Gordon Creek Energy Inc TBDYF

latest QR from Sandstorm

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Impairment of Thunderbird Energy Stream

Given Thunderbird’s negative working capital, Sandstorm has been in discussion with the
company to modify the terms of the Energy Stream to better allow Thunderbird to raise additional
third party capital. These factors and the lack of progress with respect to Thunderbird’s drilling
commitments prompted the Company to evaluate its investment in Thunderbird. As a result of
its review and circumstances specific to certain assets, the Company recorded an impairment
charge to the Thunderbird Energy Stream in the amount of $12.1 million during the three months
ended June 30, 2013. Sandstorm believes any future restructuring associated with Thunderbird
will provide Sandstorm the opportunity to extract value from its initial investment.