Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources 11 February 2013 Sula Iron & Gold plc (Sula or the Company) Gold Update at Iron and Gold Licence in Sierra Leone
Sula Iron & Gold plc, an iron ore and gold exploration company focussed on Sierra Leone, is pleased to announce that five target areas for hard rock gold mineralisation have now been confirmed for follow-up exploration at Sulas wholly owned 153 sq km Blue Horizon iron ore and gold exploration licence (the Licence) in Sierra Leone.
Highlights
* Five target areas for hard rock gold mineralisation have been identified that appear to host source areas of placer gold o The Dalakuru and Lagunda prospects are high priority targets where further exploration including detailed ground magnetic surveys is planned * Defined exploration area of approximately 8 sq km identified for placer gold source at Lagunda prospect where extensive artisanal mining occurs * Areas prospective for gold in the licence are located in the highly prospective Sula-Kangari greenstone belt rocks (hosts Amara Mining Plcs 2.91Moz Au Baomahun deposit) * Structures within the Licence display a strong northeast-southwest trend - typical of the gold-mineralised greenstone trend throughout West Africa * Historic drilling intercepted hard rock mineralisation that is open in all directions at the Dalakuru prospect.

Historic diamond drilling intercepted: o 2.00m @ 8.76g/t gold (83.14 to 85.10m, SDD004) o 8.72m @ 10.46g/t gold (89.40 to 98.10m, SDD004) o 1.55m @ 11.68g/t gold (171.00 to 173.00m, SDD016) o 9.03m @ 6.63g/t gold (161.37 to 170.00m, SDD033) * Additional gold targets identified and remain to be explored
Sulas Non-Executive Technical Director Chris Wilson, said, "We are delighted that reconnaissance work has identified five highly prospective exploration targets that appear to host the source areas of placer gold within the Licence area.

The potential presence of these gold sources confirms our belief that the Licence is highly prospective for gold.

This marks another step in our efforts to establish a leading dual-commodity iron ore and gold exploration company.

With defined exploration programmes in place to prove up the gold potential, and work on-going on our iron ore prospects, we are confident that our Licence offers investors significant upside potential."
Further Information Exploration Alliance S.A.

conducted a reconnaissance review of the gold potential of Sulas wholly owned Blue Horizon exploration licence in Sierra Leone.

This included the compilation of existing data into a Geographic Information System (GIS) database allowing geospatial analysis of historic drill intercepts, structural interpretation of publicly available regional magnetic data, and interpretation of high resolution satellite imagery.

This work has provided Sula with a better understanding of the local geology and the distribution and potential controls on gold mineralisation.
In January 2013, Sula acquired licence-wide GeoEye-1 satellite data with a resolution of 50cm per pixel.

The imagery generated provides detailed information on the extent of artisanal placer gold workings which have occurred within the Sula licence area for over 60 years, and indicates the source of some of the placer gold within the Licence. Five target areas for hard rock gold mineralisation have been identified based on the location of historic drill intercepts, potential source areas for alluvial gold deposits, and position of major structures as defined by airborne magnetic data and drainage orientation.

Of these, the Dalakuru and Lagunda prospects are high priority targets. Areas prospective for gold in the licence are located in the highly prospective Sula-Kangari greenstone belt rocks, which trend northeast through the licence.

The Sula-Kangari belt hosts Amara Mining Plcs (previously Cluff Gold) 2.91Moz Baomahun deposit in Sierra Leone and greenstone belts in general host all major gold deposits in West Africa, which are commonly recognised at surface by extensive artisanal workings.
Structure is known to exert a fundamental control on greenstone-type mineralisation and all major deposits worldwide are associated with regional scale faults.

Major structures within the Licence display a strong northeast-southwest trend, which is typical of the gold-mineralised greenstone trend throughout West Africa.

The bounding structures to the Sula-Kangari greenstone belt pass through the Sula Licence, and smaller scale, sub-parallel northeast-southwest trending structures and contact zones are also common.

Northeast trending lineaments are locally cross-cut and offset by small northwest-southeast and east-west trending faults. Sula consider the association of placer gold workings and major lineaments within greenstone belt rocks at the Licence to be highly significant.

Furthermore, historic drilling in the Licence has discovered hard rock mineralisation which is open in all directions at the Dalakuru prospect, and also identified additional gold targets that remain to be explored. Dalakuru is the most advanced prospect within the Licence, and historic diamond drilling intercepted 2.00m @ 8.76g/t gold (83.14 to 85.10m, SDD004), 8.72m @ 10.46g/t gold (89.40 to 98.10m, SDD004), 1.55m @ 11.68g/t gold (171.00 to 173.00m, SDD016) and 9.03m @ 6.63g/t gold (161.37 to 170.00m, SDD033).

Mineralisation is hosted in massive pyrite and pyrite cemented breccia with quartz fragments and is open in all directions. Dalakuru is located on a major northeast-southwest trending structure that juxtaposes a strong magnetic high against a strong magnetic low.

This difference in magnetic response indicates that different lithologies occur either side of the fault and the resultant competency contrasts are considered important in focusing mineralising fluids.

The Dalakuru structure is at least 5km long but extensive development of laterite masks bedrock geology along its length.

Sula is planning a detailed ground magnetic survey to better constrain the location of the fault zone, which will then be followed by a soil and channel sampling programme to assist with drill targeting along strike.

Step-out and step-back drilling of mineralisation intercepted in historic drill holes is a priority. Lagunda is defined by extensive artisanal alluvial gold workings which outline a northeast-southwest trending target that is approximately 6km long and 2km wide.

The northwest boundary of the prospect is defined by a regional northeast-southwest trending structure that juxtaposes a strongly magnetic unit against a weakly magnetic unit.

The Lagunda target area displays a mottled mid-range magnetic response which defines multiple northeast-southwest trending structures and contact zones.

The potential presence of multiple structures and contact zones, juxtaposing different lithologies, coincident with the source area of the Lagunda alluvials is considered highly significant.

Regional magnetic data suggests that Lagunda is a dilational zone, where multiple faults and contact zones provide excellent structural preparation, and competency contrasts between lithological units could serve to focus fluids.
Sula considers Lagunda a high priority target.

A detailed ground magnetic survey is planned, in conjunction with reconnaissance soil sampling, in order to better define the structural architecture and location of most prospective targets.
The other prospect areas, known as Simbako, Simbako East and Northeast are located on regional, northeast trending lineaments which define the contact between magnetic highs and magnetic lows.

Localised alluvial workings are associated with each prospect indicating the potential for hard rock gold mineralisation.

These prospects are not covered by regional magnetic data and the structural architecture of the projects is unknown.

Further work comprising acquisition of ground magnetic data and reconnaissance geochemical sampling will be conducted following completion of the Dalakuru and Lagunda work programmes. The information in this announcement has been reviewed by Dr Chris Wilson, Technical Director of Sula, a Chartered Professional Geologist with 24 years experience, a Qualified Person (NI43-101 and JORC), Fellow of the Australian Institute of Mining and Metallurgy and a Fellow of the Society of Economic Geologists. **ENDS** For further information please visit www.sulairongold.com or contact the following:
Gavin Burnell Sula Iron & Gold plc + 44 (0) 20 7796 8826 James Caithie / Avi Robinson Cairn Financial Advisers LLP +44 (0) 20 7148 7900 John-Henry Wicks / Alice Lane Northland Capital Partners Limited +44 (0) 20 7796 8800 Chris Rourke / Guy Wheatley Beaufort International Associates Limited +44 (0) 20 7382 8387 Felicity Edwards/ Charlotte Heap St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Notes Sula Iron & Gold plc is an iron ore and gold exploration company focussed on West Africa.

The Companys main objective is to explore and advance its key Exploration Licence EL54/2011, in Northern Sierra Leone, which boasts a dual commodity focus and is highly prospective for iron and gold.

The 153 sq km licence area is contiguous to African Minerals operational Tonkolili iron mine, which has a JORC compliant resource of 12.8 billion tonnes. Exploration work at the Project has confirmed the presence of banded iron formation (BIF) at surface over a strike length of 3.1km and drill-ready.

The BIF extends NE from the Tonkolili mine into Sulas licence area.

An exploration target of 500 million tonnes at 30.4% iron for magnetite and 55% iron for hematite has been given by independent mining consultants SRK Exploration Services Ltd. Significant greenstone-style gold mineralisation has also been identified at various prospects within the licence area.

Greenstone-style deposits are typically located on or proximal to regional scale, deep seated faults and lineaments.

Artisanal miners have exploited placer gold within the Project area for more than 60 years, and active workings are observed in at least five separate areas. The Company has a strong board and management team with in depth knowledge of Sierra Leone and a proven track record in developing African resource projects.
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