Issue of Equity and Director’s Dealing

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

13 December 2013

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

                    Issue of Equity and Director's Dealing                     

Sula Iron & Gold plc, a multi-commodity exploration company focussed on Sierra
Leone announces that it has issued 4,217,878 new ordinary shares (`New Shares')
of 1 pence each in the capital of the Company (`Ordinary Shares') in settlement
of outstanding loans and fees totalling £84,357.56 owed by the Company at a
share price of 2 pence per New Share.

The New Shares will, when issued, rank pari passu in all respects with the
existing Ordinary Shares. Application has been made to the London Stock
Exchange for the New Shares to be admitted to trading on AIM and it is expected
that admission of the New Shares will become effective and that dealings in the
New Shares will commence at 8.00am on 18 December 2013 (`Admission').

Following Admission, the Company's enlarged issued share capital will comprise
166,184,552 Ordinary Shares with voting rights (`Enlarged Share Capital'). The
Company does not hold any shares in treasury. This figure of 166,184,552
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 New Shares will represent approximately 2.5% of the Enlarged Share Capital.
The effective issue price of 2p for each New Share represents a premium of
approximately 50% to the average mid-market closing price per Ordinary Share
over the last 5 trading days.

2,503,677 of the New Shares are being issued to Nick Warrell, CEO of the
Company, in settlement of interest free loans previously made by Mr Warrell to
the Company of £24,073.54, with the balance of £26,000.00 being in settlement
of outstanding directors' fees owed to Mr Warrell. Following the issue of the
New Shares, Mr Warrell's holding of Ordinary Shares in the Company will
increase to 47,503,677 Ordinary Shares, representing approximately 28.6% of the
Enlarged Share Capital.

1,475,161 of the New Shares are being issued to Brian Moritz, former chairman
of the Company, in settlement of interest free loans previously made by Mr
Moritz to the Company of £29,503.22. Following the issue of the New Shares, Mr
Moritz's holding of Ordinary Shares in the Company will increase to 12,225,161
Ordinary Shares, representing approximately 7.4% of the Enlarged Share Capital.

                                   **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.