🕐10.10.13 - 08:27 Uhr

SULA IRON & GOLD PLC - £800,000 PLACING TO PROVE UP IRON AND GOLD MINERALIS
ATION AT FERENSOLA PROJECT, SIERRA LEONE AND CHANGE OF BROKER



Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources 10 October 2013 Sula Iron & Gold plc (Sula or the Company) �800,000 Placing to Prove Up Iron and Gold Mineralisation at Ferensola Project, Sierra Leone Sula Iron & Gold plc, a multi-commodity exploration company focussed on Sierra Leone, is pleased to announce that it has raised �800,000 by way of a placing of 40,000,000 new ordinary shares in the capital of the Company (the Placing Shares) at a price of 2 pence per Placing Share (the Placing) with a range of institutional and other investors (the Placees).

Each Placing Share includes a warrant to subscribe for a further new ordinary share at 3 pence per share (the Warrants), subject to the approval of Sula shareholders as more fully described below.

The funds raised will be used to advance the Companys wholly owned 153 sq km Ferensola Project (the Project or Ferensola), located in the northern part of the Sula-Kangari Greenstone Belt in Sierra Leone, which is prospective for iron and gold, as well as for general working capital purposes. Recent exploration work completed in September 2013 confirmed Ferensolas iron prospectivity, with a 2,000m drill programme intersecting highs of 12.28m @ 57.10% iron (Fe), 14.59m @ 55.54% Fe and 73.18m @ 43.66% Fe (see announcement dated 24 September 2013).

The Company drill tested a 2.2km strike of a 3.1km Banded Iron Formation (BIF) coincident with a strong linear magnetic anomaly proven to extend from African Minerals Limiteds (AML) operational Tonkolili iron mine (Tonkolili), which hosts a 12.8 billion tonne resource.

Consequently, Sula will utilise the funds raised through the Placing to implement a second phase exploration programme to test the direct shipping ore (`DSO) potential of the project. Sulas CEO Nick Warrell said, "With a strengthened cash position, exciting exploration results in hand and defined development programmes in place, I believe Sula is well set to advance Ferensola and unlock the Projects inherent value.

Work to date has confirmed that the Project is highly prospective for both iron and gold, and we are focused on delineating a maiden JORC compliant iron resource in 2014 and proving up the gold mineralisation. "Interestingly, in terms of our iron exposure, Tonkolili, which is contiguous to Ferensola, has recently been subject to a US$990m proposed strategic investment by Tianjin Materials and Equipment Group Corporation, which values Tonkolili at US$6 billion.

This valuation, we believe, further underpins the regions prospectivity and Sulas significant upside potential, which we hope to unlock through future exploration." Further Information The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares of the Company.

Application has been made to the London Stock Exchange for 37,110,000 of the Placing Shares to be admitted to trading on AIM (the First Admission).

It is expected that admission of these shares will become effective and that dealings in such 37,110,000 Placing Shares will commence at 8.00am on 15 October 2013. Application will be made to the London Stock Exchange on or around 17 October for the remaining 2,890,000 Placing Shares to be admitted to trading on AIM (the "Second Admission"), and it is expected that the Second Admission will become effective and that dealings in such 2,890,000 Placing Shares will commence on or around 24 October 2013.

A further announcement will be made to confirm this.
As set out above, Placees will receive one Warrant for every Placing Share subscribed for, exercisable at 3p per share for a period of three years from 15 October 2013.

Exercise of the Warrants is subject to shareholder approval for an increase in the Companys authority to issue and allot new ordinary shares, to be sought at a general meeting of the Company to be held as soon as practicable.

Such increase in the Companys authority to issue and allot new ordinary shares is being sought not only to enable any exercise of outstanding warrants and options, but also to enable the Company to raise further funds in the future.
A circular will be sent to shareholders shortly convening a general meeting and a further announcement will be made when the circular is posted. Following the First Admission, the Companys enlarged issued share capital will comprise 159,076,674 ordinary shares with voting rights.

The Company does not hold any shares in treasury.

This figure of 159,076,674 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCAs Disclosure and Transparency Rules. The Placing has been conducted by Daniel Stewart & Company Plc.
**ENDS**
For further information please visit www.sulairongold.com or contact the following:
Nick Warrell Sula Iron & Gold plc +44 (0) 7811 447830 James Caithie / Avi Robinson Cairn Financial Advisers LLP +44 (0) 20 7148 7900 Martin Lampshire / David Hart Daniel Stewart & Company Plc +44 (0) 20 7776 6550 Felicity Edwards / Charlotte Heap St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Notes Sula Iron & Gold plc is a multi commodity exploration company focussed on West Africa.

The Companys main objective is to explore and advance its Ferensola Project, in Northern Sierra Leone, which is highly prospective for iron and gold.

Sula is currently focussed on delineating a maiden JORC compliant iron resource and proving up the gold mineralisation in 2014, by conducting soil geochemistry and ground geophysics prior to a diamond drilling programme, in order to maximise the Licence areas value potential.

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 Fe. Exploration work at the project has confirmed the presence of Banded Iron Formation (BIF) at surface, which has a known strike length of 3.1km.

The BIF is proven to extend NE from the Tonkolili licence into Sulas licence area.

A 2,000m scout drilling programme conducted over a 2.2km section of BIF, confirmed the Licence areas prospectivity for consistently high grade iron mineralisation.

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

Five target areas for hard rock gold mineralisation have been identified based on the location of historic drill intercepts, the source areas for alluvial gold deposits, and the position of major structures as defined by airborne magnetic data and drainage orientation.
Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources 10 October 2013 Sula Iron & Gold plc (Sula or the Company) Appointment of Broker The Company is pleased to announce the appointment of Daniel Stewart & Company plc as sole corporate broker to the Company with immediate effect. **ENDS** For further information please visit www.sulairongold.com or contact the following:
Nick Warrell Sula Iron & Gold plc +44 (0) 7811 447830 James Caithie / Avi Robinson Cairn Financial Advisers LLP +44 (0) 20 7148 7900 Martin Lampshire / David Hart Daniel Stewart & Company Plc +44 (0) 20 7776 6550 Felicity Edwards / Charlotte Heap St Brides Media and Finance Ltd +44 (0) 20 7236 1177
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