Issue of Warrants

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

11 March 2014

                            Sula Iron and Gold plc                             

                           ("Sula" or the "Company")                           

                               Issue of Warrants                               

Sula Iron and Gold plc, a multi-commodity exploration company focussed on
Sierra Leone, announces that on 10 March 2014 ("Issue Date") it issued warrants
to subscribe for a total of 6,500,000 ordinary shares of 1p each in the Company
("Ordinary Shares") to key personnel as part of the Group's incentive and
retention strategy ("Warrants").

2,500,000 of the Warrants have been granted to Andrew Dacey, the non-executive
technical director of the Company.

The exercise price of the Warrants is 2.5p per Ordinary Share, being the
closing mid-market price of the Company's shares on the trading day prior to
the Issue Date. In each case, 50 per cent. of the Warrants are exercisable from
the first anniversary of the Issue Date and the remaining 50 per cent. from the
second anniversary of the Issue Date. Vesting and exercise of the Warrants is
further conditional on, inter alia, the individual continuing to be engaged or
employed by the Company at the time of exercise. All of these warrants will
lapse on the fifth anniversary of the Issue Date.

                                   **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 / Avi         Cairn Financial Advisers LLP   [phone]
Robinson                                                                       
                                                                               
Martin Lampshire / David    Daniel Stewart & Company Plc   [phone]
Hart                                                                           
                                                                               
Felicity Edwards /          St Brides Media and Finance    [phone]
Charlotte Heap              Ltd                                                

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. 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. The Company is
focussed on delineating a maiden JORC compliant iron resource on the DSO in
2014, and proving up the gold mineralisation in order to maximise the
Ferensola's value potential.

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.