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Hostile Takeover

09/01/11 1:06 AM

#3 RE: Hostile Takeover #2

Sandstorm Metals & Energy Ltd. has completed a US$15 million payment to Thunderbird Energy Corp. in accordance with the natural gas purchase agreement announced on July 13, 2011. Under the terms of the agreement, Sandstorm Energy is entitled to purchase 35% of all natural gas produced from the Gordon Creek project located in Utah, USA. Sandstorm Energy will purchase the natural gas at a price equal to the lesser of the prevailing market price and US$1.00 per Mcf of gas delivered plus 20% of the market price received above US$4.00 per Mcf.