Power Metal Resources PLC Regulatory News (POW)

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

22 May 2017

Sula Iron & Gold plc

("Sula" or the "Company")

Issue of Equity

Sula (AIM: SULA), the gold exploration company focused on Sierra Leone, is pleased to announce that it has completed payment to Equity Drilling Limited ("Equity"), the Company's drill contractor for its recently completed 3,783m of drilling on its flagship Ferensola gold project.

As part of their contract Equity elected to receive a large part of its payment in Sula stock, after the completion of drilling, meaning Sula will issue 52,425,474 new ordinary shares ("Ordinary Shares") to Equity based upon a price of 0.43p per share, being the closing mid-market price of the Company's shares on 18 May 2017. This is price is almost a 100% premium to the share price when the drill contract was entered into in December 2016.

Accordingly, application will be made for the new Ordinary Shares to be admitted to trading on AIM ("Admission") and it is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence at 8.00 a.m. on 26 May 2017. The new Ordinary Shares will represent approximately 2.3 per cent. of the Company's share capital as enlarged by the new Ordinary Shares (the "Enlarged Share Capital"). The new Ordinary Shares will rank pari passu in all respects with the Company's existing Ordinary Shares and will be issued fully paid.

Following Admission, the Company's Enlarged Share Capital will comprise 2,267,120,672 Ordinary Shares. This figure may be used by shareholders as the denominator for the calculations by which they may determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Roger Murphy, CEO of Sula commented:

"I am very happy to settle the balance of our contract with Equity Drilling by paying them in stock. At the time we entered into the contract Sula's shares were around 0.22p. So this innovative payment mechanism means that we have issued around half as many shares to pay for the drilling as we would have, had we paid all in cash; this mechanism has thereby helped us to drill far more than we would have been able to if we'd had to pay all in cash."

**ENDS**

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Notes:

Sula Iron & Gold plc is a gold focused exploration company focused on West Africa. The Company's main objective is to explore and advance its 153km2 Ferensola Project in Northern Sierra Leone. In June 2015, the Company defined a JORC Exploration Target on its Ferensola Gold Project. The Exploration Target centres on Sanama Hill, with a tonnage range of between 5 and 7 million tonnes ("Mt"), grading at between 4 and 8 g/t Au, which equates to between 0.8 and 1.5 million ounces ("Moz") Au. The Exploration Target was restricted to a 2km strike length segment of the regional fold belt that is believed to extend for over 10km.