Placing to raise £2.1 million and Director’s Dealing

Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources 7 March 2014 Sula Iron and Gold plc ("Sula" or the "Company") Placing to raise £2.1 million and Director's Dealing Sula Iron and Gold plc, a multi-commodity exploration company focussed onSierra Leone, announces that it has conditionally raised a total ofapproximately £2.1 million, through an oversubscribed placing of 93,333,272 newordinary shares of 1p each in the capital of the Company (the "Placing Shares")at a price of 2.25p per Placing Share (the "Placing Price") with institutionaland other investors ("Placees") (the "Placing"). Every four Placing Sharesalso include a warrant to subscribe for one further new ordinary share at 4pence per share ("the Warrants"). The net proceeds of the Placing will be usedto conduct further infill drilling to enable the Company to define a JORCDirect Shipping Ore Mineral Resource Estimate by the end of 2014 (the "DrillProgramme"), which will help to further determine the commercial value of theCompany's flagship Ferensola Iron and Gold Project located in the mineral richSula-Kangari Greenstone Belt in Sierra Leone (the "Project"). The Drill Programme, prepared by SRK Exploration Services, is anticipated tocommence next month, with the first drill core expected to be sent for analysiswithin weeks thereafter. The Company anticipates regular news flow and drillingupdates throughout the 2014 field season as it works towards defining a JORCresource. The Board's confidence in the Project's iron ore prospectivity is underpinnedby African Minerals Limited's ("African Minerals") contiguous 12.8Bt Tonkoliliiron mine. African Minerals has an integrated mine, rail and portinfrastructure in place, and made its first product shipment in November 2011.Significantly, African Minerals announced in January 2014 that exports totalled12.1Mt iron ("Fe") during 2013, with 3.8Mt Fe exported in Q4 2013 andproduction on track to achieve a 20Mtpa sustainable run rate. Sula CEO Nick Warrell said, "I am delighted to announce that we havesuccessfully raised £2.1 million. These funds will enable us to commence ourstated exploration objective; conducting infill drilling at our highlyprospective Ferensola Project, with the ultimate aim of defining a JORC DirectShipping Ore Mineral Resource Estimate by the end of the year. The Project'siron prospectivity is well established, with previous exploration demonstratingconsistently high grade iron mineralisation on a 2.2km section of a 3.1kmbanded iron formation, which is coincident with a strong linear magneticanomaly proven to extend from African Minerals' 12.8Bt iron Tonkolili licencearea. With a strengthened cash balance, highly prospective licence and definedexploration programme, this is a very exciting time of development for theCompany." The Placing Shares will, when issued, rank pari passu in all respects with theexisting ordinary shares of 1p each in the Company ("Ordinary Shares"). Application has been made to the London Stock Exchange for admission totrading on AIM of the Placing Shares ("Admission"). Completion of the Placingis conditional on, inter alia, Admission. It is expected that Admission will become effective and that dealings in thePlacing Shares will commence at 8.00 a.m. on 24 March 2014. As set out above,Placees will receive one Warrant for every four Placing Shares subscribed for,exercisable at a price of 4p per share for a period of three years from 24March 2014. Following the issue and allotment of the Placing Shares, the Company's enlargedissued ordinary share capital will comprise 281,484,958 Ordinary Shares ("Enlarged Share Capital"). The Company does not hold any Ordinary Shares intreasury. This figure of 281,484,958 Ordinary Shares may be used byshareholders in the Company as the denominator for the calculations by whichthey will determine if they are required to notify their interest in, or achange in their interest in, the share capital of the Company under theFinancial Conduct Authority's Disclosure and Transparency Rules. The Placing was conducted by Daniel Stewart & Company Plc and Allenby CapitalLimited. Director's Dealing The Company announces that Matt Wood, a director of the Company, has subscribedin the Placing for 444,444 Placing Shares at the Placing Price. As a result,Matt Wood is interested in 444,444 Ordinary Shares, representing 0.16% of theEnlarged Share Capital. **ENDS** For further information please visit www.sulairongold.com or contact thefollowing: Nick Warrell Sula Iron & Gold plc +44 (0) 78 1144 7830 Matt Wood Sula Iron & Gold plc +44 (2) 20 7583 8304 James Caithie / Avi Cairn Financial Advisers LLP +44 (0) 20 7148 7900Robinson Martin Lampshire / David Daniel Stewart & Company Plc +44 (0) 20 7776 6550Hart Chris Crawford / James Allenby Capital Ltd +44 (0) 20 3328 5656Reeve 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 153 sq. kmFerensola Project, in Northern Sierra Leone, which is highly prospective foriron and gold. The Company is focussed on delineating a maiden JORC compliantiron resource both on the DSO and magnetite in 2014, and proving up the goldmineralisation in order to maximise the Ferensola's value potential. Anexploration target of 500 million tonnes at 30.4% iron for magnetite has beengiven by exploration consultants SRK Exploration Services Ltd. Exploration work at Ferensola has confirmed the presence of Banded IronFormation ("BIF") at surface, which has a known strike length of 3.1km.Significantly, the BIF is proven to extend NE from African Mineral's 12.8billion tonne operational Tonkolili iron mine, into Sula's licence area, whichis located contiguously to Tonkolili. Furthermore, a 2,000m scout drillingprogramme conducted over a 2.2km section of BIF in July 2013, confirmedconsistently high grade iron mineralisation at Ferensola. 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. Field work has been carried out recently and, following theprocessing and interpretation of all geophysical and assay results, Sula willbe able to define robust drill targets at two principal target areas - theLagunda and Yanfarina prospects. Further targets are yet to be explored.