Iron Drilling Update - Sierre Leone

Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources 2 September 2013 Sula Iron & Gold plc (`Sula' or `the Company') Further Drill Results Confirm Significant Iron Prospectivity in Sierra Leone Sula Iron & Gold plc, a multi commodity exploration company focussed on SierraLeone, is pleased to announce the completion of a 2,000m drilling programmetargeting iron mineralisation and further positive assay results at its whollyowned 153 sq km Blue Horizon licence area located in the northern part of theSula-Kangari Greenstone Belt in Sierra Leone (`the Licence'), which isprospective for iron and gold. Overview * Results from further two assays continue to confirm the Licence area's prospectivity for iron in line with strategy to delineate a maiden JORC compliant iron resource in 2014 * Best intersections include 11.10m at 54.41% iron (`Fe') and 69.70m at 37.28% Fe, highlighting mineralisation's high grade consistency - previous drill holes returned highs of 30.96m at 37.37% Fe and 6.14m at 55.67% Fe * Completed drilling programme has tested the strike continuity, thickness, and iron grade of a 2.2km section (Area 1) of 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 * All nine holes drilled - four results announced so far, remaining holes to be announced as results received * Second phase programme planned to be implemented (subject to final drill results and funding requirements) 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 Licence area's value potential Sula's Non-Executive Technical Director Gareth O'Donovan said, "I am pleased toannounce the completion of our initial drilling programme at our 100% ownedLicence. The drill results received so far continue to underpin theprospectivity of the Licence, which is contiguous to the world-class 12.8BtTonkolili Iron Mine in Sierra Leone. Encouragingly, with best intersections of11.10m at 54.41% Fe and 69.70m at 37.28% Fe from the latest drill holes, andhaving already returned results of 30.96m at 37.37% Fe and 6.14m at 55.67% Fefrom previous holes, the BIF appears to host consistently high grade ironmineralisation. With all nine holes now drilled, I look forward to providing anupdate on the results of the remaining five drill holes, as we continue to worktowards delineating a maiden JORC compliant resource in 2014 and defining theLicence area's DSO potential. "In addition to our iron focus, we continue to implement an active goldexploration programme. With multiple gold prospects already identified withinthe Licence area, which appear to host hard rock gold mineralisation, we planto conduct further mapping, sampling and drilling, in addition to furtherreconnaissance work, in order to further prove up the exciting goldprospectivity of the Licence area. I look forward to updating shareholders onour gold and iron exploration activity in due course." 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 allassay results have been analysed, Sula will look to test the entire strikelength in further drilling programmes, with the ultimate aim of delineating aJORC compliant iron ore resource in 2014 and testing the DSO potential. Sula had initially planned to delineate a maiden JORC compliant iron resourcein 2013, however a slight delay with an initial drilling contractor andprocessing of assays taking longer than anticipated meant that the wet seasonencroached on the Company's drilling operations. Nonetheless, the drillingprogramme has now been completed and the Board is highly encouraged by theresults received to date and remain focussed on continuing to prove up an ironresource at the Licence. 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 aims totest the strike continuity, thickness and iron grade of the main BIF target atthe Dalakuru Prospect, which has been identified as a high priority target. The diamond drilling programme comprised a total of nine drill holes, for2,000m of drilling over a strike length of 2.2km. Results have been receivedfrom four of the holes, and the remaining five are currently being logged andsampled. Results received to date confirm the presence of high grade ironmineralisation. Drill results received from drill holes BHDD005 and BHDD006,spaced 800m apart, returned best intersections of 11.10m at 54.41% iron (`Fe')and 69.70m at 37.28% Fe. These results further support the previous drillresults received from BHDD003 and BHDD004 (see announcement dated 22 July 2013)and confirm the high grade consistency of the iron mineralisation within theLicence area. The initial drill results from BHDD003 and BHDD004 returned bestintersections of 30.96m at 37.37% Fe and 6.14m at 55.67% Fe. Table 1: Drilling Results: HOLE_ID FROM TO INTERVAL TRUE WIDTH Fe P SiO2 Al2O3 Comment * (m) (m) (m) (%) (%) (%) (%) (m) 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 * 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. Figure 1: Map of drill hole locations: Once all of the drill results have been analysed a second phase programme ofshallow vertical holes may be required to test Area 1's potential for directshipping ore (`DSO') iron. 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. 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 drill core is transported by Company personnel from the drill site to anearby secure storage facility for logging and sampling. Sampling intervals aredefined after core logging and estimation of iron content. The core is splitand half of the core is sent for assay, while the other half is retained in thecore boxes. Samples are sent by courier to ALS Preparation Laboratory in Monrovia, Liberiathen sent to The ALS Group Laboratory in Johannesburg, South Africa, a SANASaccredited 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 to date are well within the acceptednorm. **ENDS** For further information please visit www.sulairongold.com or contact thefollowing: Gavin Burnell Sula Iron & Gold plc +44 (0) 20 7796 8800 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 keyExploration Licence EL54/2011, in Northern Sierra Leone, which is highlyprospective for iron and gold. Sula is currently focussed on delineating amaiden JORC compliant iron resource and prove up the gold mineralisation in2014, in order to maximise the Licence area's value potential. The 153 sq kmlicence area is contiguous to African Minerals' operational Tonkolili IronMine, which has 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 BIFappears to extend NE from the Tonkolili licence into Sula's licence area. InAugust 2013 Sula completed a 2,000m scout drilling programme over a 2.2kmsection of BIF, which confirmed the Licence area's prospectivity forconsistently high grade iron mineralisation with best results of 11.10m @54.41% Fe and 69.70m @ 37.28% Fe. An exploration target of 500 million tonnesat 30.4% iron for magnetite and 55% iron for hematite has been given byindependent exploration consultants 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.