Positive results from iron drilling in Sierra Leone

Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources 22 July 2013 Sula Iron & Gold plc (`Sula' or `the Company') Positive results from iron reconnaissance drilling programme in Sierra Leone Sula Iron & Gold plc, an iron ore and gold exploration company focussed onSierra Leone, is pleased to announce that it has received positive assayresults from the first two drill holes of its 2,000m drilling programmetargeting iron mineralisation at its wholly owned 153 sq km Blue Horizonlicence area located in the northern part of the Sula-Kangari Greenstone Beltin Sierra Leone, which is prospective for iron and gold (`Licence'). Overview * Initial results confirm presence of iron mineralisation with comparable grades to African Minerals Tonkolili Project, with best intersections of 30.96m at 37.37% iron (`Fe') and 6.14m at 55.67% Fe * Drilling focussed on `Area 1' to test the strike continuity, thickness and iron grade of a 3.1km banded iron formation (`BIF') * Area 1 is coincident with a strong linear magnetic anomaly extending from African Minerals 12.8Bt iron Tonkolili licence area * Eight holes out of the planned nine have been drilled to date - two results announced to day, remaining holes will be announced in due course * Depending on final drill results a second phase programme will be implemented to test direct shipping ore (`DSO') potential * Aim to delineate a maiden JORC compliant resource in 2013 Sula's Non-Executive Technical Director Gareth O'Donovan said, "I am delightedto announce this first set of positive drill results from our 100% ownedLicence that is contiguous to the world-class Tonkolili Mine in Sierra Leone.Results include intersections of 30.96m at 37.37% Fe and 6.14m at 55.67% Fetaken from our primary target Area 1, highlighting the prospectivity of theLicence. We look forward to updating the market shortly on the remaining assayresults which we hope will further enhance our understanding of the ironmineralisation, as we look to define the Licence's DSO potential and theestimation of a maiden JORC compliant resource later in 2013. In addition, wecontinue to operate a dual commodity exploration programme, and remain focussedon also proving the gold potential of our highly prospective Licence." To view a full version of the announcement, including figures and maps, pleasevisit the Company's website at: www.sulairongold.com Further Information As part of the Company's on-going exploration and development programme toadvance the licence towards a maiden iron resource, Sula is conducting diamonddrilling over a 3.1km section of the Banded Iron Formation (BIF) located in`Area 1'. Area 1 is in the southwest part of the Licence and is locateddirectly along strike from an undrilled magnetic high within African MineralsLimited's 12.8 billion tonne Tonkolili Licence. The drilling aims to test thestrike continuity, thickness and iron grade of the main BIF target at theDalakuru Prospect, which has been identified as a high priority target. The diamond drilling programme will comprise a total of nine drill holes, for2,000 metres of drilling over a strike length of 2.2km. To date eight holeshave been drilled at an azimuth of 140˚ and a dip of 50˚, to a downhole depthof 250 metres. Results have been received from two of the holes, two more havebeen summited to the laboratory and are awaiting results, and the remainingfour are currently being logged and sampled. Results received to date from the drilling programme confirm the presence ofhigh grade iron mineralisation, with best intersections of 30.96m at 37.37% Feand 6.14m at 55.67% Fe. Table 1: Drilling Results: HOLE_ID FROM TO INTERVAL TRUE Fe P SiO2 Al2O3 Comment WIDTH * (%) (%) (%) (%) BHDD003 22.65 40.65 18.00 12.28 39.23 0.07 2.34 5.07 Oxidised BIF zone BHDD003 48.15 57.15 9.00 6.14 55.67 0.17 9.39 2.21 Oxidised BIF zone BHDD003 57.15 102.55 45.40 30.96 37.37 0.04 32.40 2.83 BIF BHDD004 88.65 120.17 31.52 27.30 35.97 0.05 40.95 2.81 BIF BHDD004 150.1 168.5 18.40 15.93 37.43 0.04 40.39 1.22 BIF BHDD004 176.8 199.75 22.95 19.88 34.82 0.04 39.28 2.51 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. Once all of the drill results have been collected and analysed a second phaseprogramme of shallow vertical holes may be required to test Area 1's potentialfor direct shipping ore (`DSO') iron. Initial field mapping completed inDecember 2012 indicated that the BIF outcrops are variably oxidised to highergrade haematite mineralisation; such supergene processes are responsible forthe formation of the higher grade DSO ores. Quality Assurance / Quality Control (QA/QC) Sample intervals are reported as both metres (m) downhole and as truethickness, which have been calculated by SRK Exploration Services usingcross-sectional interpretation of the mineralised intercepts in threedimensions, and oriented core. The actual dip of the BIF varies but isgenerally 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 Chris Rourke / Guy Wheatley Beaufort Securities Limited +44 (0) 20 7382 8387 Felicity Edwards / St Brides Media and Finance +44 (0) 20 7236 1177Charlotte Heap Ltd Notes Sula Iron & Gold plc is an iron ore and gold exploration company focussed onWest Africa. The Company's main objective is to explore and advance its keyExploration Licence EL54/2011, in Northern Sierra Leone, which boasts a dualcommodity focus and is highly prospective for iron and gold. The 153 sq kmlicence area is contiguous to African Minerals' operational Tonkolili Iron Minethat has a JORC compliant resource of 12.8 billion tonnes. Exploration work at the project has confirmed the presence of Banded IronFormation (`BIF') at surface over a strike length of 3.1km and drill-ready. TheBIF appears to extend NE from the Tonkolili Mine into Sula's licence area. Anexploration target of 500 million tonnes at 30.4% iron for magnetite and 55%iron for hematite has been given by independent exploration consultants SRKExploration Services Ltd. Significant Greenstone Belt-style gold mineralisation has also been identifiedat various prospects within the licence area. Greenstone deposits are typicallylocated on or proximal to regional scale, deep seated faults and lineaments.Artisanal miners have exploited placer gold within the project area for morethan 60 years, and active workings are observed in at least five separateareas.