Drilling Report

Mercator Gold PLC
24 November 2006

London - Friday 24 November 2006





                  Drilling at Prohibition confirms consistent

                        width and depth to mineralisation

               with significant potential to upgrade the resource





                                   HIGHLIGHTS



•       Resource drill-outs at Prohibition return intersections that include:




                   Prohibition



                   •         12m at 13.8g/t

                   •         19m at  5.0g/t

                   •         30m at  3.1g/t

                   •         21m at  3.1g/t

                   •         31m at  2.1g/t







  •    Reserve estimation for Bluebird and Surprise enter final stage.


  •    Plant upgrade on time and budget for completion mid-January 2007





The Managing Director, Mr Patrick Harford said:



 'The drilling results continue to confirm the potential of the Prohibition ore
body.  Consistent widths give us lots of options as to mining method.  The plant
refurbishment and mining studies are progressing well with recruitment and
mining contracts now under consideration'





Prohibition-Vivian-Consols



At Prohibition, Vivian and Consols (PVC), the recent focus has been Prohibition
where a ferruginous chert hosts gold-pyrite-arsenopyrite mineralisation. All
holes listed here are drilled from E to W across the E-dipping ferruginous
chert. PVC is on track for a significant increase and improved quality resource.
Drill intersections (>1.0 g/t Au) received include but are not limited to:


      Hole ID       Depth from surface   Internal dilution                      Interval
     06PRRD028             234m                 7m                            19m @ 5.0g/t
     06PRRD029             407m                  0                            8m @ 2.5g/t
     06PRRD030             322m                 2m                            16m @ 1.9g/t
     06PRRD034              94m                 3m                           12m @ 13.8g/t
     06PRRD036             282m                 19m                           27m @ 1.9g/t

                                                                         including 6m @ 4.9g/t
     06PRRD037             254m                 6m                            21m @ 3.1g/t
     06PRRD040             343m                 14m                           31m @ 2.1g/t

                                                                         including 9m @ 4.1g/t
     06PRRD041             371m                 12m                           30m @ 3.1g/t





Exploration for shallow oxide mineralisation



The Company's programme of exploration for shallow oxide and other near-surface
ores is returning positive results. Preliminary data are available for Nannine,
Maid Marion and Whangamata (north of Bluebird). Additional results are pending.



Nannine is one of four mining centres within the Company's tenement holding at
Meekatharra. The Nannine mining centre has produced more than 200,000 ounces of
gold from surface alluvial, oxide open cut and lode underground mines.
Significant RAB drill intersections (>1.0 g/t Au) received include but are not
limited to:




      Hole ID       Depth from surface   Internal dilution                      Interval
     06NNRB115              24m                  0                            4m @ 5.8g/t
     06NNRB142              12m                  0                            4m @ 3.3g/t





At Meekatharra North, the Company is focused on RC drilling the zone of oxide
mineralisation at Maid Marion. The drilling confirms a NNE-trending zone of
deeply weathered mineralisation 270m in length. Significant drill intersections
(>1.0 g/t Au) received include but are not limited to:




      Hole ID       Depth from surface   Internal dilution                      Interval
     06MMRC040              75m                 6m                            10m @ 1.6g/t
     06MMRC045             173m                 5m                            8m @ 1.1g/t
     06MMRC047              10m                 6m                            18m @'1.7g/t



An on-going aircore (AC) programme at Whangamata continues to identify a
NNW-trending zone of mineralised quartz veining at shallow depth. Significant
drill intersects (>1.0 g/t Au) received include but are not limited to:




      Hole ID       Depth from surface   Internal dilution                      Interval
     06WHAC047              18m                  0                            2m @ 8.2g/t
     06WHAC055              46m                 7m                            12m @ 1.2g/t
     06WHAC055              69m                 9m                            15m @ 1.3g/t





Consent for release



Julian Vearncombe BSc (Hons), PhD, FGS, RPGeo, FAIG is a director of the Company
and consents to the inclusion of the exploration information in the form and
context in which it appears here. Julian Vearncombe is a Competent Person for
the reporting of these results as defined by the JORC Code 2004 Edition.



For further information please contact:



Mercator Gold plc
Terry Strapp, Chairman                              Tel: [phone]
                                                    Mob:    [phone]

Patrick Harford, Managing Director                  Tel: [phone]
                                                    Mob:    [phone]

Email:    [e-mail]
Website:  www.mercatorgold.com





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


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