Adoption of Share Option Scheme and Issue of Op...

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

30 April 2014

                            Sula Iron and Gold plc                             

                     ("Sula" or the "Company" or "Group")                      

             Adoption of Share Option Scheme and Issue of Options              

Sula Iron and Gold plc, a multi-commodity exploration company focussed on
Sierra Leone, announces that on 29 April 2014 it adopted an unapproved share
option scheme and granted options over a total of 20,000,000 ordinary shares of
1p each in the Company ("Ordinary Shares"), representing approximately 7 per
cent. of the Company's current issued share capital, to the executive directors
as part of the Group's incentive and retention strategy ("Options").

Director        Options granted  Exercise price Vesting period    Total Options
                                                                           held
                                                                               
Nick Warrell         15,000,000    One third at     See below1       15,000,000
                                           3.5p                                
                                                                               
                                   One third at                                
                                           4.5p                                
                                                                               
                                   One third at                                
                                           5.5p                                
                                                                               
Matt Wood             5,000,000    One third at     See below1        5,000,000 2
                                           3.5p                                
                                                                               
                                   One third at                                
                                           4.5p                                
                                                                               
                                   One third at                                
                                           5.5p                                

1 The Options shall vest and become exercisable on the earlier of the first
anniversary of the date of grant or publication of the Company's maiden JORC
compliant direct shipping ore (DSO) mineral resource estimate for the Ferensola
project, as referred to in the Company's announcement of 7 March 2014 (JORC
Report). The Options are exercisable for five years from the vesting date and
are subject also to the option holder being in office or employment with the
Group at the vesting date.

2 In addition to these Options, Matt Wood holds warrants over 3,323,691
Ordinary Shares which are exercisable at a price of 2p per Ordinary Share, as
announced on 27 December 2013.

The grant of Options to Mr Warrell and Mr Wood is a related party transaction
for the purposes of AIM Rule 13, and, accordingly, is conditional upon the
approval of the independent director of the Company, in this case Mr Andrew
Dacey.

Mr Dacey, having consulted with Cairn Financial Advisers LLP, the Company's
nominated adviser, believes that the grant of Options outlined above is fair
and reasonable insofar as the Company's shareholders are concerned.  

                                   **ENDS**                                    

 

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

Sula Iron & Gold plc                                    [phone]
Nick Warrell / Matt Wood

Cairn Financial Advisers LLP                            [phone]
James Caithie / Avi Robinson

Daniel Stewart & Company Plc                            [phone]
Martin Lampshire / David Hart

Yellow Jersey PR                                        [phone]

Dominic Barretto

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 153 sq. km
Ferensola Project, in Northern Sierra Leone, which is highly prospective for
iron and gold. An exploration target of 500 million tonnes at 30.4% iron for
magnetite has been given by exploration consultants SRK Exploration Services
Ltd.

Exploration work at Ferensola has confirmed the presence of Banded Iron
Formation ("BIF") at surface, which has a known strike length of 3.1km.
Significantly, the BIF is proven to extend NE from African Mineral's 12.8
billion tonne operational Tonkolili iron mine, into Sula's licence area, which
is located contiguously to Tonkolili. Furthermore, a 2,000m scout drilling
programme conducted over a 2.2km section of BIF in July 2013, confirmed
consistently high grade iron mineralisation at Ferensola. The Company is
focussed on delineating a maiden JORC compliant iron resource on the DSO in
2014, and proving up the gold mineralisation in order to maximise the
Ferensola's value potential.

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. Field work has been carried out recently and, following the
processing and interpretation of all geophysical and assay results, Sula will
be able to define robust drill targets at two principal target areas - the
Lagunda and Yanfarina prospects. Further targets are yet to be explored.

SRK Exploration Services' independent valuation of the Company's Ferensola
Project in Sierra Leone, which is prospective for both iron and gold, is
available to view on the Company's website www.sulairongold.com (under the
Investors' section).