Good morning, Please find attached an initiation of coverage note for Sula Iron & Gold from the Companys house broker Northland Capital. Northland Capital has issued a BUY recommendation for the Company with a price target of 6.7p (current share price 3.5p). Kind regards, Charlotte
Sula Iron and Gold is exploring its 100% owned 153km2 licence located in the Sula-Kangari Greenstone Belt, Sierra Leone.

The licence contains the extension of iron ore mineralisation associated with the world class Tonkolili Iron Ore Mine (12.8bnt) owned by African Minerals (AMI.L).

Recent ground based geophysics undertaken by Sula has confirmed the presence of a 2.8km long magnetic anomaly with a width between 200-350m, associated with surface outcrops of Banded Iron Formation (BIF).

SRK Consulting suggests that an exploration target of 0.5bnt at 30.4% iron in magnetite and 55% iron in haematite is reasonable.

The licence is also considered prospective for gold with nearby operations including Amara Minings (AMA.L) 2.91moz Au Baomahun deposit.

Historic drilling for gold at Sulas licence returned assays including 9.03m at 6.63g/t Au (SDD 033) and 8.72m at 10.46g/t Au (SDD 004).
* Iron ore: Sula is currently undertaking a 2,000m drilling programme with the first set of results expected shortly.

Following this, Sula expects to define a JORC compliant iron ore resource by the end of 2013. * Gold: The gold potential of the licence is highlighted by the presence of extensive artisanal mining operations and historic drilling.

Structural surveys undertaken by Sula defined five high priority targets. * Site visit: We recently visited Sulas project and were impressed by its scale and managements relationships with the local community. * Valuation: We initiate coverage on Sula Iron and Gold with a price target of 6.7p based on a discounted comparable analysis with African Minerals Tonkolili deposit.

Our base case valuation is 1.9p based on an appraised valuation method.
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