Issue of Equity

Mercator Gold PLC
30 June 2006

London 30 June 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 29,143 Shares at
60p each, which will result in a cash saving of £17,486.30.

Application has been made for the Shares, which will rank pari passu with all
existing ordinary shares, to be admitted to trading on AIM and dealings in the
Shares are expected to commence on 6 July 2006.


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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