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July 5, 2011) - Sandstorm Gold Ltd. ("Sandstorm") (TSX VENTURE:SSL) announces an operational update at the Aurizona Mine ("Aurizona"), owned and operated by Luna Gold Corp. ("Luna") (TSX VENTURE:LGC).

During the second quarter, Luna's performance had mixed results with lower than forecast production being offset by success in rebuilding the operational team and excellent results in exploration. Luna's management team has developed plans to deliver feasibility levels of gold production and is currently executing this plan. The new management team includes a Vice

President Operations, a General Manager and a Mining Manager.

Luna management and consulting engineers have identified major and minor modifications required to achieve reliable and consistent feasibility design performance. Plant improvements and upgrades will proceed progressively while production continues. In April, Aurizona underwent a planned shutdown to complete an upgrade to the SAG mill and other plant modifications necessary to ramp up production to feasibility levels. The upgrade was completed in 19 days and during May and June operational staff progressively increased throughput and recoveries to deliver consistent and reliable production for the future of the operation.

The production results for Q2 demonstrate a positive upward trend in all key indicators, particularly tonnes throughput, grade and gold produced. Ramping up to feasibility target production of 4,500 to 5,000 ounces of gold per month by Q3 and Q4 will require an 18% increase in mill throughput and a 24% increase in recoveries. Luna management plans for feasibility targets to be achieved in Q3 and produced consistently in Q4.

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