Issue of Equity

Mercator Gold PLC
15 September 2006

London 15 September 2006 - Mercator Gold PLC (AIM:MCR)



                               MERCATOR GOLD PLC

                       ('Mercator Gold' or the 'Company')




FOR IMMEDIATE RELEASE


                              ISSUE OF SHARES

The Company announces that pursuant to the terms of the Convertible Loan Notes
with a nominal value of £1,000,000 issued, under a placing, on 14 December 2005
(the 'Convertible Loan Notes'), five holders of the Convertible Loan Notes have
elected to receive ordinary shares of 10p each in the Company (the 'Shares')
instead of a cash payment of interest. The Company will issue 28,828 Shares at
60p each, which will result in a cash saving of £17,296.80.

Application has been made for the Shares, which will rank pari passu with all
existing ordinary shares, to be admitted to trading on AIM.


For further information please contact:



Mercator Gold plc
Patrick Harford                Managing Director      Tel: [phone]



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



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






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