Green

1
Green Gold Fund

• 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
Industry Overview

• EP(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 ? 51 Reverse stock split
• Adjusted Cost Basis 7.15
• 57.2 return over 9 months
• 82.7 annualized return

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Unchartered, yet familiar
( exploration and production
Business Model Refined Management Streaming
Method Corporate Structure Industry Dynamics

• DIVERSIFIED STREAMING
• Copper
• Palladium
• Natural Gas
• Coal
• Oil

Gold Streaming ONLY
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Commodity Streaming
9
Commodity Streaming

• A Sandstorm investment maximizes investment
  potential while minimizing downside risks.

(taken from SAND Buy Presentation)
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Is this the right time?

• 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

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Steady Uptrend (30-45 degrees)
45º
30º
12
Moving Averages
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Undervalued, but why?

• 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

But
Markers of a fundamentally sound company
PERCEPTION of the avg investor
an early stage company dabbling in a historically
volatile industry!!!
14
Investment Information
Prev Close 0.48
52wk Range .24-.60
Avg Vol (3m) 781,652
Market Cap 158.13M
Current Eval 118.7M
EPS (ttm) .01
Div Yield N/A
Forward P/E
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
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Portfolio Placement / Recommendation

• 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