M $2.5 M $1.9 M

YEAR 1 YEAR 2 YEAR 3 YEAR 4

80 MSHARES

88 MSHARES

109 MSHARES

$0.38$0.38 $0.31$0.31 $0.25$0.25

VALUE OF EQUITY

$8.0 M $3.0 M $2.5 M $1.9 M

YEAR 1 YEAR 3 YEAR 4

80 MSHARES

88 MSHARES

109 MSHARES

$0.38$0.38 $0.31$0.31 $0.25$0.25

VALUE OF EQUITY

62%

YEAR 2

$8.0 M $3.0 M $2.5 M $1.9 M

$2.5 M $1.9 M

VALUE OF EQUITY

YEAR 1 YEAR 2 YEAR 3 YEAR 4

101 MSHARES

109 MSHARES

$0.31$0.31 $0.25$0.25

80 MSHARES

$8.0 M $3.0 M $2.4 M $1.9 M

VALUE OF EQUITY

YEAR 1 YEAR 2 YEAR 3 YEAR 4

128 MSHARES

$0.25$0.25

80 MSHARES

101 MSHARES

$8.0 M $3.0 M $2.4 M $1.9 M

VALUE OF EQUITY

YEAR 1 YEAR 2 YEAR 3 YEAR 4

101 MSHARES

80 MSHARES

128 MSHARES

161 MSHARES

Company AStock Chart

RECAP

Company BStock Chart

RECAP

YEAR 1 YEAR 2 YEAR 3 YEAR 4

$8.0 M $3.0 M $2.4 M $1.9 M

VALUE OF EQUITY

101 MSHARES

80 MSHARES

128 MSHARES

161 MSHARES

YEAR 1 YEAR 2 YEAR 3 YEAR 4

$8.0 M $3.0 M $0 $0

65% of studied companies in the junior mining sector, have no cashflow and more debt than cash.

Cyclicality of theMining Industry

WE AREHERE

Cyclicality of theMining Industry

WE AREHERE

The mining industry will have record equity issuances in underline number of shares in 2014.

Prediction:

Avoidsequity dilution

More accretiveto NAV per share

Benefits of Royalties& Streaming

Can be completedquickly

Avoids dilutingsecondary projects

100%

Potential for low costoperations

Exploration Upside

Political stability

What Sandstorm isLooking for

APPEAL

TO INVESTORS