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SANDSTORM GOLD LTD. ANNUAL INFORMATION FORM FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2019 MARCH 30, 2020 Suite 1400, 400 Burrard Street Vancouver, B.C. V6C 3A6 SANDSTORM GOLD LTD. ANNUAL INFORMATION FORM FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2019 TABLE OF CONTENTS INTRODUCTORY NOTES ............................................................................................................................ 2 CORPORATE STRUCTURE ........................................................................................................................ 4 GENERAL DEVELOPMENT OF THE BUSINESS ...................................................................................... 4 Public Offerings ................................................................................................................................ 4 Credit Facility ................................................................................................................................... 5 Normal Course Issuer Bid ................................................................................................................ 5 Mineral Interests ............................................................................................................................... 6 Corporate Takeovers ..................................................................................................................... 15 Listing on the New York Stock Exchange ...................................................................................... 16 Early Warrant Exercise Incentive Program .................................................................................... 16 DESCRIPTION OF THE BUSINESS .......................................................................................................... 17 Principal Product ............................................................................................................................ 17 Competitive Conditions .................................................................................................................. 25 Operations ...................................................................................................................................... 25 RISK FACTORS ......................................................................................................................................... 29 Risks Relating to the Company ...................................................................................................... 29 Risks Relating to the Mining Operations ........................................................................................ 38 TECHNICAL INFORMATION ..................................................................................................................... 44 CIM Standards Definitions ............................................................................................................. 44 Santa Elena Mine, Mexico ............................................................................................................. 53 Chapada Mine, Brazil ..................................................................................................................... 67 Cerro Moro Project, Argentina ....................................................................................................... 77 Hod Maden Project, Turkey ........................................................................................................... 89 DIVIDENDS ............................................................................................................................................... 103 DESCRIPTION OF CAPITAL STRUCTURE ............................................................................................ 103 TRADING PRICE AND VOLUME ............................................................................................................ 104 Common Shares .......................................................................................................................... 104 Warrants ....................................................................................................................................... 105 DIRECTORS AND OFFICERS ................................................................................................................. 105 INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ................................ 109 TRANSFER AGENT AND REGISTRAR .................................................................................................. 110 MATERIAL CONTRACTS ........................................................................................................................ 110 INTERESTS OF EXPERTS ...................................................................................................................... 110 AUDIT COMMITTEE ................................................................................................................................. 111 ADDITIONAL INFORMATION.................................................................................................................. 113 SCHEDULE “A” ........................................................................................................................................... 1 - 1 - INTRODUCTORY NOTES Cautionary Note Regarding Forward-Looking Information This annual information form (“AIF”) contains “forward-looking statements” or “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information is provided as of the date of this AIF and Sandstorm Gold Ltd. (“Sandstorm Gold” or the “Company”) does not intend, and does not assume any obligation, to update this forward-looking information, except as required by law. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is based on reasonable assumptions that have been made by Sandstorm Gold as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which Sandstorm Gold will purchase gold and other metals or from which it will receive royalty payments and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine construction and operations, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; problems inherent to the marketability of gold and other metals; industry conditions, including fluctuations in the price of the primary commodities mined at such operations, fluctuations in foreign exchange rates and fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects Sandstorm Gold; stock market volatility; competition; as well as those factors discussed in the section entitled “Risk Factors” herein. Forward-looking information in this AIF includes, among other things, disclosure regarding: Sandstorm Gold’s existing Streams (as defined below) and royalties, as well as its future outlook and the mineral reserve and mineral resource estimates for the Santa Elena Mine (as defined below), Chapada Mine (as defined below), the Hod Maden Project (as defined below) and the Cerro Moro Project (as defined below), production and cost estimates and expected plans with regard to certain assets of Mariana Resources (as defined below). Forward-looking information is based on assumptions management believes to be reasonable, including but not limited to the continued operation of the mining operations from which Sandstorm Gold will purchase gold and other commodities or from which it will receive royalty payments, no material adverse change in the market price of commodities, that the mining operations will operate in accordance with their public statements and achieve their stated production outcomes, and such other assumptions and factors as set out therein. Although Sandstorm Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those contained in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as future actions and events and actual results could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Currency Presentation and Exchange Rate Information All dollar amounts referenced, unless otherwise indicated, are expressed in United States dollars (“US Dollars”). - 2 - The high, low,