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 SierraLeone, is pleased to announce that it has raised £800,000 by way of a placingof 40,000,000 new ordinary shares in the capital of the Company (`the PlacingShares') at a price of 2 pence per Placing Share (`the Placing') with a rangeof institutional and other investors (`the Placees'). Each Placing Shareincludes a warrant to subscribe for a further new ordinary share at 3 pence pershare (`the Warrants'), subject to the approval of Sula shareholders as morefully described below. The funds raised will be used to advance the Company'swholly owned 153 sq km Ferensola Project (the `Project' or `Ferensola'),located in the northern part of the Sula-Kangari Greenstone Belt in SierraLeone, which is prospective for iron and gold, as well as for general workingcapital purposes. Recent exploration work completed in September 2013 confirmed Ferensola's ironprospectivity, 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 announcementdated 24 September 2013). The Company drill tested a 2.2km strike of a 3.1kmBanded Iron Formation (`BIF') coincident with a strong linear magnetic anomalyproven to extend from African Minerals Limited's (`AML') operational Tonkoliliiron mine (`Tonkolili'), which hosts a 12.8 billion tonne resource.Consequently, Sula will utilise the funds raised through the Placing toimplement 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, excitingexploration results in hand and defined development programmes in place, Ibelieve Sula is well set to advance Ferensola and unlock the Project's inherentvalue. Work to date has confirmed that the Project is highly prospective forboth iron and gold, and we are focused on delineating a maiden JORC compliantiron resource in 2014 and proving up the gold mineralisation. "Interestingly, in terms of our iron exposure, Tonkolili, which is contiguousto Ferensola, has recently been subject to a US$990m proposed strategicinvestment by Tianjin Materials and Equipment Group Corporation, which valuesTonkolili at US$6 billion. This valuation, we believe, further underpins theregion's prospectivity and Sula's significant upside potential, which we hopeto unlock through future exploration." Further Information The Placing Shares will, when issued, rank pari passu in all respects with theexisting ordinary shares of the Company. Application has been made to theLondon Stock Exchange for 37,110,000 of the Placing Shares to be admitted totrading on AIM (`the First Admission'). It is expected that admission of theseshares will become effective and that dealings in such 37,110,000 PlacingShares will commence at 8.00am on 15 October 2013. Application will be made to the London Stock Exchange on or around 17 Octoberfor 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 willbecome effective and that dealings in such 2,890,000 Placing Shares willcommence on or around 24 October 2013. A further announcement will be made toconfirm this. As set out above, Placees will receive one Warrant for every Placing Sharesubscribed for, exercisable at 3p per share for a period of three years from 15October 2013. Exercise of the Warrants is subject to shareholder approval foran 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 aspracticable. Such increase in the Company's authority to issue and allot newordinary shares is being sought not only to enable any exercise of outstandingwarrants and options, but also to enable the Company to raise further funds inthe future. A circular will be sent to shareholders shortly convening a general meeting anda further announcement will be made when the circular is posted. Following the First Admission, the Company's enlarged issued share capital willcomprise 159,076,674 ordinary shares with voting rights. The Company does nothold any shares in treasury. This figure of 159,076,674 ordinary shares may beused by shareholders in the Company as the denominator for the calculations bywhich they will determine if they are required to notify their interest in, ora change in their interest in, the share capital of the Company under the FCA'sDisclosure and Transparency Rules. The Placing has been conducted by Daniel Stewart & Company Plc. **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 Martin Lampshire / David Daniel Stewart & Company Plc +44 (0) 20 7776 6550Hart 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 exploration consultantsSRK 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.