Issue of Equity

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

12 February 2014

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

                                Issue of Equity                                

Sula Iron & Gold plc, a multi-commodity exploration company focussed on Sierra
Leone, announces that it has issued 250,000 new ordinary shares (`New Shares')
of 1 pence each in the capital of the Company (`Ordinary Shares') pursuant to
the exercise of 250,000 warrants granted in October 2013. The Company has
received a valid notice of exercise in respect of the warrants and has received
funds of £7,500 representing the exercise price of 3 pence per share.
 Following these most recent exercises, a total of 20,840,000 of the 40,000,000
warrants granted in October 2013 remain unexercised.

The New Shares rank pari passu in all respects with the existing Ordinary
Shares. Application has been made to the London Stock Exchange for the New
Shares to be admitted to trading on AIM and it is expected that admission of
the New Shares will become effective and that dealings in the New Shares will
commence at 8.00am on 17 February 2014 (`Admission').

Total Voting Rights

Following Admission, the Company's enlarged issued share capital will comprise
188,151,686 Ordinary Shares with voting rights. The Company does not hold any
shares in treasury. This figure of 188,151,686 Ordinary Shares may be used by
shareholders in the Company as the denominator for the calculations by which
they will determine if they are required to notify their interest in, or a
change in their interest in, the share capital of the Company under the FCA's
Disclosure and Transparency Rules.

                                   **ENDS**                                    

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

Nick Warrell             Sula Iron & Gold plc              [phone] 
                                                                               
Matt Wood                Sula Iron & Gold plc              [phone]
                                                                               
James Caithie /          Cairn Financial Advisers LLP      [phone]
Avi Robinson                                                                       
                                                                               
Martin Lampshire /       Daniel Stewart & Company Plc      [phone]
David Hart                                                                           
                                                                               
Felicity Edwards /       St Brides Media and Finance Ltd   [phone]
Charlotte Heap                                           
                

Notes

Sula Iron & Gold plc is a multi commodity exploration company focussed on West
Africa. The Company's main objective is to explore and advance its 153 sq km
Ferensola Project, in Northern Sierra Leone, which is highly prospective for
iron and gold. The Company is focussed on delineating a maiden JORC compliant
iron resource both on the DSO and magnetite in 2014, and proving up the gold
mineralisation in order to maximise the Ferensola's value potential. An
exploration target of 500 million tonnes at 30.4% iron for magnetite has been
given by exploration consultants SRK Exploration Services Ltd.

Exploration work at Ferensola has confirmed the presence of Banded Iron
Formation (`BIF') at surface, which has a known strike length of 3.1km.
Significantly, the BIF is proven to extend NE from African Mineral's 12.8
billion tonne operational Tonkolili iron mine, into Sula's licence area, which
is located contiguously to Tonkolili. Furthermore, a 2,000m scout drilling
programme conducted over a 2.2km section of BIF in July 2013, confirmed
consistently high grade iron mineralisation at Ferensola.

Significant Greenstone Belt-style gold mineralisation has also been identified
at various prospects within the licence area. Five target areas for hard rock
gold mineralisation have been identified based on the location of historic
drill intercepts, the source areas for alluvial gold deposits, and the position
of major structures as defined by airborne magnetic data and drainage
orientation. Field work has been carried out recently and, following the
processing and interpretation of all geophysical and assay results, Sula will
be able to define robust drill targets at two principal target areas - the
Lagunda and Yanfarina prospects. Further targets are yet to be explored.