Power Metal Resources PLC Regulatory News (POW)

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

18 October 2017

Sula Iron & Gold plc

("Sula" or the "Company")

Strategy Update

Sula (AIM: SULA), the gold exploration company focused on Sierra Leone, wishes to update shareholders on recent decisions made by its Board.

The process of detailed analysis and structural interpretation work on the Ferensola Gold Project is ongoing. This is based on the all the data captured this year from the 9,000m of drilling and the soil sampling programme completed in July 2017. This work is being conducted under the guidance of Madini's Qualified Person, John Gould, supported by a highly-experienced South Africa-based geologist with significant experience of exploration data capture and analysis in Archean greenstone gold deposits.

Once that analysis is completed, Sula intends to examine various options for the further development of the Ferensola Gold Project on the back of the very encouraging and high-grade gold intersections over several targets across the Ferensola licence. This is expected to include soliciting expressions of interest for a joint venture or farm out of the Ferensola Gold Project. The Board is of the view that this will provide a cost-effective means to prove-up the potential inherent value that the Company believes this project contains.

In addition, Sula's Board is concurrently exploring the potential to bring one or more additional assets into the Company's portfolio. As such the Board is evaluating suitable opportunities and expressions of interest.

Roger Murphy, Sula's CEO, commented:

"The Ferensola Gold Project is a very exciting project. The challenge faced by Sula in the current climate is how best to develop this project with a view of maximising value for our stakeholders. With that in mind the Board has commenced a process to evaluate how best to continue developing Ferensola's gold asset and also to bring in additional opportunities to the Company. The Board believes that these should not only increase value, but also mitigate single project financing risk. I look forward to updating the market in due course."

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