Placing to raise £585,000 and Operational Update

14 November 2014

                            Sula Iron and Gold plc                             

                           ("Sula" or the "Company")                           

                          Placing to raise £585,000 and                          
                              Operational Update                               

Sula Iron and Gold plc, a multi-commodity exploration company focused on Sierra
Leone, announces that it has conditionally raised £585,000, through a placing
of 39,000,000 new ordinary shares of 1p each in the Company (the "Placing
Shares") at a price of 1.5p per Placing Share with institutional investors (the
"Placing").  

The net proceeds of the Placing will be used to progress Sula's gold and coltan
exploration activities to pre-drilling stage over the next six months, as
further described below.

Gold

Follow-on exploration to further define drill targets within the Ferensola
Licence is planned. A ground magnetic survey is expected to be completed by
late 2014 with this survey covering both the potential BIF-2 iron
mineralisation extension as well as areas thought to be prospective for gold
mineralisation. Additional exploration activities may include:

  * Ground magnetic data analysis and interpretation;
   
  * Trenching and geological mapping over the previously identified Dalakuru
    and Lagunda gold targets;
   
  * IP over historic mineralisation at Dalakuru and newly identified anomalies;
    and
   
  * Re-logging Mano River Resources Inc. drill cores and potentially
    re-assaying best intersections.
   
Coltan

Since the realisation of the potential for tantalum and niobium mineralisation
within the Ferensola Licence and the subsequent successful identification of
coltan mineralised alluvial material, the Company has quickly moved to advance
the understanding and value potential of this third commodity. Coltan, which is
a generic term used for describing a particular mineral with a variable
niobium-tantalum composition, has a number of high-tech uses and its supply is
becoming increasingly important to the electronic industry in particular. While
tantalum is not traded on any recognised metal exchange, the pricing has ranged
from US$160 - US$205/kg of contained Ta2O5 during the last 12 months.

SRK ES confirmed that pegmatites of interest are located within the Ferensola
Licence; these are thought to be the primary source of the alluvial coltan that
has been identified throughout the Licence. Sula has an initial exploration
programme currently under way which will now increase to include the following:

  * Geological mapping and sampling of the pegmatites to identify the primary
    source of coltan mineralisation;
   
  * Trenching and pitting over areas of identified coltan alluvial bearing
    material; and
   
  * Bulk samples (+200kg) of alluvial material and subsequent analyses enabling
    a better understanding of the distribution of coltan within the alluvial
    systems.
   
The exploration for tantalum and niobium, or coltan, falls within the existing
Licence parameters. Further, any coltan, if produced in the future, would be
fully compliant with the Dodd-Frank Act.

In parallel with the above exploration activities, a leading tantalum off-taker
has been identified and preliminary discussions have commenced.

Sula CEO Nick Warrell said:

"I am pleased to announce that we have raised these funds. Having successfully
drilled the main BIF unit within our Licence earlier in the year ahead of
schedule and under budget, these funds will enable us to take our gold and
coltan exploration targets up to pre-drilling stage. We have proven our ability
to carry out extensive drilling campaigns with the work on the main BIF unit
and we look forward to receiving the JORC compliant MRE as planned before the
end of 2014."

The Placing Shares will, when issued, rank pari passu in all respects with the
existing ordinary shares of 1p each in the Company ("Ordinary Shares
"). Application will be made to the London Stock Exchange for admission to
trading on AIM of the Placing Shares ("Admission"). Completion of the Placing
is conditional on, inter alia, Admission.

It is expected that Admission will become effective and that dealings in the
Placing Shares will commence at 8.00 a.m. on or around 27 November 2014.

Following the issue and allotment of the Placing Shares, the Company's enlarged
issued ordinary share capital will comprise 320,484,958 Ordinary Shares ("
Enlarged Share Capital").  The Company does not hold any Ordinary Shares in
treasury.  This figure of 320,484,958 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
Financial Conduct Authority's Disclosure and Transparency Rules.

 

                                   **ENDS**                                    

 

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

Sula Iron & Gold plc                                       [phone]
Nick Warrell / Matt Wood                                                       
                                                                               
Cairn Financial Advisers LLP (Nominated Adviser)           [phone]
James Caithie / Avi Robinson                                                   
                                                                               
VSA Capital Limited (Broker)                               [phone]
Bhavesh Patel / Richard Buckle                                                 
                                                                               
Strand Hanson (Financial Adviser)                          [phone]
Simon Raggett / James Harris                                                   
                                                                               
Yellow Jersey PR (Financial PR)                            [phone]
Dominic Barretto / Kelsey Traynor                                              


Notes

Sula Iron & Gold plc is a multi-commodity exploration company focused in 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, gold and coltan.