Drilling Report

Mercator Gold PLC
02 March 2005



              Georgian House, 63 Coleman Street, London, EC2R 5BB
                    Tel [phone] Fax [phone]


                              ANNEAN JOINT VENTURE
                DRILLING RESULTS SURPRISE, JESS AND MAID MARION


LONDON - 2 March 2005 - Mercator Gold plc (AIM: MCR, MCRW) as operator of the
Annean Joint Venture announces that on-going drilling continues to intersect
significant high-grade gold mineralisation within broad zones of anomalous gold
at resource-extension targets in the Yaloginda region near Meekatharra, Western
Australia.

Highlights

•   Hole 04SUDD010 drilled from within the existing Surprise open pit
    intersected 2m @ 22.7 g/t Au from 73m down-hole, about 80m below surface. 
    Hole 04SUDD010 and hole 05SUDD016, both drilled from the same collar 
    position but in different directions within the Surprise pit, returned 141m 
    @ 0.84 g/t Au and 177m @ 0.66 g/t Au, respectively.

•   Initial drilling at Jess, the third of three resource-extension
    targets being drilled in the Yaloginda region, has provided initial
    encouragement, demonstrating zones of anomalous gold, including 8m @ 1.9 g/t 
    Au from 106m downhole, 8m @ 1.2 g/t Au from 118m and 8m @ 0.9 g/t from 133m.
    Drilling is continuing to test potential for high-grade shoots.

•   At Maid Marion, a brownfields exploration target 15km north of
    Meekatharra, the Company has drilled 93 air-core regional targeting holes, 
    of which 13 holes returned gold grades over 0.5 g/t. These results, when 
    combined with drilling data by previous operators, demonstrate a major 
    corridor of gold mineralisation stretching for more than 8km between Maid 
    Marion and Five Mile Well. One diamond core hole drilled to test the 
    continuity of mineralisation,  to test an IP anomaly and to obtain 
    structural geology data, returned six significant intersections including 2m 
    @ 15 g/t Au from 93m downhole.

•   The Company has completed a £1.25 million share placement to
    institutional clients of Ocean Equities Ltd and Phillip Securities (UK) Ltd,
    which boosts treasury and allows the Company to maintain an aggressive 
    drilling programme at Bluebird, Surprise, Jess and Maid Marion within the 
    Annean Joint Venture Area.

Surprise drilling

Surprise is the second of three resource-extension targets in the Yaloginda 
mine area, immediately south of Meekatharra, Western Australia, to be drilled 
by Mercator. The Company considers that each target has the potential to 
contain in excess of 500,000 ounces of high-grade gold. The targets are located
within 4km of the St Barbara Mines Limited's Bluebird mill that is currently on 
care and maintenance.

                                     - 2 -

Complete drill results for Holes 04SURCDD010, 04SURCDD13 and 05SURCDD016 are
presented in Table 1 below. (These results include the completion of Hole
04SURCDD13 that stopped at Christmas, with progress results announced in a
January press release.)

Holes 04SURCDD010 and 05SURCDD016 were collared on the haul road within the
existing small Surprise open cut and were drilled towards 247 degrees and 222
degrees respectively at -60 degrees oriented to go down at least 100m of host
porphyry before passing out into country high-Mg basalt on the west side of the
porphyry. Whilst drilled partly within the host rock, these holes are drilled
across the gold-bearing sub-horizontal quartz veins.

Hole 04SURCDD013 includes 6m @ 2.38 g/t Au, hole 04SUDD010 2m @ 22.73 g/t Au,
and hole 05SUDD016 8m @ 2.7 g/t Au. The average grade of the complete Hole
04SUDD010 is 141m @ 0.84 g/t Au and for 05SUDD016 177m @ 0.66 g/t Au. These
results demonstrate that Surprise has widespread anomalous gold, and within the
anomalous zones are substantial high-grade sections, such as those intersected
in 04SURCDD012 with 15m @ 45.1 g/t Au from 127m down-hole (announced January).

The Company is currently involved in a comprehensive analysis of the Surprise
drill results in the context of past drilling. Future drilling will target
repetitions of the two high-grade zones already recognised, and the depth
extensions of the porphyry plunging 45 degrees to south.

Jess drilling

Jess is the third of the Company's resource targets in the Yaloginda mine area.
Four reverse circulation holes of a ten hole programme have been completed.
Holes 04JSRC002 and 04JSRC010 intersected mineralisation as indicated in the
Table 2 below. Hole 04JSRC010 did not reach target depth as the rig suffered a
mechanical problem, but returned several notable intersections, including 8m @
1.94 g/t Au, and substantial widths of low grade mineralisation.

The Jess results provide initial encouragement, demonstrating wide zones of
anomalous gold. The company intends to complete its planned programme to test
potential for high-grade shoots.

Maid Marion drilling

At Maid Marion, the Company drilled 93 air-core holes as a regional targeting
tool, with 13 holes returning gold grades over 0.5 g/t. These results, when
combined with drilling data by previous operators, demonstrate a major corridor
of gold mineralisation stretching for 8km between Maid Marion and Five Mile
Well.

One diamond core hole has been drilled at Maid Marion to test the continuity of
mineralisation, test an IP anomaly and to obtain structural geology data. Hole
05MMDD001 had six significant intercepts including 2m @ 15 g/t Au from 93m down
the -60 degrees angled hole. This and other intersections in the hole are in
banded iron formation and mafic schist.

The Maid Marion results, detailed in Table 3 below, provide significant
encouragement, demonstrating substantial anomalous gold and the potential for
high-grade shoots.

                                     - 3 -

Future Exploration

Mercator has entered a contract with Mt Magnet Drilling Pty Limited for them to
supply not less than 12,000 metres of reverse circulation and diamond core
drilling during 2005. The next programme of drilling is scheduled to commence 
in April, and will include:

   •Drilling for deep resource extensions at Bluebird;
   •On-going exploration of and deep target testing at Surprise;
   •Detailed exploration at Jess;
   •Systematic RC and air-core drilling of anomalies at Maid Marion, and deep
    drilling beneath known mineralization;
   •Testing of regional exploration targets including Cassia and Tuckanarra.


Institutional Share Placement

The Company recently completed a £1.25 million share placement to institutional
clients of Ocean Equities Ltd and Phillip Securities (UK) Ltd, which boosts
treasury and allows the Company to maintain an aggressive drilling programme
under the Annean Joint Venture Area.

Ocean Equities Ltd has been appointed joint broker to the Company and has 
introduced a number of new institutional shareholders to the Company, including
Artemis Investment Management Limited, which last week notified the Company of 
an interest in 3,750,000 Ordinary Shares, representing 5.24 per cent of the 
Company's issued Ordinary Share capital.

Corporate Developments

Dr Susan Vearncombe has been appointed as an executive director of Mercator 
Gold plc.



                                    - ends -

Tables referred to above follow.
_________________________________________________

Information releases
Mercator operates a continuous disclosure policy with respect to exploration
results. Company news releases are based on technical information approved by
the Company's Exploration Director, Julian Vearncombe BSc (Hons), PhD, FGS,
RPGeo, FAIG.

Note to editors
Under the terms of the Annean Joint Venture, Mercator has the right to earn 70%
interest in the Meekatharra properties from St Barbara Mines Ltd by spending a
total of AUD$8 million (approx GBP3.1 million) on exploration. Mercator has
spent the first AUD$1 million and has elected to proceed towards the first step
of earning 45% with a minimum expenditure requirement of AUD$2 million before
3rd March 2006.

                                     - 4 -
Table 1: Surprise results

                              Surprise Intercepts

Hole_ID       From_m   To_m   Interval_m   Au_g/t   Au_g*m/t Easting   Northing  RL
                                                  
04SUDD010         27     29            2    4.59    9.18    642789    7045349   414
04SUDD010         37     41            4    0.84    3.36    642784    7045346   404
04SUDD010         54     55            1    0.71    0.71    642777    7045343   391
04SUDD010         64     66            2    6.57   13.14    642772    7045341   382
04SUDD010         73     75            2   22.73   45.46    642768    7045339   374
04SUDD010         85     86            1     2.6     2.6    642763    7045336   364
04SUDD010         89     94            5    1.17    5.85    642760    7045335   359
04SUDD010         98    100            2    3.94    7.88    642756    7045333   352
04SUDD010        120    124            4    0.91    3.64    642746    7045328   332
04SURCDD013      121    127            6    1.61    9.66    642724    7045277   380
04SURCDD013      132    137            5   12.11   60.55    771278    8454329   447
04SURCDD013      143    149            6    2.38   14.28    642740    7045272   365
04SURCDD013      157    163            6    0.86    5.16    642749    7045269   356
05SUDD016         10     15            5    1.95    9.75    642797    7045350   427
05SUDD016         30     32            2    1.42    2.84    642791    7045342   411
05SUDD016         37     38            1    7.31    7.31    642788    7045340   406
05SUDD016         49     50            1    1.28    1.28    642784    7045335   396
05SUDD016         56     57            1     0.5     0.5    642782    7045332   390
05SUDD016         61     62            1    0.63    0.63    642780    7045331   386
05SUDD016         66     67            1    0.54    0.54    642778    7045329   381
05SUDD016         70     75            5    1.69    8.45    642776    7045326   376
05SUDD016         79     85            6    1.78   10.68    642772    7045323   368
05SUDD016         88     89            1    3.04    3.04    642770    7045320   363
05SUDD016         92     99            7    1.02    7.14    642767    7045317   357
05SUDD016        100    104            4    1.04    4.16    642765    7045315   351
05SUDD016        106    107            1    0.58    0.58    642763    7045313   347
05SUDD016        113    114            1    2.72    2.72    642761    7045310   342
05SUDD016        119    120            1    0.53    0.53    642758    7045308   336
05SUDD016        123    124            1    1.55    1.55    642757    7045307   333
05SUDD016        133    138            5    1.09    5.45    642752    7045302   323
05SUDD016        147    149            2    1.86    3.72    642748    7045297   312
05SUDD016        155    156            1    0.65    0.65    642745    7045294   306
05SUDD016        164    172            8     2.7    21.6    642740    7045289   296
Note: for hole 04SURCDD013 results to depth 137 metres were announced in January
in an earlier press release.

Table 2: Jess results

                                Jess Intercepts

Hole_ID     From   To (m) Interval   Au_g/t  Au_g*m/t  Easting   Northing  RL
                                           
            (m)           (m)
04JSRC002     22     24          2   1.31     2.62    642486    7044607   453
04JSRC010     81     85          4    2.6     10.4    642505    7044478   404
04JSRC010     99    102          3   2.01     6.03    642500    7044487   390
04JSRC010    106    114          8   1.94    15.52    642498    7044492   383
04JSRC010    118    126          8   1.23     9.84    642494    7044499   373
04JSRC010    133    141          8   0.96     7.68    642490    7044508   362
                                     - 5 -

Table 3: Maid Marion results

                            Maid Marion Intercepts

Hole_ID     From_m   To_m   Interval_m   Au_g/t   Au_g*m/t Easting   Northing  RL
                                                
04MMAC016       34     35            1    1.01    1.01    657097    7070595   470
04MMAC018       19     20            1    0.97    0.97    657200    7070545   483
04MMAC019       35     36            1     8.3     8.3    657233    7070523   469
04MMAC021       32     33            1    0.66    0.66    657311    7070478   472
04MMAC046       60     64            4     0.9     3.6    657780    7071131   446
04MMAC060       11     15            4    1.98    7.92    657963    7071714   489
04MMAC060       17     18            1    1.25    1.25    657961    7071715   485
04MMAC061       57     58            1     0.6     0.6    658286    7071637   450
04MMAC061       67     68            1    5.73    5.73    658282    7071640   442
04MMAC064       41     43            2    0.75     1.5    658424    7071562   464
04MMAC072       20     22            2    0.78    1.56    656790    7070289   482
04MMAC075       77     79            2    0.54    1.08    656903    7070253   432
04MMAC077       23     27            4     0.5       2    657002    7070196   478
04MMAC084       49     51            2    3.56    7.12    658482    7071812   457
04MMAC091       44     45            1    6.41    6.41    656754    7069875   461
05MMDD001       86     90            4    1.04    4.16    658681    7071774   424
05MMDD001       93     95            2   15.00   30.00    658679    7071776   419
05MMDD001      103    104            1    4.63    4.63    658675    7071778   410
05MMDD001      139    142            3    3.62   10.86    658659    7071788   379
05MMDD001      142    143            1    3.08    3.08    658658    7071788   377
05MMDD001      148    149            1    1.49    1.49    658655    7071790   372

Notes on tables
The drill assay tables is in this press release are based on compositing trigger
value = 0.5 g/t Au, minimum composite length 0.2m, and maximum width of internal
waste 2m. Intercept coordinates represent the x-y-z centroid position of the
composited drill-hole intercept. Easting refers to the Australian Map Grid
AMG'84 block 50 easting coordinate, and northing the AMG'84 block 50 northing
coordinate. Assay method is Genalysis 50g fire assay (FA50/AAS). The surface RL
at Yaloginda near Meekatharra is about 470m with modest variations within the
area.



For more information

Mercator Gold plc                            www.mercatorgold.com

Patrick Harford, Managing Director           Tel: [phone]
Terry Strapp, Chairman                       Tel : [phone]

Beaumont Cornish Limited
Rod Venables / Roland Cornish                Tel: [phone]

Ocean Equities Ltd
Guy Wilkes / Will Slack                      Tel: + 44 (0) 20 7786 4370

Phillip Securities UK Limited
Nick Bealer                                  Tel: [phone]

Parkgreen Communications
Justine Howarth / Ana Ribeiro                Tel: [phone]




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