Update on valuation of Ferensola Project by SRK ES

3 February 2015 Sula Iron & Gold plc ("Sula" or the "Company") Update on valuation of Sula's Ferensola Project by SRK ES Technical valuation increased by more than 50% to US$ 56 million in 12 months Following the publication of a maiden mineral resource estimate by SRK andpublished in the report entitled "Mineral Resource Estimate for the FerensolaIron Project, Sierra Leone, December 2014", Sula Iron & Gold plc commissionedSRK Exploration Services ("SRK ES") to update the technical valuation of theCompany's exploration asset in Sierra Leone, namely the Ferensola Licence EL54/2011 held by a 100% subsidiary company, Blue Horizon (SL) Ltd. SRK ES has combined several valuation methods to arrive at a Technical Valuefor the property, the Technical Value being a value that SRK ES considers to bea fair and reasonable value for the property, based upon the geologicalinformation available and their view on the status of the assets and theirprobability of success. SRK ES considers that the work conducted by the Companyover the past year has increased the Technical Value to US$ 56 Million, and themaximum Potential Value of the property to US$ 210 Million. This does not address the market sentiment of such investments and as such apotential investor's valuation may differ greatly from the technical valuationas the result of their view of the current or future status of the miningindustry and the Company's financial position. The Ferensola Licence covers an area of 153 km2 and is located in the centralpart of the Sula Mountains of Sierra Leone; an elongated chain some 120 km longby 16 km wide which forms an open, northerly-trending arc and contains SierraLeone`s richest and most historic gold fields. SRK ES considers that the Ferensola Licence has potential to host mineraldeposits of iron, gold and coltan. Iron Following a reconnaissance drilling programme in 2013, diamond core drillingcontinued with an oxide and fresh BIF resource drilling programme in 2014. Atotal of 8,873 m in 85 holes have been drilled to date. This has led to thecompletion of a maiden resource on the iron target. Iron mineralisation exists as both primary magnetite BIF hosted in thinlybedded silica pelitic sediments and weathered oxidised BIF occurring below theoxidised cap and above the base of oxidation. On the 16th December, 2014, SRK declared a Maiden Mineral Resource Estimate atFerensola of an Indicated Mineral Resource of 17.6 Mt grading 45.6% Fe, 15.6%SiO2, 9.7% Al2O3 and 0.07% P and an Inferred Mineral Resource of 496.9 Mtgrading 31.3% Fe, 41.88% SiO2, 5.27% Al2O3 and 0.05% P. Indicated material hasonly been reported from the oxide zones with both BIF and oxide beingclassified as Inferred. SRK has also identified an Exploration Targetcomprising potential for an additional 100 to 250 Mt, with a grade range of 29to 35% Fe that lies below the optimised pit shell. SRK considers that a minimumof four holes at an approximate length of 800 m would be required to test thebelow-pit potential. Gold The area has numerous artisanal gold workings lying within a prominentstructure approximately 9 km long and 5 km wide, referred to previously as theYanfarina-Dalakuru-Sende (YDS) gold zone. Historical trenching in this zoneidentified a series of northwest trending high grade tourmaline andgold-bearing narrow veins. Significant intersections were reported fromhistoric drill holes and mineralisation has been observed by SRK ES. SRK ES suggests that Ferensola could host a similar style of goldmineralisation to that seen at Amara Mining Plc's Baomahun deposit, asFerensola lies within a similar geological setting. Current resource and reserve estimates at the Baomahun gold deposit (southernSula-Kangari greenstone belt) are 23.3 Mt @ 1.62g/t Au (1.21 Moz Au) in theProbable Resource category out of a total Indicated Resource of 38.4 Mt @ 1.82g/t Au (2.24 Moz Au), an additional Inferred Resource of 6.6Mt @ 2.52g/t Au(0.54Moz Au) has been estimated Coltan SRK ES is of the opinion that there is potential for alluvial, eluvial andprimary pegmatite-hosted columbite-tantalite ("coltan") mineralisation withinthe Ferensola Licence area. Sula commenced a reconnaissance field workprogramme in September 2014. Samples were obtained from alluvial gravels from46 locations. The samples were concentrated and analysed at an ALS laboratory.The results for all 46 samples have been used to provide an initial indicationof prospective areas for coltan mineralisation. Due to the nature of panconcentrate sampling, the results are indicative only and do not provide valuesfor in-situ grade. The results for tantalum show nine samples with elevatedconcentrations (>0.1% tantalum) and some samples with high grades. One samplein the southeast quadrant of the licence area grades at more than 3% tantalumand provides strong evidence for the presence of coltan mineralisation in thevicinity. Other high grade samples are found near the eastern boundary of thelicence but are found along streams that flow from deeper within the licencearea, suggesting that further alluvial and primary coltan mineralisation maybefound in this part of the licence. Commenting Nick Warrell, CEO of Sula, said: "I am delighted with both the Technical and Potential values that SRK ES hasgiven to Sula's assets at our Ferensola Project. We have demonstrably unlockedand enhanced shareholder value during 2014 and are determined to replicate thatduring 2015" SRK ES Managing Director - Gareth O'Donovan CEng MSc BA (Hons) FIMMM FGS, is anindependent Qualified Person, for Sula's project in Sierra Leone. Mr. O'Donovanhas reviewed the content of this press release, and consents to the informationprovided and the form and context in which it appears. The information in this release that relates to Exploration Results has beenreviewed by Andrew Dacey, Non-Executive Technical Director of Sula Iron & Goldplc. Mr Dacey is a Fellow of the Institute of Materials Minerals and Mining, aRegistered Professional Geologist with the Australian Institute ofGeoscientists and a Competent Person as defined in the Australasian Code forReporting of Exploration Results and Mineral Resources and Ore Reserves. Indaba Andrew Dacey will be attending the Mining Indaba in Cape Town between 9 and 12February 2015 and able to meet with investors and interested parties, pleasecontact Sula below to arrange a meeting. For further information on the Company and to view the 2014 MRE announcementand others, please visit the Company's website at: www.sulaironandgold.com . Sula Iron & Gold plc +44 (0) 20 7583 8304Nick Warrell / Matt Wood Cairn Financial Advisers LLP (Nominated Adviser) +44 (0) 20 7148 7900James Caithie / Avi Robinson VSA Capital Limited (Broker) +44 (0) 20 3617 5177Bhavesh Patel / Richard Buckle Strand Hanson (Financial Adviser) +44 (0) 20 7409 3494Simon Raggett / James Harris Yellow Jersey PR (Financial PR) +44 (0) 7768 537 739Dominic Barretto / Kelsey Traynor