Sula Iron and Gold PLC : SULA IRON & GOLD PLC - Issue of Equity

  Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources

10 January 2014

                Sula Iron & Gold plc (`Sula' or `the Company')

                                Issue of Equity

Sula Iron & Gold plc, a multi-commodity exploration company focussed on Sierra
Leone announces that it has issued 1,650,000 new ordinary shares (`New Shares')
of 1 pence each in the capital of the Company (`Ordinary Shares') pursuant to
the exercise of 1,650,000 warrants granted in October 2013. The Company has
received valid notices of exercise in respect of the warrants and has received
funds of £49,500 representing the exercise price of 3 pence per share.

The New Shares rank pari passu in all respects with the existing Ordinary
Shares. Application has been made to the London Stock Exchange for the New
Shares to be admitted to trading on AIM and it is expected that admission of
the New Shares will become effective and that dealings in the New Shares will
commence at 8.00am on 15 January 2014 (`Admission').

Total Voting Rights

Following Admission, the Company's enlarged issued share capital will comprise
170,641,686 Ordinary Shares with voting rights. The Company does not hold any
shares in treasury. This figure of 170,641,686 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 FCA's
Disclosure and Transparency Rules.

                                   **ENDS**

For further information please visit www.sulairongold.com or contact the
following:

Nick Warrell                Sula Iron & Gold plc           [phone]

James Caithie / Avi         Cairn Financial Advisers LLP   [phone]
Robinson

Martin Lampshire / David    Daniel Stewart & Company Plc   [phone]
Hart

Felicity Edwards /          St Brides Media and Finance    [phone]
Charlotte Heap              Ltd

Notes

Sula Iron & Gold plc is a multi commodity exploration company focussed on West
Africa. The Company's 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 area's 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 Sula's licence area. A
2,000m scout drilling programme conducted over a 2.2km section of BIF,
confirmed the Licence area's 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.