Completion of Initial Field Work Targeting Gold

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

8 January 2014

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

 Completion of Initial Field Work Targeting Gold Mineralisation, Sierra Leone  

Sula Iron & Gold plc, a multi-commodity exploration company focussed on Sierra
Leone, is pleased to announce the completion of a detailed ground magnetometer
and geochemical soil survey over several of its gold targets at its wholly
owned 153 km2 Ferensola Project (`Ferensola' or `the Project'). The Project,
which is prospective for both iron and gold is located within the northern
sector of the Sula-Kangari Greenstone Belt in Sierra Leone. The Company
anticipates receiving the results of the field work by the end of Q1 2014, and
intends to use these results to identify future drill targets. Please visit the
Company's website www.sulairongold.com for a map of Ferensola and the gold
target areas identified.

Ferensola is known to host gold mineralisation along deep seated faults,
lineaments and shear structures. Five primary gold mineralisation targets have
been identified to date within the licence area, and it is these targets which
the recent 2013-2014 field work focussed on. Detailed ground work comprising a
15 km2 geophysical and geochemical soil programme were completed. Over 150 line
km of ground magnetic surveying carried out on a 100m line spacing was
completed to delineate geological structures over two principal target areas -
the Lagunda and Yanfarina prospects. Additionally, more than 6,000 soil/
regolith samples have been collected on a 100m x 25m grid pattern. Following
the processing and interpretation of all geophysical and assay results, Sula
will be able to define robust drill targets at these two prospects.

The Lagunda and Yanfarina gold prospects are located within the western central
zone of the Project and occur at the peripheries of north-east trending
magnetic anomalies and interpreted as either lithological contacts and/or large
scale faulting. These structural features are very significant as they can
often act as conduits for mineralising fluids and providing model conditions
for potential primary gold mineralisation. Furthermore, the significant Lagunda
artisanal alluvial gold workings occur parallel and coincidently to the
magnetic trends and lithological boundaries and are considered to be above or
proximal to a primary gold mineralised structure.

Importantly, the Project is located a highly prospective area; the greenstone
belt which hosts Ferensola also includes Amara Mining Plc's Baomahun Gold
Project, which is located to the south of the Project and has a reported
resource of 2.78 Moz gold (`Au'). Furthermore, in addition to Lagunda and
Yanfarina prospects, multiple gold targets have been identified which remain to
be explored; historic drilling at the Dalakuru prospect has intercepted hard
rock gold mineralisation that is open in all directions, with highs of 8.72m @
10.46g/t Au and 1.55m @ 11.68g/t Au.

Sula Chief Executive Nick Warrell said, "I am pleased to announce that we have
completed our 2013-2014 field work programme, which targeted gold
mineralisation at our highly prospective, multi-commodity Ferensola Project.
With an initial focus on the Lagunda and Yanfarina prospects and further
targets yet to be explored, I am confident that we are set to significantly
enhance Ferensola's gold resource potential this coming year. Furthermore, Sula
continues to operate a dual exploration programme and is focussed on
delineating a maiden iron JORC resource later this year. As a result, 2014 is
shaping up to be a very exciting time for Sula, and I look forward to updating
shareholders on the results of this gold exploration, in addition to further
news on our iron ore exploration, in due course."

Structural intersections and geochemically anomalous zones within the survey
area have been initially identified through interpretation of the ground
magnetometer data and precursory analysis of the soil and regolith samples by
portable XRF analyser whilst onsite. Selected geochemical samples will be
submitted for full multi-element analysis at ALS Monrovia and ALS Loughrea,
Ireland respectively.

                                   **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 Ferensola
Project, in Northern Sierra Leone, which is highly prospective for iron and
gold. Sula is currently focussed on delineating a maiden JORC compliant iron
resource and proving up the gold mineralisation in 2014, by conducting soil
geochemistry and ground geophysics prior to a diamond drilling programme, in
order to maximise the Licence area's value potential. 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 Fe.

Exploration work at the project has confirmed the presence of Banded Iron
Formation (`BIF') at surface, which has a known strike length of 3.1km. The BIF
is proven to extend NE from the Tonkolili licence into Sula's licence area. A
2,000m scout drilling programme conducted over a 2.2km section of BIF,
confirmed the Licence area's prospectivity for consistently high grade iron
mineralisation. An exploration target of 500 million tonnes at 30.4% iron for
magnetite and 55% iron for hematite has been given by exploration consultants
SRK Exploration Services Ltd.

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.