Silver Swan Update

Silver Swan Update

Mercator Gold Plc

MERCATOR GOLD plc
(“Mercator Gold”, “Mercator” or “the Company”)

AIM: MCR
US OTC: MTGDY

Silver Swan Update

London 9 April 2010

Mercator Gold plc is pleased to draw attention to the announcement made by Silver Swan Group Limited (ASX: SWN) (“Silver Swan”) on 6 April 2010 regarding the completion of a maiden resource statement for Silver Swan’s Austin copper-zinc-gold-silver discovery in Western Australia. The Austin discovery is a volcanogenic massive sulphide (VMS) deposit located within the package of exploration tenements sold to Silver Swan by Mercator in 2008.

Mercator holds 4 million performance shares in Silver Swan, which convert to ordinary shares subject to certain conditions, the most significant of which is the identification by Silver Swan of a minimum 350,000 oz gold equivalent in the JORC Indicated Mineral Resource category (or higher) on the tenements sold to it by Mercator.

Austin Discovery – Maiden Resource Statement

Category	Â	Tonnes	Â	Cu (%)	Â	Zn (%)	Â	Au (g/t)	Â	Ag (g/t)
											Â
Measured		463,428		1.22		1.41		0.30		4.38
											Â
Indicated		703,286		0.97		1.47		0.22		3.28
											Â
Inferred		317,708		0.85		1.17		0.18		2.74
											Â
Measured & Indicated		1,166,714		1.07		1.45		0.25		3.72
											Â
Total Resources		1,484,421		1.02		1.39		0.24		3.51

Gold Equivalent (oz) for Measured & Indicated Mineral Resource Categories
Cu: 87,442oz        Zn: 35,772oz        Ag: 2,213

Total gold equivalent: 134,805oz

(Based on copper at US$7,950/t, zinc at US$2,400/t, gold at US$1,135/oz, silver at US$18/oz)

The resource statement was prepared in accordance with the JORC Code by Golder Associates and includes allowances for mining loss and dilution. The bulk of the resource is deemed to be potentially suitable for open pit development. The resource was calculated using a cut-off grade of 0.4% copper and is based on data from 28 diamond drill holes and 6 reverse circulation drill holes.

Silver Swan’s full announcement can be viewed at:

http://www.silverswangroup.com.au/pdf/Announcements/2010/APR10/100406-Austin_Maiden_Resource_Statement.pdf

Patrick Harford, Managing Director of Mercator Gold plc, comments:

“Silver Swan’s maiden resource statement for the Austin discovery is a major step towards the 4 million Silver Swan performance shares held by Mercator being converted to freely tradeable ordinary shares.

We are pleased to note that Silver Swan remains well funded, having raised in excess of A$17 million in equity financing to date, and we look forward to the results of further exploration at the Austin discovery and at Silver Swan’s other areas of focus.”

For further information please contact:

Mercator Gold plc	Â
Michael Silver, Chairman		Tel: [phone]
Patrick Harford, Managing Director		Tel: [phone]
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Email: [e-mail]
Website: www.mercatorgold.com
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Daniel Stewart & Company plc
Oliver Rigby		Tel: + 44 (0) 20 7776 6550
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Old Park Lane Capital plc
Forbes Cutler		Tel: [phone]
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Bankside Consultants Ltd
Simon Rothschild/Oliver Winters		Tel: [phone]
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Barry Kaplan Associates
Larry Kaplan		Tel: [phone]