Exec Share Option Scheme

Mercator Gold PLC
19 November 2004




FOR IMMEDIATE RELEASE                        19 NOVEMBER 2004


              ADOPTION OF UNAPPROVED EXECUTIVE SHARE OPTION SCHEME

In its Admission Document issued on 1 October 2004, the Company indicated that,
following the admission of its Ordinary Shares of 1p each to trading on AIM, it
intended to establish a share option scheme for the benefit of Executives and
senior employees of the Mercator Group. The Company announces that the Board has
today approved the adoption of the Mercator Gold plc Unapproved Share Option
Plan ('the Scheme').

The Principal features of the Scheme are as follows:

Eligibility
Options may only be granted to Executives of the Mercator Group which may
include Directors and any person whose services are provided to the Mercator
Group through a personal services company.

Grant of Options
No Options under the Scheme may be granted after 18 November 2014.

An Optionholder shall be issued with an Option Certificate which contains an
undertaking by the Optionholder to be bound by the rules of the Scheme. In
addition, the Optionholder must confirm his acceptance of the Option grant by
the execution and delivery to the Company of a form of acceptance and election.

Exercise Price
The exercise price of Ordinary Shares comprised in an Option shall be the
greater of the middle market quotation for an Ordinary Share (as derived from
the Official List for the ten dealing days immediately preceding the date of
grant) and the nominal value of an Ordinary Share.
Exercise of Options
Save for certain circumstances, an Option may be exercised at any time after the
date of grant and not later than the end of the day preceding the tenth
anniversary of the date of grant.





The Company also announces that, pursuant to the Scheme, options have been
granted today in respect of an aggregate of 4,500,000 Ordinary Shares to the
Directors of the Group as follows:

Director   Number of Ordinary Shares   Exercise Price per      Exercise Period
           under option                Ordinary Share

Terry           750,000                      10p               19.11.2004 to
Strapp                                                         18.11.2014

Patrick         750,000                      10p               19.11.2004 to
Harford                                                        18.11.2014

Michael de      750,000                      10p               19.11.2004 to
Villiers                                                       18.11.2014

Dr Julian       750,000                      10p               19.11.2004 to
Vearncombe                                                     18.11.2014

Michael         500,000                      10p               19.11.2004 to
Elias                                                          18.11.2014

Nicholas        500,000                      10p               19.11.2004 to
Allen                                                          18.11.2014

Paul            500,000                      10p               19.11.2004 to
Loudon                                                         18.11.2014

For further information, please contact:

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

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

Phillip Securities UK Limited
Nick Bealer                                   Tel: [phone]

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


Note to editors

Mercator Gold plc ('AIM-MCR') which joined AIM on 8 October 2004 has a joint
venture agreement with St Barbara Mines Limited ('the Annean Joint Venture') to
explore for economic gold resources in the Annean Joint Venture area in the
Meekatharra region of Western Australia.

Under the terms of the Annean Joint Venture, Mercator has the right to earn a
70% interest in the Meekatharra properties by spending AUD$8 million (approx.
GBP£3.1 million) on exploration.



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