Iron Drilling Update - Sierre Leone

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

2 September 2013

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

 Further Drill Results Confirm Significant Iron Prospectivity in Sierra Leone  

Sula Iron & Gold plc, a multi commodity exploration company focussed on Sierra
Leone, is pleased to announce the completion of a 2,000m drilling programme
targeting iron mineralisation and further positive assay results 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 (`the Licence'), which is
prospective for iron and gold.

Overview

  * Results from further two assays continue to confirm the Licence area's
    prospectivity for iron in line with strategy to delineate a maiden JORC
    compliant iron resource in 2014
   
  * Best intersections include 11.10m at 54.41% iron (`Fe') and 69.70m at
    37.28% Fe, highlighting mineralisation's high grade consistency - previous
    drill holes returned highs of 30.96m at 37.37% Fe and 6.14m at 55.67% Fe
   
  * Completed drilling programme has tested the strike continuity, thickness,
    and iron grade of a 2.2km section (Area 1) of 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
   
  * All nine holes drilled - four results announced so far, remaining holes to
    be announced as results received
   
  * Second phase programme planned to be implemented (subject to final drill
    results and funding requirements) 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 Licence area's value
    potential
   
Sula's Non-Executive Technical Director Gareth O'Donovan said, "I am pleased to
announce the completion of our initial drilling programme at our 100% owned
Licence. The drill results received so far continue to underpin the
prospectivity of the Licence, which is contiguous to the world-class 12.8Bt
Tonkolili Iron Mine in Sierra Leone. Encouragingly, with best intersections of
11.10m at 54.41% Fe and 69.70m at 37.28% Fe from the latest drill holes, and
having already returned results of 30.96m at 37.37% Fe and 6.14m at 55.67% Fe
from previous holes, the BIF appears to host consistently high grade iron
mineralisation. With all nine holes now drilled, I look forward to providing an
update on the results of the remaining five drill holes, as we continue to work
towards delineating a maiden JORC compliant resource in 2014 and defining the
Licence area's DSO potential.

"In addition to our iron focus, we continue to implement an active gold
exploration programme. With multiple gold prospects already identified within
the Licence area, which appear to host hard rock gold mineralisation, we plan
to conduct further mapping, sampling and drilling, in addition to further
reconnaissance work, in order to further prove up the exciting gold
prospectivity of the Licence area. I look forward to updating shareholders on
our gold and iron exploration activity in due course."

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 all
assay results have been 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.

Sula had initially planned to delineate a maiden JORC compliant iron resource
in 2013, however a slight delay with an initial drilling contractor and
processing of assays taking longer than anticipated meant that the wet season
encroached on the Company's drilling operations. Nonetheless, the drilling
programme has now been completed and the Board is highly encouraged by the
results received to date and remain focussed on continuing to prove up an iron
resource at the Licence.

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 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 comprised a total of nine drill holes, for
2,000m of drilling over a strike length of 2.2km. Results have been received
from four of the holes, and the remaining five are currently being logged and
sampled.

Results received to date confirm the presence of high grade iron
mineralisation. Drill results received from drill holes BHDD005 and BHDD006,
spaced 800m apart, returned best intersections of 11.10m at 54.41% iron (`Fe')
and 69.70m at 37.28% Fe. These results further support the previous drill
results received from BHDD003 and BHDD004 (see announcement dated 22 July 2013)
and confirm the high grade consistency of the iron mineralisation within the
Licence area. The initial drill results from BHDD003 and BHDD004 returned 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 WIDTH  Fe    P   SiO2  Al2O3     Comment     
                                   *                                             
         (m)    (m)     (m)                (%)  (%)   (%)   (%)                  
                                  (m)                                            
                                                                                 
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

* 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.

Figure 1: Map of drill hole locations:


Once all of the drill results have been 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 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                                            
                                                                               
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 key
Exploration Licence EL54/2011, 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 prove up the gold mineralisation in
2014, 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
appears to extend NE from the Tonkolili licence into Sula's licence area. In
August 2013 Sula completed a 2,000m scout drilling programme over a 2.2km
section of BIF, which confirmed the Licence area's prospectivity for
consistently high grade iron mineralisation with best results of 11.10m @
54.41% Fe and 69.70m @ 37.28% Fe. 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.