GBP800,000 Placing

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

10 October 2013

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

£800,000 Placing to Prove Up Iron and Gold Mineralisation at Ferensola Project,
                                 Sierra Leone                                  

Sula Iron & Gold plc, a multi-commodity exploration company focussed on Sierra
Leone, is pleased to announce that it has raised £800,000 by way of a placing
of 40,000,000 new ordinary shares in the capital of the Company (`the Placing
Shares') at a price of 2 pence per Placing Share (`the Placing') with a range
of institutional and other investors (`the Placees'). Each Placing Share
includes a warrant to subscribe for a further new ordinary share at 3 pence per
share (`the Warrants'), subject to the approval of Sula shareholders as more
fully described below. The funds raised will be used to advance the Company's
wholly owned 153 sq km Ferensola Project (the `Project' or `Ferensola'),
located in the northern part of the Sula-Kangari Greenstone Belt in Sierra
Leone, which is prospective for iron and gold, as well as for general working
capital purposes.

Recent exploration work completed in September 2013 confirmed Ferensola's iron
prospectivity, with a 2,000m drill programme intersecting highs of 12.28m @
57.10% iron (`Fe'), 14.59m @ 55.54% Fe and 73.18m @ 43.66% Fe (see announcement
dated 24 September 2013). The Company drill tested a 2.2km strike of a 3.1km
Banded Iron Formation (`BIF') coincident with a strong linear magnetic anomaly
proven to extend from African Minerals Limited's (`AML') operational Tonkolili
iron mine (`Tonkolili'), which hosts a 12.8 billion tonne resource.
Consequently, Sula will utilise the funds raised through the Placing to
implement a second phase exploration programme to test the direct shipping ore
(`DSO') potential of the project.

Sula's CEO Nick Warrell said, "With a strengthened cash position, exciting
exploration results in hand and defined development programmes in place, I
believe Sula is well set to advance Ferensola and unlock the Project's inherent
value. Work to date has confirmed that the Project is highly prospective for
both iron and gold, and we are focused on delineating a maiden JORC compliant
iron resource in 2014 and proving up the gold mineralisation.

"Interestingly, in terms of our iron exposure, Tonkolili, which is contiguous
to Ferensola, has recently been subject to a US$990m proposed strategic
investment by Tianjin Materials and Equipment Group Corporation, which values
Tonkolili at US$6 billion. This valuation, we believe, further underpins the
region's prospectivity and Sula's significant upside potential, which we hope
to unlock through future exploration."

Further Information

The Placing Shares will, when issued, rank pari passu in all respects with the
existing ordinary shares of the Company. Application has been made to the
London Stock Exchange for 37,110,000 of the Placing Shares to be admitted to
trading on AIM (`the First Admission'). It is expected that admission of these
shares will become effective and that dealings in such 37,110,000 Placing
Shares will commence at 8.00am on 15 October 2013.

Application will be made to the London Stock Exchange on or around 17 October
for the remaining 2,890,000 Placing Shares to be admitted to trading on AIM
(the "Second Admission"), and it is expected that the Second Admission will
become effective and that dealings in such 2,890,000 Placing Shares will
commence on or around 24 October 2013. A further announcement will be made to
confirm this.

As set out above, Placees will receive one Warrant for every Placing Share
subscribed for, exercisable at 3p per share for a period of three years from 15
October 2013. Exercise of the Warrants is subject to shareholder approval for
an increase in the Company's authority to issue and allot new ordinary shares,
to be sought at a general meeting of the Company to be held as soon as
practicable. Such increase in the Company's authority to issue and allot new
ordinary shares is being sought not only to enable any exercise of outstanding
warrants and options, but also to enable the Company to raise further funds in
the future.

A circular will be sent to shareholders shortly convening a general meeting and
a further announcement will be made when the circular is posted.

Following the First Admission, the Company's enlarged issued share capital will
comprise 159,076,674 ordinary shares with voting rights. The Company does not
hold any shares in treasury. This figure of 159,076,674 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 FCA's
Disclosure and Transparency Rules.

The Placing has been conducted by Daniel Stewart & Company Plc.

                                   **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                                                                       
                                                                               
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 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 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.