Further Iron Drill Results - Sierre Leone

Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources   

9 September 2013

                Sula Iron & Gold plc (`Sula' or `the Company')                 

Further Drilling Results Confirm Significant Iron Prospectivity in Sierra Leone

Sula Iron & Gold plc, an iron ore and gold exploration company focussed on
Sierra Leone, is pleased to announce a further two positive assay results from
its recently completed 2,000m nine hole iron ore drilling programme at its
wholly owned 153 sq km Ferensola Project* (`Ferensola' or `the Licence'),
previously called the Blue Horizon licence area, located in the northern part
of the Sula-Kangari Greenstone Belt in Sierra Leone, which is prospective for
iron and gold. The results to date continue to confirm the Licence's
prospectivity for iron in line with strategy to delineate a maiden JORC
compliant iron resource in 2014.

Overview

  * Best intersections include 29.70m at 52.25% iron (`Fe') and 40.01m at
    29.98% Fe, continuing to demonstrate the mineralisation's high iron grade
   
  * Previous drill holes returned highs of 30.96m at 37.37% Fe, 6.14m at 55.67%
    Fe, 11.10m at 54.41% Fe and 69.70m at 37.28% Fe
   
  * Drill programme tested the strike continuity, thickness, and iron grade of
    a 2.2km section of a 3.1km banded iron formation (`BIF') which is
    coincident with a strong linear magnetic anomaly, proven to extend from
    African Minerals 12.8Bt iron Tonkolili licence area
   
  * Depending on final drill results (three further assay results due) and
    funding requirements, infill drilling will be conducted in order to
    delineate a JORC compliant iron ore resource in 2014, and a second phase
    programme will be implemented to test direct shipping ore (`DSO') potential
   
  * An exploration target of 500 million tonnes at 30.4% iron for magnetite and
    55% iron for hematite has been suggested by independent exploration
    consultants SRK Exploration Services Ltd
   
  * Maintaining dual-commodity exploration programme to target the Licence's
    iron and gold prospectivity in order to maximise the Licence area's value
    potential
   
To view a full version of the announcement, including figures and maps, please
visit the Company's website at: www.sulairongold.com

Sula's Non-Executive Technical Director Gareth O'Donovan said, "These latest
drill results continue to demonstrate consistent high-grade iron intercepts and
further confirm that our flagship Ferensola Iron Project in Sierre Leone is
highly prospective for iron. This is especially significant given that our
licence area runs contiguous, and is on strike with African Minerals'
world-class 12.8 Bt Tonkolili Mine. A further three assay results are due from
our recently completed 2,000m drilling programme, and I look forward to
reporting on these as we continue to fast-track Ferensola towards delineating a
maiden JORC compliant resource early 2014 and testing the DSO potential, both
of which will further prove the economic attractiveness of our project.

"Additionally, as previously stated, we are a dual-commodity focussed company
and in this respect we remain committed to further proving the exciting gold
potential of Ferensola where multiple gold targets have already been
identified. With further sampling, mapping and reconnaissance work planned, I
also look forward to updating on these developments as we continue to unlock
the intrinsic value of our flagship project and enhance shareholder value."

Further Information

In line with the Company's on-going exploration and development programme to
advance the Licence towards a maiden JORC compliant iron resource, Sula
completed a scout drilling programme over a 2.2km section of the Banded Iron
Formation (`BIF'), which has a known strike length of 3.1km. Six assay results
of nine have now been received and once all assay results have been analysed,
Sula will look to test the entire strike length in further drilling programmes,
with the ultimate aim of delineating a JORC compliant iron ore resource in 2014
and testing the DSO potential.

The BIF is located in Area 1, in the southwest part of the Licence, and is
located directly along strike from an undrilled magnetic high within African
Minerals Limited's 12.8 billion tonne Tonkolili Licence. The drilling aims to
test the strike continuity, thickness and iron grade of the main BIF target,
which has been identified as a high priority target.

Results received to date confirm the presence of high grade iron
mineralisation. Drill results received from drill holes BHDD007 and BHDD008,
returned best intersections of 29.70m at 52.25% iron (`Fe') and 40.01m at
29.98% Fe. These results further support the previous drill results received
from BHDD003, BHDD004, BHDD005, and BHDD006 (see announcement dated 22 July
2013, and 2 September 2013) and confirm the high grade consistency of the iron
mineralisation within the Licence.

Table 1: Drilling Results:

HOLE_ID  FROM    TO   INTERVAL   TRUE     Fe    P   SiO2  Al2O3     Comment    
                                WIDTH**                                        
         (m)    (m)     (m)               (%)  (%)   (%)   (%)                 
                                  (m)                                          
                                                                               
BHDD007  11.00  45.30    34.30     29.70 52.25 0.07  4.75 10.72       BIF      
                                                                               
BHDD007  48.95  65.80    16.85     14.59 55.54 0.07  8.13  4.18       BIF      
                                                                               
BHDD008   1.28  11.90    10.62      9.19 36.52 0.14  6.91 24.14     Surface    
                                                                   Material    
                                                                               
BHDD008  25.30  39.00    13.70      1.86 42.08 0.15 15.48 13.48       BIF      
                                                                               
BHDD008  42.80  47.10     4.30      3.72 41.59 0.06 26.27  6.69       BIF      
                                                                               
BHDD008 139.80 186.00    46.20     40.01 29.98 0.04 44.32  3.36    BIF with    
                                                                  Amphibolite  
                                                                               
BHDD008 210.40 237.30    26.90     23.29 35.64 0.04 39.88  2.03    BIF with    
                                                                  Amphibolite  

** calculated by SRK ES using cross-sectional interpretation of the mineralised
intercepts in three dimensions; used alpha angle intersection trigonometry,
which has assumed the geologies constantly dipping at 70° NW and no hole
deviation.

Once all of the drill results have been analysed a second phase programme of
shallow vertical holes may be required to test Area 1's potential for direct
shipping ore (`DSO') iron. Initial field mapping completed in December 2012
indicated that the BIF outcrops are variably oxidised to higher grade haematite
mineralisation; such supergene processes are responsible for the formation of
the higher grade DSO ores.

General Ferensola Information

The Ferensola Project is a renewable four year 153 sq km Exploration Licence,
highly prospective for both iron ore and gold. The Licence is located in the
Sula-Kangari Greenstone Belt in the Northern Province of Sierra Leone, 55km
south of the nearest town, Kabala, and 290km north east of the capital Freetown
and has good infrastructure with access from Freetown via a tarred road
followed by 80km on bush roads.

There is an exploration camp located centrally at Ferensola, comprising of core
logging shed, accommodation buildings, an office block, mechanical engineering
workshops, stores, kitchen and dining facilities, and ablution blocks.

* The Company's formerly named Blue Horizon Licence area has been renamed the
Ferensola Project which direct translation from Kuranko (the indigenous tribal
language) meaning togetherness. The Company's 100% owned licence is part of
three Kuranko Chiefdoms, Diang, Samia Bendugu and Nieni, all of which the
Company has very strong community relationships with.

Quality Assurance / Quality Control (QA/QC)

Sample intervals are reported as both metres downhole and as true thickness,
which have been calculated by SRK Exploration Services using cross-sectional
interpretation of the mineralised intercepts in three dimensions, and oriented
core. The actual dip of the BIF varies but is generally fairly steep.

All drill core is transported by Company personnel from the drill site to a
nearby secure storage facility for logging and sampling. Sampling intervals are
defined after core logging and estimation of iron content. The core is split
and half of the core is sent for assay, while the other half is retained in the
core boxes.

Samples are sent by courier to ALS Preparation Laboratory in Monrovia, Liberia
then sent to The ALS Group Laboratory in Johannesburg, South Africa, a SANAS
accredited laboratory for analyses by XRF.

A set of standards, duplicates and blanks is inserted by SRK ES into the sample
stream on a regular basis in addition to the laboratory's own internal QA/QC
standards and duplicates. QA/QC results to date are well within the accepted
norm.

                                   **ENDS**                                    

For further information please visit www.sulairongold.com or contact the
following:

Nick Warrell                Sula Iron & Gold plc           [phone] 
                                                                               
James Caithie / Avi         Cairn Financial Advisers LLP   [phone]
Robinson                                                                       
                                                                               
John Howes / Alice Lane     Northland Capital Partners     [phone]
                            Limited                                            
                                                                               
Felicity Edwards /          St Brides Media and Finance    [phone]
Charlotte Heap              Ltd                                                

Notes

Sula Iron & Gold plc is an iron ore and gold exploration company focussed on
West Africa. The Company's main objective is to explore and advance its key
Exploration Licence EL54/2011, the Ferensola Project, in Northern Sierra Leone,
which boasts a dual commodity focus and is highly prospective for iron and
gold. The 153 sq km licence area is contiguous to African Minerals' operational
Tonkolili Iron Mine that has a JORC compliant resource of 12.8 billion tonnes.

Exploration work at the project has confirmed the presence of Banded Iron
Formation (`BIF') at surface over a strike length of 3.1km and drill-ready. The
BIF appears to extend NE from the Tonkolili Mine into Sula's licence area. An
exploration target of 500 million tonnes at 30.4% iron for magnetite and 55%
iron for hematite has been given by independent exploration consultants SRK
Exploration Services Ltd.