Commence 2,000m Drilling to Target Iron Mineral...

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

22 April 2013

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

 Commence 2,000m Drilling Programme to Target Iron Mineralisation at Iron and  
                         Gold Project in Sierra Leone                          

Sula Iron & Gold plc, an iron ore and gold exploration company focussed on
Sierra Leone, is pleased to announce that iron resource drilling has commenced
at its wholly owned 153 sq km iron and gold exploration area located in the
northern part of the Sula-Kangari Greenstone Belt in Sierra Leone (`Licence').

Overview

  * 2,000m drilling programme underway 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
   
  * Aim to delineate a maiden JORC compliant resource in 2013
   
Sula's Non-Executive Technical Director Gareth O'Donovan said, "The
commencement of drilling marks a significant development in our exploration
efforts. By testing the strike continuity, thickness and iron grade of the BIF,
I am confident that this drilling programme will greatly enhance our
understanding of the exciting high grade iron mineralisation as we look to
define the projects iron's direct shipping ore potential and the estimation of
a maiden JORC compliant resource later in 2013. I look forward to updating
shareholders on the drilling programme in due course and also look forward to
updating the market on our gold activity; we continue to operate a dual
commodity exploration focus in order to prove up both the iron and gold
potential of our highly prospective Licence."

Exploration Update

The prospectivity for iron mineralisation in the form of BIF supergene enriched
oxidised zones is believed to be very good within the Licence area. Previously
Exploration consultants SRK Exploration Services Ltd issued an exploration
target for the Licence of 500Mt at 30.4% iron for magnetite and 55% iron for
haematite.

Following positive channel sampling results (see press release 25 February
2013) which confirmed the presence of high grade iron mineralisation, with best
intersections of 18m at 51.83% Fe and 22m at 56.22% Fe, at the Licence, Sula
has implemented a 2,000m drilling programme.

The diamond drilling programme will comprise eight drill collars over a strike
length of 2.2km. Each hole will be drilled at an azimuth of 140Ëš and a dip of
50Ëš, to a downhole depth of 250 metres. In order to prove up the iron resource
potential of the Licence, the drilling programme will test the strike
continuity, thickness and iron grade of a 3.1km Banded Iron Formation (`BIF')
located in target Area 1 (south-western part of the Licence), which is directly
along strike from an undrilled magnetic high within African Minerals Limited's
12.8 billion tonne Tonkolili iron mine.

Depending on the results of the diamond drilling, a second phase programme of
shallow vertical holes may be required to test Area 1's potential for direct
shipping ore (`DSO'). 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.

                                   **ENDS**                                    

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

Brian Moritz                Sula Iron & Gold plc           [phone]
                                                                               
James Caithie / Avi         Cairn Financial Advisers LLP   [phone]
Robinson                                                                       
                                                                               
JohnHowes / Alice Lane /    Northland Capital Partners     [phone]
Luke Cairns                 Limited                                            
                                                                               
Chris Rourke / Guy Wheatley Beaufort International         [phone]
                            Associates Limited                                 
                                                                               
Felicity Edwards/ Charlotte St Brides Media and Finance    [phone]
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, which 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 extends 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-style gold mineralisation has also been identified at
various prospects within the licence area. Greenstone-style 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.