Acquisition

Mercator Gold PLC
28 October 2005


FOR IMMEDIATE RELEASE                                           28 October 2005

                               MERCATOR GOLD PLC
                 ('Mercator Gold', 'Mercator' or 'the Company')

                        Negotiation of Major Acquisition

LONDON - Mercator Gold plc (AIM: MCR/MCRW) is pleased to announce that it has
entered into agreement to acquire from St Barbara Mines Limited ('SBM') its
entire gold exploration and mining assets in the highly prospective Meekatharra
greenstone belt of Western Australia.

The acquisition comprises the 55% balance of the Annean Joint Venture, the
3,000,000 tonnes per annum Bluebird mill and gold processing facility and
additional mining and exploration licenses with the potential to transform the
Company from explorer to gold producer. The total purchase consideration will
comprise AUD$18 million (GBP£7,560,000) in cash and new shares plus the adoption
of bonding requirements of approximately AUD$3 million (GBP£1.26 million).

The acquisition represents a 'reverse' transaction under the AIM Rules, and
accordingly the existing Mercator shares and the warrants of the Company shall
be immediately suspended from trading until either (a) the Company mails to its
shareholders the necessary meeting materials for shareholder approval of the
acquisition (expected to be a date no later than 30 December 2005) or (b) the
company elects not to proceed with the acquisition in accordance with the
agreement with St Barbara.

The acquisition is subject to a 30-day due diligence period and various
shareholder and regulatory approvals.

A more detailed news release will be issued by the Company in due course.

Enquiries:

Mercator Gold plc
Patrick Harford, Managing Director [phone]
Terry Strapp, Chairman [phone]
Michael de Villiers, Finance Director [phone]

Beaumont Cornish Limited
Roland Cornish + 44 (0) 20 7628 3396

King & Shaxson Capital Ltd
Nick Bealer + 44 (0) 20 7426 5986

Ocean Equities Ltd + 44 (0) 20 7786 4375
Will Slack

Parkgreen Communications
Justine Howarth/Ana Ribeiro + 44 (0) 20 7493 3713




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