Positive results from iron drilling in Sierra L...

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

22 July 2013

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

 Positive results from iron reconnaissance drilling programme in Sierra Leone  

Sula Iron & Gold plc, an iron ore and gold exploration company focussed on
Sierra Leone, is pleased to announce that it has received positive assay
results from the first two drill holes of its 2,000m drilling programme
targeting iron mineralisation at its wholly owned 153 sq km 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 (`Licence').

Overview

  * Initial results confirm presence of iron mineralisation with comparable
    grades to African Minerals Tonkolili Project, with best intersections of
    30.96m at 37.37% iron (`Fe') and 6.14m at 55.67% Fe
   
  * Drilling focussed on `Area 1' to test the strike continuity, thickness and
    iron grade of a 3.1km banded iron formation (`BIF')
   
  * Area 1 is coincident with a strong linear magnetic anomaly extending from
    African Minerals 12.8Bt iron Tonkolili licence area
   
  * Eight holes out of the planned nine have been drilled to date - two results
    announced to day, remaining holes will be announced in due course
   
  * Depending on final drill results a second phase programme will be
    implemented to test direct shipping ore (`DSO') potential
   
  * Aim to delineate a maiden JORC compliant resource in 2013
   
Sula's Non-Executive Technical Director Gareth O'Donovan said, "I am delighted
to announce this first set of positive drill results from our 100% owned
Licence that is contiguous to the world-class Tonkolili Mine in Sierra Leone.
Results include intersections of 30.96m at 37.37% Fe and 6.14m at 55.67% Fe
taken from our primary target Area 1, highlighting the prospectivity of the
Licence. We look forward to updating the market shortly on the remaining assay
results which we hope will further enhance our understanding of the iron
mineralisation, as we look to define the Licence's DSO potential and the
estimation of a maiden JORC compliant resource later in 2013. In addition, we
continue to operate a dual commodity exploration programme, and remain focussed
on also proving the gold potential of our highly prospective Licence."

To view a full version of the announcement, including figures and maps, please
visit the Company's website at: www.sulairongold.com

Further Information

As part of the Company's on-going exploration and development programme to
advance the licence towards a maiden iron resource, Sula is conducting diamond
drilling over a 3.1km section of the Banded Iron Formation (BIF) located in
`Area 1'. Area 1 is 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 at the
Dalakuru Prospect, which has been identified as a high priority target.

The diamond drilling programme will comprise a total of nine drill holes, for
2,000 metres of drilling over a strike length of 2.2km. To date eight holes
have been drilled at an azimuth of 140Ëš and a dip of 50Ëš, to a downhole depth
of 250 metres. Results have been received from two of the holes, two more have
been summited to the laboratory and are awaiting results, and the remaining
four are currently being logged and sampled.

Results received to date from the drilling programme confirm the presence of
high grade iron mineralisation, with best intersections of 30.96m at 37.37% Fe
and 6.14m at 55.67% Fe.

Table 1: Drilling Results:

HOLE_ID FROM    TO   INTERVAL   TRUE     Fe    P    SiO2   Al2O3     Comment   
                               WIDTH *   (%)        (%)     (%)                
                                              (%)                              
                                                                               
BHDD003 22.65  40.65    18.00     12.28 39.23 0.07   2.34    5.07 Oxidised BIF 
                                                                  zone         
                                                                               
BHDD003 48.15  57.15     9.00      6.14 55.67 0.17   9.39    2.21 Oxidised BIF 
                                                                  zone         
                                                                               
BHDD003 57.15 102.55    45.40     30.96 37.37 0.04  32.40    2.83 BIF          
                                                                               
BHDD004 88.65 120.17    31.52     27.30 35.97 0.05  40.95    2.81 BIF          
                                                                               
BHDD004 150.1  168.5    18.40     15.93 37.43 0.04  40.39    1.22 BIF          
                                                                               
BHDD004 176.8 199.75    22.95     19.88 34.82 0.04  39.28    2.51 BIF          

* 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 collected and 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.

Quality Assurance / Quality Control (QA/QC)

Sample intervals are reported as both metres (m) 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:

Gavin Burnell               Sula Iron & Gold plc           [phone]
                                                                               
James Caithie / Avi         Cairn Financial Advisers LLP   [phone]
Robinson                                                                       
                                                                               
John Howes / Alice Lane     Northland Capital Partners     [phone]
                            Limited                                            
                                                                               
Chris Rourke / Guy Wheatley Beaufort Securities Limited    [phone]
                                                                               
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, 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.

Significant Greenstone Belt-style gold mineralisation has also been identified
at various prospects within the licence area. Greenstone deposits are typically
located on or proximal to regional scale, deep seated faults and lineaments.
Artisanal miners have exploited placer gold within the project area for more
than 60 years, and active workings are observed in at least five separate
areas.