Placing to raise £600,000

26 November 2014

                              Sula Iron & Gold plc                              

                           ("Sula" or the "Company")                           

                           Placing to raise £600,000                            

Sula Iron and Gold plc, a multi-commodity exploration company focused on Sierra
Leone, announces that it has raised £600,000, through a placing of 36,363,636
new ordinary shares of 1p each in the Company (the "Placing Shares") at a price
of 1.65p per Placing Share with a single institutional investor (the "Placing").

The net proceeds of the Placing will be used to accelerate Sula's exploration
programmes, specifically its coltan programme. Conditional upon a positive
outcome to the Company's on-going coltan exploration programme, Sula will
consider commissioning a small pilot plant to process a number of bulk samples
from the Ferensola Project.

The potential benefits to Sula of putting in place this small processing plant
are in delivering suitable size, quality and timely samples to a potential
off-taker. In addition, the Company will gain a better understanding of the
metallurgy of the ore body, production and processing costs which, if
successful, may lead to a full mining licence.

Sula CEO Nick Warrell said:

"I am pleased to announce that we have raised these funds, in addition to those
announced on 14 November 2014, and the continuing support from our investors.
Discussions with a potential off-taker for our coltan are ongoing and these new
monies will allow us to accelerate this programme to a point where, dependent
on the outcome of the current phase of exploration, we will consider
establishing a small pilot processing plant for the coltan and all the benefits
that would result therefrom."

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 2 December 2014.

Following the issue and allotment of the Placing Shares, the Company's enlarged
issued ordinary share capital will comprise 356,848,594 Ordinary Shares ("
Enlarged Share Capital").  The Company does not hold any Ordinary Shares in
treasury. This figure of 356,848,594 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.

The information in this release that relates to Exploration Results has been
reviewed by Mr Andrew Dacey, Non-Executive Technical Director of Sula Iron and
Gold plc. Mr Dacey is a Fellow of the Institute of Materials Minerals and
Mining, a Registered Professional Geologist with the Australian Institute of
Geoscientists and a Competent Person as defined in the Australasian Code for
Reporting of Exploration Results and Mineral Resources and Ore Reserves.