Issue of Equity and Director’s Dealing

Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources 13 December 2013 Sula Iron & Gold plc (`Sula' or `the Company') Issue of Equity and Director's Dealing Sula Iron & Gold plc, a multi-commodity exploration company focussed on SierraLeone announces that it has issued 4,217,878 new ordinary shares (`New Shares')of 1 pence each in the capital of the Company (`Ordinary Shares') in settlementof outstanding loans and fees totalling £84,357.56 owed by the Company at ashare price of 2 pence per New Share. The New Shares will, when issued, rank pari passu in all respects with theexisting Ordinary Shares. Application has been made to the London StockExchange for the New Shares to be admitted to trading on AIM and it is expectedthat admission of the New Shares will become effective and that dealings in theNew Shares will commence at 8.00am on 18 December 2013 (`Admission'). Following Admission, the Company's enlarged issued share capital will comprise166,184,552 Ordinary Shares with voting rights (`Enlarged Share Capital'). TheCompany does not hold any shares in treasury. This figure of 166,184,552Ordinary Shares may be used by shareholders in the Company as the denominatorfor the calculations by which they will determine if they are required tonotify their interest in, or a change in their interest in, the share capitalof the Company under the FCA's Disclosure and Transparency Rules. The New Shares will represent approximately 2.5% of the Enlarged Share Capital.The effective issue price of 2p for each New Share represents a premium ofapproximately 50% to the average mid-market closing price per Ordinary Shareover the last 5 trading days. 2,503,677 of the New Shares are being issued to Nick Warrell, CEO of theCompany, in settlement of interest free loans previously made by Mr Warrell tothe Company of £24,073.54, with the balance of £26,000.00 being in settlementof outstanding directors' fees owed to Mr Warrell. Following the issue of theNew Shares, Mr Warrell's holding of Ordinary Shares in the Company willincrease to 47,503,677 Ordinary Shares, representing approximately 28.6% of theEnlarged Share Capital. 1,475,161 of the New Shares are being issued to Brian Moritz, former chairmanof the Company, in settlement of interest free loans previously made by MrMoritz to the Company of £29,503.22. Following the issue of the New Shares, MrMoritz's holding of Ordinary Shares in the Company will increase to 12,225,161Ordinary Shares, representing approximately 7.4% of the Enlarged Share Capital. **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.