Interim Results

Mercator Gold PLC
28 February 2005



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

          Unaudited results for the nine months ended 30 November 2004

LONDON - 28 February 2005 - The Directors of Mercator Gold plc (AIM: MCR), the
UK based gold exploration company, are pleased to announce its results for the
nine months ended 30 November 2004.

Highlights

   • Admission to AIM on 8 October 2004

   • Annean Joint Venture - drilling commenced at Yaloginda

   • Geophysical program commenced at Meekatharra on target

Post 30 November 2004

   •Initial drilling of Bluebird, one of the three resource extension targets
    bring drilled in the Yaloginda region near Meekatharra, intersects
    high-grade gold.

   •High-grade gold mineralization intersected at Surprise, the second of
    three targets being drilled in the Yaloginda region near Meekatharra.

   •Additional £1.25 million funding raised

   •Ocean Equities Ltd appointed as joint broker

Commenting on the results, Patrick Harford, Managing Director of Mercator said:

'The last nine months have been highly significant for Mercator Gold. Our
decision to list on AIM in October followed by the rapid delineation of
high-grade gold at Bluebird and Surprise has earned us continued support from
the market and allowed us to raise an additional £1.25 million in funding. We
are now well placed to explore the potential of our significant Meekatharra gold
properties and look forward to generating shareholder value in the period
ahead.'

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]

Phillip Securities UK Limited
Nick Bealer                                   Tel: [phone]

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

Management Commentary and Analysis of Financial Position and Results of
Operations

The Company announces its interim statement for the period from incorporation to
30 November 2004 during which time much has been achieved. Prior to admission to
AIM on 8 October 2004 the Company acquired the whole of the issued share capital
of Aurogenic Resources Pty Ltd, now renamed Mercator Gold Australia Pty Ltd,
which holds the Annean Joint Venture with St Barbara Mines Limited at
Meekatharra in Western Australia. The Company then proceeded to raise £1.89
million in funding to allow work to commence on the Annean Joint Venture. Under
the terms of the Annean Joint Venture the Company has the right to earn a 70%
interest in the Meekatharra properties by spending AUD$8 million on exploration.

Since its admission to AIM the Company has announced results from the
exploration work at Meekatharra which are detailed in the Company's press
release of 9 December 2004 and 18 January 2005. The initial drilling at
Meekatharra has returned encouraging results the full details of which can be
found at the Company web site www.mercatorgold.com

On 14 February 2005 the Company announced it had successfully raised a further
£1.25 million which will be used to fund drilling at Meekatharra and for general
working capital. It was also announced that Mercator had appointed Ocean
Equities Ltd as Joint Broker to the Company.

Outlook
Mercator's management has an initial exploration target of 2 million ounces of
gold contained within four resources, each of at least 500,000 ounces within the
Annean Joint Venture area. The Company has reported high-grade drilling results
from the first two target areas, Bluebird and Surprise.

Mercator Gold Plc

Consolidated Profit and Loss Account
for the Period 22 March 2004 to 30 November 2004 - Unaudited

                                                                             £
   TURNOVER                                                                  -

   Administrative expenses                                             469,203

                                                                      (469,203)

   Other operating income                                               15,360

   OPERATING LOSS                                                     (453,843)

   Interest receivable and similar income                                9,406

                                                                      (444,437)

   Interest payable and similar charges                                    208

   LOSS ON ORDINARY ACTIVITIES
   BEFORE TAXATION                                                    (444,645)

   Tax on loss on ordinary activities                                        -

   LOSS FOR THE FINANCIAL PERIOD                                      (444,645)
   AFTER TAXATION

   DEFICIT FOR THE PERIOD
   FOR THE GROUP                                                      (444,645)

   LOSS PER SHARE (pence) -                                           (0.0086p)
   basic and diluted

CONTINUING OPERATIONS

None of the group's activities were discontinued during the current
period.

TOTAL RECOGNISED GAINS AND LOSSES

The group has no recognised gains or losses other than the loss for
the current period.


Mercator Gold Plc

Consolidated Balance Sheet
30 November 2004 - Unaudited

                                                            £                £
FIXED ASSETS
Intangible assets                                                      735,995
Tangible assets                                                         19,956
Investments                                                                  -

                                                                       755,951

CURRENT ASSETS
Debtors                                               132,569
Cash at bank                                          942,336

                                                    1,074,905

CREDITORS
Amounts falling due within one year                   214,623

NET CURRENT ASSETS                                                     860,282

TOTAL ASSETS LESS CURRENT
LIABILITIES                                                          1,616,233

CAPITAL AND RESERVES
Called up share capital                                                514,948
Share premium                                                        1,545,930
Profit and loss account                                               (444,645)

SHAREHOLDERS' FUNDS                                                  1,616,233

ON BEHALF OF THE BOARD:


.................................................................
M J De Villiers - Director
Approved by the Board on: 28 February 2005


Mercator Gold Plc

Cash Flow Statement
for the Period 22 March 2004 to 30 November 2004 - Unaudited

                                                            Notes            £
Net cash outflow
from operating activities                                     1       (358,693)
          
          Returns on investments and
          Servicing of finance                                2          9,198

          Capital expenditure                                 2       (769,047)

                                                                    (1,118,542)

          Financing                                           2      2,060,878

          Increase in cash in period                                   942,336
          -------------------------                  -----------     ---------

          Reconciliation of net cash flow
          to movement in net debt                             3

          Increase in cash in the period                               942,336

          Change in net debt resulting
          From cash flows                                              942,336

          Movement in net debt in the period                           942,336
          Net debt at 22 March 2004                                             -

          Net funds at 30 Novemb     r 2004                                942,336



Mercator Gold Plc

Notes to the Cash Flow Statement
for the Period 22 March 2004 to 30 November 2004 - Unaudited

1.  RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW 
    FROM OPERATING ACTIVITIES
                                                                             £
Operating loss                                                        (453,843)
Depreciation charges                                                    13,096
Increase in debtors                                                   (132,569)
Increase in creditors                                                  214,623

Net cash outflow from operating activities                            (358,693)

2.  ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH 
    FLOW STATEMENT
                                                                             £
    Returns on investments and servicing of finance
    Interest received                                                    9,406
    
    Interest paid                                                         (208)
    
    Net cash inflow for returns on investments and servicing 
    of finance                                                           9,198
    
    Capital expenditure
    Purchase of intangible fixed assets                               (745,138)
    Purchase of tangible fixed assets                                  (23,909)
    
    Net cash outflow for capital expenditure                          (769,047)
    
    Financing
    Share issue                                                        514,948
    Share premium                                                    1,545,930
    
    Net cash inflow from financing                                   2,060,878


3.                   ANALYSIS OF CHANGES IN NET DEBT

                                 At                                         At
                            22.3.04             Cash flow             30.11.04
                                  £                     £                    £
Net cash:
Cash at bank                      -               942,336              942,336
                                  -               942,336              942,336
              Total               -               942,336              942,336



Mercator Gold Plc

Notes to the Financial Statements
for the Period 22 March 2004 to 30 November 2004 - Unaudited

1. ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared in accordance with applicable
accounting standards generally accepted in the United Kingdom. These interim
financial statements are unaudited and do not constitute statutory accounts as
defined by Section 240 of the Companies Act 1985.

Basis of consolidation

The Group financial statements consolidate the financial statements of the
Company and its subsidiary undertaking made up to 30 November 2004.

The profits and losses of the subsidiary undertaking are consolidated from the
date of acquisition to the date of disposal. On acquisition, the assets and
liabilities of a subsidiary are measured at their fair value at the date of
acquisition.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a 
business in 2004, is being amortised evenly over its estimated useful life of 
twenty years.

Exploration and development costs

Costs relating to the acquisition, exploration and development of mineral
properties are capitalised until such time as an economic reserve is defined 
and mining commences or the mining property is abandoned.

Once mining commences the asset is amortised on a depletion percentage basis.
Provision is made for impairments to the extent that the asset's carrying value
exceeds its net recoverable amount.

Computer software

Computer software is amortised over its estimated useful life at 40% on cost.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off
each asset over its estimated useful life.

Plant and machinery               - 20% to 50% on cost
Fixtures and fittings             - 20% to 50% on cost

Deferred tax

In accordance with FRS19 full provision is made at current rates for taxation
deferred in respect of all timing differences. Deferred tax balances are not
discounted.

Deferred tax assets are only recognised where they arise from timing 
differences where their recoverability is regarded as more likely than not. 
Deferred tax is recognised in respect of all timing differences that have 
originated but not reversed at the balance sheet date.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at 
the rates of exchange ruling at the balance sheet date. Transactions in foreign
currencies are translated into sterling at the rate of exchange ruling at the
date of transaction. Exchange differences are taken into account in arriving at
the operating result.
For the purpose of consolidation the balance sheets of the foreign subsidiaries
are translated at the closing rate and the profit and loss accounts at the
average rate during the year.

Mercator Gold Plc

Notes to the Financial Statements - continued
for the Period 22 March 2004 to 30 November 2004 - Unaudited

1. ACCOUNTING POLICIES - continued

Going concern

The Group is in the early stages of development and has limited cash resources,
its success will depend largely upon the outcome of future mining exploration
and development programmes of Mercator Gold Australia Pty Limited in Australia.

The directors believe they have considered all relevant information and have
concluded that it is appropriate to prepare these financial statements on the
going concern basis. The financial statements do not include any adjustments
that may be required if the funds are not available or if the trading plans 
were not materially achieved.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the profit and loss account
as incurred.

2. LOSS PER SHARE

Basic earnings/(loss) per share is computed by dividing the profit or loss 
after taxation for the period available to the ordinary shareholders by the 
sum of the weighted average number of ordinary shares in issue and ranking for 
dividend during the period. Diluted earnings/(loss) per share is computed by 
dividing the profit or loss after taxation for the period by the weighted 
average number of ordinary shares in issue, adjusted for the effect of all 
dilutive potential ordinary shares that were outstanding during the period.

The following sets forth the computation for the Company's basic and diluted
loss per share (LPS)

Numerator                                                                    £

Numerator for basic LPS retained loss                                 (444,645)

Denominator                                                             Number

Denominator for basic LPS                                           51,494,800

Effects of diluted securities - options                             78,791,900

                                                                   130,286,700

Basic LPS                                                             (0.0086p)

Diluted LPS                                                           (0.0086p)

The basic and diluted loss per share are the same as the effect of the
outstanding shares options is anti dilutive and therefore excluded.



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