Adoption of Share Option Scheme and Issue of Options

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 onSierra Leone, announces that on 29 April 2014 it adopted an unapproved shareoption scheme and granted options over a total of 20,000,000 ordinary shares of1p each in the Company ("Ordinary Shares"), representing approximately 7 percent. of the Company's current issued share capital, to the executive directorsas 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 firstanniversary of the date of grant or publication of the Company's maiden JORCcompliant direct shipping ore (DSO) mineral resource estimate for the Ferensolaproject, as referred to in the Company's announcement of 7 March 2014 (JORCReport). The Options are exercisable for five years from the vesting date andare subject also to the option holder being in office or employment with theGroup at the vesting date. 2 In addition to these Options, Matt Wood holds warrants over 3,323,691Ordinary Shares which are exercisable at a price of 2p per Ordinary Share, asannounced on 27 December 2013. The grant of Options to Mr Warrell and Mr Wood is a related party transactionfor the purposes of AIM Rule 13, and, accordingly, is conditional upon theapproval of the independent director of the Company, in this case Mr AndrewDacey. Mr Dacey, having consulted with Cairn Financial Advisers LLP, the Company'snominated adviser, believes that the grant of Options outlined above is fairand reasonable insofar as the Company's shareholders are concerned. **ENDS** For further information please visit www.sulairongold.com or contact thefollowing: Sula Iron & Gold plc +44 (0) 20 7583 8304Nick Warrell / Matt Wood Cairn Financial Advisers LLP +44 (0) 20 7148 7900James Caithie / Avi Robinson Daniel Stewart & Company Plc +44 (0) 20 7776 6550Martin Lampshire / David Hart Yellow Jersey PR +44 (0)7768 537 739 Dominic Barretto Notes Sula Iron & Gold plc is a multi-commodity exploration company focussed on WestAfrica. The Company's main objective is to explore and advance its 153 sq. kmFerensola Project, in Northern Sierra Leone, which is highly prospective foriron and gold. An exploration target of 500 million tonnes at 30.4% iron formagnetite has been given by exploration consultants SRK Exploration ServicesLtd. Exploration work at Ferensola has confirmed the presence of Banded IronFormation ("BIF") at surface, which has a known strike length of 3.1km.Significantly, the BIF is proven to extend NE from African Mineral's 12.8billion tonne operational Tonkolili iron mine, into Sula's licence area, whichis located contiguously to Tonkolili. Furthermore, a 2,000m scout drillingprogramme conducted over a 2.2km section of BIF in July 2013, confirmedconsistently high grade iron mineralisation at Ferensola. The Company isfocussed on delineating a maiden JORC compliant iron resource on the DSO in2014, and proving up the gold mineralisation in order to maximise theFerensola's value potential. Significant Greenstone Belt-style gold mineralisation has also been identifiedat various prospects within the licence area. Five target areas for hard rockgold mineralisation have been identified based on the location of historicdrill intercepts, the source areas for alluvial gold deposits, and the positionof major structures as defined by airborne magnetic data and drainageorientation. Field work has been carried out recently and, following theprocessing and interpretation of all geophysical and assay results, Sula willbe able to define robust drill targets at two principal target areas - theLagunda and Yanfarina prospects. Further targets are yet to be explored. SRK Exploration Services' independent valuation of the Company's FerensolaProject in Sierra Leone, which is prospective for both iron and gold, isavailable to view on the Company's website www.sulairongold.com (under theInvestors' section).