Final Iron Drilling Results - Sierre Leone

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

24 September 2013

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

 Further Drill Results Confirm Significant Iron Prospectivity in Sierra Leone  

Sula Iron & Gold plc, an iron ore and gold exploration company focussed on
Sierra Leone, is pleased to announce that, further to the announcements of 2
September and 9 September 2013, it has received the final positive assay
results from its nine hole 2,000m drilling programme targeting iron
mineralisation at its wholly owned 153 sq km Ferensola Project, located in the
northern part of the Sula-Kangari Greenstone Belt in Sierra Leone (`the
Licence'), which is prospective for iron and gold. The full set of results
confirm Ferensola's prospectivity for iron and it is the Company's strategy to
delineate a maiden resource in 2014.

Overview

  * Final three assays demonstrate high grade iron consistency - 73.18m at
    43.66% iron (`Fe'), 99.81m at 31.17% Fe and 43.73m at 33.89% Fe,
   
  * Drill programme tested the strike continuity, thickness, and iron grade of
    a 2.2km section (Area 1) of a 3.1km banded iron formation (`BIF'), which is
    coincident with a strong linear magnetic anomaly, proven to extend from
    African Minerals 12.8Bt iron Tonkolili licence area
   
  * Plan to conduct further infill drilling subject to funding requirements to
    delineate a JORC compliant iron ore resource in 2014 and a second phase
    programme to test direct shipping ore (`DSO') potential
   
  * Maintaining dual exploration programme to target the Licence area's iron
    and gold prospectivity in order to maximise the Ferensola value potential
   
To view a full version of the announcement, including figures and maps, please
visit the Company's website at: www.sulairongold.com

Sula's Non-Executive Technical Director Gareth O'Donovan said, "These final
results further underpin Ferensola's prospectivity for iron, confirming a
consistent high grade zone of iron mineralisation over a 2.2km strike. With a
further 900m of undrilled BIF strike extent in Area 1 and several untested
anomalies offering further potential to further extend the known areas of
mineralisation within the Licence area, I believe we are well set to add value
and delineate an economic JORC resource. With the full results in hand, we are
now focussed on reviewing and interpreting the geological data with the aim of
refining our exploration model and subject to funding requirements conducting
infill drilling for both BIF and DSO material in the near term and defining a
maiden resource in 2014."

Further Information

In line with the Company's on-going exploration and development programme to
advance the Licence towards a maiden JORC compliant iron resource in 2014, Sula
has completed a scout drilling programme over a 2.2km section of the Banded
Iron Formation (`BIF'), which has a known strike length of 3.1km. Once the
assay results have been fully analysed, Sula will look to test the entire
strike length in further drilling programmes, with the ultimate aim of
delineating a JORC compliant iron ore resource in 2014 and testing the DSO
potential.

The BIF is located in Area 1, 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 tested
the strike continuity, thickness and iron grade of the main BIF target at
Ferensola, which has been identified as a high priority target.

The diamond drilling programme comprised a total of nine drill holes for 2,000m
of drilling over a strike length of 2.2km. Positive iron interceptions have
been received from all nine holes, confirming the presence of high grade iron
mineralisation.

Drill results received from drill holes BHDD001, BHDD002, and BHDD009 returned
best intersections of 73.18m at 43.66% iron (`Fe'), 99.81m at 31.17% Fe and
43.73m at 33.89% Fe (see Table 1 below for further details). These results
further support the drill results received from the previous six holes (see
announcement dated 9 September 2013, 2 September 2013 and 22 July 2013 and
Table 2 below for details) and confirm the high grade consistency of the iron
mineralisation within the Licence area.

Table 1: Drilling Results:

HOLE_ID  FROM    TO   INTERVAL   TRUE   Fe (%)  P    SiO2  Al2O3     Comment    
                                WIDTH*    **   (%)   (%)    (%)                 
                                                                                
BHDD001   0.00  84.50    84.50    73.18  43.66 0.06  12.40  14.48 Oxidised BIF  
                                                                                
BHDD001 129.60 163.30    33.70    29.19  32.09 0.04  42.53   3.68 BIF           
                                                                                
BHDD002  75.75  92.60    16.85    14.59  40.30 0.09  22.15  10.33 BIF           
                                                                                
BHDD002  98.40 213.65   115.25    99.81  31.17 0.04  43.04   3.40 BIF with      
                                                                  Amphibolite   
                                                                                
BHDD002 249.70 272.20    22.50    19.49  31.27 0.04  43.85   3.97 BIF           
                                                                                
BHDD009   0.00  50.50    50.50    43.73  33.89 0.05   1.04   8.83 Oxidised BIF  
                                                                                
BHDD009  86.70 118.50    31.80    27.54  32.04 0.05  25.99   6.56 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.

** calculated using a conservative core loss value of 0% Fe.

All the data from this first phase drilling will be analysed in its entirety
with the aim of placing geological constraints on the mineralisation within
three dimensions using GIS software. This will target both the main magnetite
body as well as the higher grade oxidised cap, which will aid in the planning
of a second phase programme of shallow vertical holes which may be required to
test Area 1's potential for DSO iron.

Table 2: Best drill intersections from the full scout drilling programme

HOLE_ID  FROM    TO   INTERVAL   TRUE    Fe    P    SiO2  Al2O3     Comment    
                                WIDTH*  (%)*  (%)   (%)    (%)                 
         (m)    (m)     (m)                                                    
                                 (m)                                           
                                                                               
BHDD001   0.00  84.50    84.50    73.18 43.66 0.06  12.40  14.48 Oxidised BIF  
                                                                               
BHDD001 129.60 163.30    33.70    29.19 32.09 0.04  42.53   3.68 BIF           
                                                                               
BHDD002  75.75  92.60    16.85    14.59 40.30 0.09  22.15  10.33 BIF           
                                                                               
BHDD002  98.40 213.65   115.25    99.81 31.17 0.04  43.04   3.40 BIF with      
                                                                 Amphibolite   
                                                                               
BHDD002 249.70 272.20    22.50    19.49 31.27 0.04  43.85   3.97 BIF           
                                                                               
BHDD003  22.65  40.65    18.00    12.28 57.10 0.09   3.22   6.95 Oxidised BIF  
                                                                               
BHDD003  48.15  57.15     9.00     6.14 55.67 0.17   9.39   2.21 Oxidised BIF  
                                                                               
BHDD003  57.15 102.55    45.40    30.96 38.89 0.04  34.94   4.13 BIF           
                                                                               
BHDD004  88.65 120.17    31.52    27.30 35.97 0.05  40.95   2.81 BIF           
                                                                               
BHDD004 150.10 168.50    18.40    15.93 37.43 0.04  39.28   1.22 BIF           
                                                                               
BHDD004 176.80 199.75    22.95    19.88 34.82 0.04  41.69   2.51 BIF           
                                                                               
BHDD005  49.00  62.10    13.10    11.10 54.41 0.08   8.14   6.36 Oxidised BIF  
                                                                 Zone          
                                                                               
BHDD005  80.35 109.50    29.15    24.70 32.13 0.06  43.42   5.59 BIF           
                                                                               
BHDD006  51.65 132.95    81.30    69.70 37.28 0.06  32.66   6.13 BIF           
                                                                               
BHDD006 141.00 155.95    14.95    12.81 37.84 0.04  38.97   1.03 BIF           
                                                                               
BHDD006 208.75 225.00    16.25    13.29 36.70 0.04  40.23   1.11 BIF           
                                                                               
BHDD006 227.00 230.55     3.55     3.04 38.32 0.05  39.21   0.71 BIF           
                                                                               
BHDD007  11.00  45.30    34.30    29.70 52.25 0.07   4.75  10.72 BIF           
                                                                               
BHDD007  48.95  65.80    16.85    14.59 55.54 0.07   8.13   4.18 BIF           
                                                                               
BHDD008   1.28  11.90    10.62     9.19 36.52 0.14   6.91  24.14 Surface       
                                                                 Material      
                                                                               
BHDD008  25.30  39.00    13.70     1.86 42.08 0.15  15.48  13.48 BIF           
                                                                               
BHDD008  42.80  47.10     4.30     3.72 41.59 0.06  26.27   6.69 BIF           
                                                                               
BHDD008 139.80 186.00    46.20    40.01 29.98 0.04  44.32   3.36 BIF with      
                                                                 Amphibolite   
                                                                               
BHDD008 210.40 237.30    26.90    23.29 35.64 0.04  39.88   2.03 BIF with      
                                                                 Amphibolite   
                                                                               
BHDD009   0.00  50.50    50.50    43.73 33.89 0.05   1.04   8.83 Oxidised BIF  
                                                                               
BHDD009  86.70 118.50    31.80    27.54 32.04 0.05  25.99   6.56 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.

** calculated using a conservative core loss value of 0% Fe.

Quality Assurance / Quality Control (QA/QC)

Sample intervals are reported as both metres 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 samples were 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 are well within the accepted norm.

                                   **ENDS**                                    

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

Nick Warrell                Sula Iron & Gold plc           [phone] 
                                                                               
James Caithie / Avi         Cairn Financial Advisers LLP   [phone]
Robinson                                                                       
                                                                               
John Howes / Alice Lane     Northland Capital Partners     [phone]
                            Limited                                            
                                                                               
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 independent 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.