Final Iron Drilling Results - Sierre Leone

Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources 24 September 2013 Sula Iron & Gold plc (`Sula' or `the Company') Further Drill Results Confirm Significant Iron Prospectivity in Sierra Leone Sula Iron & Gold plc, an iron ore and gold exploration company focussed onSierra Leone, is pleased to announce that, further to the announcements of 2September and 9 September 2013, it has received the final positive assayresults from its nine hole 2,000m drilling programme targeting ironmineralisation at its wholly owned 153 sq km Ferensola Project, located in thenorthern part of the Sula-Kangari Greenstone Belt in Sierra Leone (`theLicence'), which is prospective for iron and gold. The full set of resultsconfirm Ferensola's prospectivity for iron and it is the Company's strategy todelineate a maiden resource in 2014. Overview * Final three assays demonstrate high grade iron consistency - 73.18m at 43.66% iron (`Fe'), 99.81m at 31.17% Fe and 43.73m at 33.89% Fe, * Drill programme tested the strike continuity, thickness, and iron grade of a 2.2km section (Area 1) of a 3.1km banded iron formation (`BIF'), which is coincident with a strong linear magnetic anomaly, proven to extend from African Minerals 12.8Bt iron Tonkolili licence area * Plan to conduct further infill drilling subject to funding requirements to delineate a JORC compliant iron ore resource in 2014 and a second phase programme to test direct shipping ore (`DSO') potential * Maintaining dual exploration programme to target the Licence area's iron and gold prospectivity in order to maximise the Ferensola value potential To view a full version of the announcement, including figures and maps, pleasevisit the Company's website at: www.sulairongold.com Sula's Non-Executive Technical Director Gareth O'Donovan said, "These finalresults further underpin Ferensola's prospectivity for iron, confirming aconsistent high grade zone of iron mineralisation over a 2.2km strike. With afurther 900m of undrilled BIF strike extent in Area 1 and several untestedanomalies offering further potential to further extend the known areas ofmineralisation within the Licence area, I believe we are well set to add valueand delineate an economic JORC resource. With the full results in hand, we arenow focussed on reviewing and interpreting the geological data with the aim ofrefining our exploration model and subject to funding requirements conductinginfill drilling for both BIF and DSO material in the near term and defining amaiden resource in 2014." Further Information In line with the Company's on-going exploration and development programme toadvance the Licence towards a maiden JORC compliant iron resource in 2014, Sulahas completed a scout drilling programme over a 2.2km section of the BandedIron Formation (`BIF'), which has a known strike length of 3.1km. Once theassay results have been fully analysed, Sula will look to test the entirestrike length in further drilling programmes, with the ultimate aim ofdelineating a JORC compliant iron ore resource in 2014 and testing the DSOpotential. The BIF is located in Area 1, in the southwest part of the Licence, and islocated directly along strike from an undrilled magnetic high within AfricanMinerals Limited's 12.8 billion tonne Tonkolili Licence. The drilling testedthe strike continuity, thickness and iron grade of the main BIF target atFerensola, which has been identified as a high priority target. The diamond drilling programme comprised a total of nine drill holes for 2,000mof drilling over a strike length of 2.2km. Positive iron interceptions havebeen received from all nine holes, confirming the presence of high grade ironmineralisation. Drill results received from drill holes BHDD001, BHDD002, and BHDD009 returnedbest intersections of 73.18m at 43.66% iron (`Fe'), 99.81m at 31.17% Fe and43.73m at 33.89% Fe (see Table 1 below for further details). These resultsfurther support the drill results received from the previous six holes (seeannouncement dated 9 September 2013, 2 September 2013 and 22 July 2013 andTable 2 below for details) and confirm the high grade consistency of the ironmineralisation within the Licence area. Table 1: Drilling Results: HOLE_ID FROM TO INTERVAL TRUE Fe (%) P SiO2 Al2O3 Comment WIDTH* ** (%) (%) (%) BHDD001 0.00 84.50 84.50 73.18 43.66 0.06 12.40 14.48 Oxidised BIF BHDD001 129.60 163.30 33.70 29.19 32.09 0.04 42.53 3.68 BIF BHDD002 75.75 92.60 16.85 14.59 40.30 0.09 22.15 10.33 BIF BHDD002 98.40 213.65 115.25 99.81 31.17 0.04 43.04 3.40 BIF with Amphibolite BHDD002 249.70 272.20 22.50 19.49 31.27 0.04 43.85 3.97 BIF BHDD009 0.00 50.50 50.50 43.73 33.89 0.05 1.04 8.83 Oxidised BIF BHDD009 86.70 118.50 31.80 27.54 32.04 0.05 25.99 6.56 BIF * calculated by SRK ES using cross-sectional interpretation of the mineralisedintercepts in three dimensions; used alpha angle intersection trigonometry,which has assumed the geologies constantly dipping at 70° NW and no holedeviation. ** calculated using a conservative core loss value of 0% Fe. All the data from this first phase drilling will be analysed in its entiretywith the aim of placing geological constraints on the mineralisation withinthree dimensions using GIS software. This will target both the main magnetitebody as well as the higher grade oxidised cap, which will aid in the planningof a second phase programme of shallow vertical holes which may be required totest Area 1's potential for DSO iron. Table 2: Best drill intersections from the full scout drilling programme HOLE_ID FROM TO INTERVAL TRUE Fe P SiO2 Al2O3 Comment WIDTH* (%)* (%) (%) (%) (m) (m) (m) (m) BHDD001 0.00 84.50 84.50 73.18 43.66 0.06 12.40 14.48 Oxidised BIF BHDD001 129.60 163.30 33.70 29.19 32.09 0.04 42.53 3.68 BIF BHDD002 75.75 92.60 16.85 14.59 40.30 0.09 22.15 10.33 BIF BHDD002 98.40 213.65 115.25 99.81 31.17 0.04 43.04 3.40 BIF with Amphibolite BHDD002 249.70 272.20 22.50 19.49 31.27 0.04 43.85 3.97 BIF BHDD003 22.65 40.65 18.00 12.28 57.10 0.09 3.22 6.95 Oxidised BIF BHDD003 48.15 57.15 9.00 6.14 55.67 0.17 9.39 2.21 Oxidised BIF BHDD003 57.15 102.55 45.40 30.96 38.89 0.04 34.94 4.13 BIF BHDD004 88.65 120.17 31.52 27.30 35.97 0.05 40.95 2.81 BIF BHDD004 150.10 168.50 18.40 15.93 37.43 0.04 39.28 1.22 BIF BHDD004 176.80 199.75 22.95 19.88 34.82 0.04 41.69 2.51 BIF BHDD005 49.00 62.10 13.10 11.10 54.41 0.08 8.14 6.36 Oxidised BIF Zone BHDD005 80.35 109.50 29.15 24.70 32.13 0.06 43.42 5.59 BIF BHDD006 51.65 132.95 81.30 69.70 37.28 0.06 32.66 6.13 BIF BHDD006 141.00 155.95 14.95 12.81 37.84 0.04 38.97 1.03 BIF BHDD006 208.75 225.00 16.25 13.29 36.70 0.04 40.23 1.11 BIF BHDD006 227.00 230.55 3.55 3.04 38.32 0.05 39.21 0.71 BIF BHDD007 11.00 45.30 34.30 29.70 52.25 0.07 4.75 10.72 BIF BHDD007 48.95 65.80 16.85 14.59 55.54 0.07 8.13 4.18 BIF BHDD008 1.28 11.90 10.62 9.19 36.52 0.14 6.91 24.14 Surface Material BHDD008 25.30 39.00 13.70 1.86 42.08 0.15 15.48 13.48 BIF BHDD008 42.80 47.10 4.30 3.72 41.59 0.06 26.27 6.69 BIF BHDD008 139.80 186.00 46.20 40.01 29.98 0.04 44.32 3.36 BIF with Amphibolite BHDD008 210.40 237.30 26.90 23.29 35.64 0.04 39.88 2.03 BIF with Amphibolite BHDD009 0.00 50.50 50.50 43.73 33.89 0.05 1.04 8.83 Oxidised BIF BHDD009 86.70 118.50 31.80 27.54 32.04 0.05 25.99 6.56 BIF * calculated by SRK ES using cross-sectional interpretation of the mineralisedintercepts in three dimensions; used alpha angle intersection trigonometry,which has assumed the geologies constantly dipping at 70° NW and no holedeviation. ** calculated using a conservative core loss value of 0% Fe. Quality Assurance / Quality Control (QA/QC) Sample intervals are reported as both metres downhole and as true thickness,which have been calculated by SRK Exploration Services using cross-sectionalinterpretation of the mineralised intercepts in three dimensions, and orientedcore. The actual dip of the BIF varies but is generally fairly steep. All samples were sent by courier to ALS Preparation Laboratory in Monrovia,Liberia then sent to The ALS Group Laboratory in Johannesburg, South Africa, aSANAS accredited laboratory for analyses by XRF. A set of standards, duplicates and blanks is inserted by SRK ES into the samplestream on a regular basis in addition to the laboratory's own internal QA/QCstandards and duplicates. QA/QC results are well within the accepted norm. **ENDS** For further information please visit www.sulairongold.com or contact thefollowing: Nick Warrell Sula Iron & Gold plc +44 (0) 7811 447830 James Caithie / Avi Cairn Financial Advisers LLP +44 (0) 20 7148 7900Robinson John Howes / Alice Lane Northland Capital Partners +44 (0) 20 7796 8800 Limited Felicity Edwards / St Brides Media and Finance +44 (0) 20 7236 1177Charlotte Heap Ltd 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 FerensolaProject, in Northern Sierra Leone, which is highly prospective for iron andgold. Sula is currently focussed on delineating a maiden JORC compliant ironresource and proving up the gold mineralisation in 2014, by conducting soilgeochemistry and ground geophysics prior to a diamond drilling programme, inorder to maximise the Licence area's value potential. The 153 sq km licencearea is contiguous to African Minerals' operational Tonkolili Iron Mine, whichhas a JORC compliant resource of 12.8 billion tonnes Fe. Exploration work at the project has confirmed the presence of Banded IronFormation (`BIF') at surface, which has a known strike length of 3.1km. The BIFis proven to extend NE from the Tonkolili licence into Sula's licence area. A2,000m scout drilling programme conducted over a 2.2km section of BIF,confirmed the Licence area's prospectivity for consistently high grade ironmineralisation. An exploration target of 500 million tonnes at 30.4% iron formagnetite and 55% iron for hematite has been given by independent explorationconsultants SRK Exploration Services Ltd. 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.