Commenced Drilling to Define DSO Mineral Resource

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

9 April 2014

               Sula Iron and Gold plc ("Sula" or the "Company")                

        Commenced Drilling to Define DSO Iron Mineral Resource Estimate        

Sula Iron and Gold plc, a multi-commodity exploration company focussed on
Sierra Leone, is pleased to announce that drilling has commenced at its
Ferensola Iron Project located in the mineral rich Sula-Kangari Greenstone Belt
in Sierra Leone (`Ferensola' or the `Project'), as part of a 2014 exploration
programme, which aims to define a JORC Direct Shipping Ore (`DSO') Iron Mineral
Resource Estimate by the end of 2014.

Overview

  * Commenced planned drill programme targeting DSO mineralisation contained in
    a 3.1km Banded Iron Formation, proven to extend from African Minerals
    Limited's 12.8Bt Tonkolili iron mine in Sierra Leone
   
  * Exploration follows nine hole 2,000m drill programme completed in September
    2013, which demonstrated consistently high grade iron, with highs of 14.59m
    @ 55.54% iron (`Fe') and 29.7m at 52.25% Fe
   
  * Drill programme prepared by leading mining consultants SRK Exploration
    Services
   
  * Steady news flow expected - first drill cores expected to be sent for
    analysis May 2014
   
  * Results to help underpin commercial value of Ferensola, which is
    prospective for both iron and gold
   
Sula CEO Nick Warrell said, "With infill drilling now underway, Sula is set to
significantly advance the Ferensola project as we look to prove up the iron
mineralisation potential with a focus on defining a JORC DSO Iron Mineral
Resource Estimate by the end of 2014. Defining a maiden resource will be a
major milestone for the Company and I am confident that with a fully funded
programme, a proven exploration team and established infrastructure we have the
necessary foundations in place to achieve this."

To view a full version of the announcement which includes pictures of the
drilling programme please visit the Company's website www.sulairongold.com.

                                   **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 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.

Ferensola's ability to host a commercial iron deposit is underpinned by African
Minerals Limited's (`African Minerals') 12.8Bt Tonkolili iron mine. African
Minerals has an integrated mine, rail and port infrastructure in place, and
exported a total of 12.1Mt Fe during 2013, with 3.8Mt Fe exported in Q4 2013
and operations on track to achieve a 20Mtpa sustainable run.

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.