Commence 2,000m Drilling to Target Iron Mineralisation

SULA IRON & GOLD PLC - Commence 2,000m Drilling to Target Iron Mineralisation

PR Newswire

London, April 22

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

22 April 2013

Sula Iron & Gold plc, an iron ore and gold exploration company focussed onSierra Leone, is pleased to announce that iron resource drilling has commencedat its wholly owned 153 sq km iron and gold exploration area located in thenorthern part of the Sula-Kangari Greenstone Belt in Sierra Leone (`Licence').

Overview

Sula's Non-Executive Technical Director Gareth O'Donovan said, "Thecommencement of drilling marks a significant development in our explorationefforts. By testing the strike continuity, thickness and iron grade of the BIF,I am confident that this drilling programme will greatly enhance ourunderstanding of the exciting high grade iron mineralisation as we look todefine the projects iron's direct shipping ore potential and the estimation ofa maiden JORC compliant resource later in 2013. I look forward to updatingshareholders on the drilling programme in due course and also look forward toupdating the market on our gold activity; we continue to operate a dualcommodity exploration focus in order to prove up both the iron and goldpotential of our highly prospective Licence."

Exploration Update

The prospectivity for iron mineralisation in the form of BIF supergene enrichedoxidised zones is believed to be very good within the Licence area. PreviouslyExploration consultants SRK Exploration Services Ltd issued an explorationtarget for the Licence of 500Mt at 30.4% iron for magnetite and 55% iron forhaematite.

Following positive channel sampling results (see press release 25 February2013) which confirmed the presence of high grade iron mineralisation, with bestintersections of 18m at 51.83% Fe and 22m at 56.22% Fe, at the Licence, Sulahas implemented a 2,000m drilling programme.

The diamond drilling programme will comprise eight drill collars over a strikelength of 2.2km. Each hole will be drilled at an azimuth of 140˚ and a dip of50˚, to a downhole depth of 250 metres. In order to prove up the iron resourcepotential of the Licence, the drilling programme will test the strikecontinuity, thickness and iron grade of a 3.1km Banded Iron Formation (`BIF')located in target Area 1 (south-western part of the Licence), which is directlyalong strike from an undrilled magnetic high within African Minerals Limited's12.8 billion tonne Tonkolili iron mine.

Depending on the results of the diamond drilling, a second phase programme ofshallow vertical holes may be required to test Area 1's potential for directshipping ore (`DSO'). Initial field mapping completed in December 2012indicated that the BIF outcrops are variably oxidised to higher grade haematitemineralisation; such supergene processes are responsible for the formation ofthe higher grade DSO ores.

Felicity Edwards/ Charlotte St Brides Media and Finance +44 (0) 20 7236 1177Heap

Notes

Sula Iron & Gold plc is an iron ore and gold exploration company focussed onWest Africa. The Company's main objective is to explore and advance its keyExploration Licence EL54/2011, in Northern Sierra Leone, which boasts a dualcommodity focus and is highly prospective for iron and gold. The 153 sq kmlicence area is contiguous to African Minerals' operational Tonkolili ironmine, which has a JORC compliant resource of 12.8 billion tonnes.

Exploration work at the Project has confirmed the presence of banded ironformation (`BIF') at surface over a strike length of 3.1km and drill-ready. TheBIF extends NE from the Tonkolili mine into Sula's licence area. An explorationtarget of 500 million tonnes at 30.4% iron for magnetite and 55% iron forhematite has been given by independent exploration consultants SRK ExplorationServices Ltd.

Significant greenstone-style gold mineralisation has also been identified atvarious prospects within the licence area. Greenstone-style deposits aretypically located on or proximal to regional scale, deep seated faults andlineaments. Artisanal miners have exploited placer gold within the Project areafor more than 60 years, and active workings are observed in at least fiveseparate areas.