Issue of shares and warrants

Mercator Gold PLC
06 October 2005


FOR IMMEDIATE RELEASE                           6 October 2005

                MERCATOR GOLD PLC ('MERCATOR' or the 'Company')

                          Issue of Shares and Warrants
                     Directors' Dealings and Shareholdings

Further to the underwritten offer for the early exercise of 8p warrants (the
'Warrants') and the issue of additional Warrants approved by Shareholders and
Warrantholders on 30 August 2005, (the 'Offer'), the Company announces the issue
of new ordinary shares of 1p each (the 'New Ordinary Shares') and Warrants.
Applications were received for the exercise of 2,561,906 Warrants and under the
terms of the Offer, the underwriters, Newland Resources Limited, will take up
the remaining 9,938,094 Warrants, making the total number of Warrants exercised
12,500,000 and raising a total of £1,000,000 for the Company before expenses.

Also under the terms of the Offer, 12,500,000 warrants at 10p expiring 7
November 2006 (the 'Additional Warrants') were issued.

Application will be made for the 2,561,906 New Ordinary Shares as subscribed for
under the Offer to be admitted to trading on AIM ('Admission'), and the
remaining New Ordinary Shares taken up by Newland Resources Limited will be
applied for separately on completion of the underwriting formalities. The
Additional Warrants are not to be admitted to trading on AIM and it is not the
intention of the Company to make application for them to be so admitted.

The Directors' Shareholdings further to:

-   the exercise of all of its Warrants by the Vearncombe Superannuation Fund;
-   the exercise of all of his Warrants by Michael de Villiers; and
-   following Admission

will be as follows:

                                           Number of               Percentage of
                                     Ordinary Shares              Enlarged Share
                                                                         Capital

Terence Strapp                               200,000                        0.22

Patrick Harford                           16,500,100                       18.39

Michael de Villiers                        1,270,000                        1.41

Julian Vearncombe                          1,800,000                           2

Susan Vearncombe                           1,800,000                           2

Michael Elias                                172,475                        0.19

Richard Allen                                      -                           -

Paul Loudon                                2,241,465                        2.49


For further information, please contact:

Patrick Harford                     Tel: [phone]
Managing Director
Mercator Gold

Roland Cornish                      Tel: [phone]
Chairman
Beaumont Cornish


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