Meekatharra update

Mercator Gold PLC
07 February 2006

7th February 2006



  • Work commences on Mercator's 100% owned Meekatharra assets

  • Appointment of Operations Director

  • Completion of desktop review of 1.9 million ounce resource - three key
    areas identified for early gold production

LONDON - Mercator Gold plc (AIM: MCR) ('Mercator' or 'the Company') announces,
detailed work has commenced on the mineralised zones at Bluebird, Paddy's Flat,
and Meekatharra North.

Drilling programmes have been initiated, together with reviews of previous
drilling results and historic reports, to determine and evaluate a timetable for
future production.  Mercator will, as a result of these studies, target as
early as possible a recommencement of profitable and sustainable production.

Mercator also announces the appointment, with immediate effect, of Mr Denis
Geldard, aged 59, as Operations Director to co-ordinate and manage the Company's
move to gold production. Mr. Geldard is a mining engineer with considerable
international and Australian gold mining experience. He was previously a Senior
Manager in the Iluka Resources Ltd Group in Australia, Indonesia and the USA,
and has extensive previous production experience managing gold operations in
Western Australia including the Meekatharra gold belt.   From January 1999 until
January 2002 Mr Geldard was the Operations Director of PT Kobe Tin.

Commenting on the planned operations, Patrick Harford, MD of Mercator, said: '
2006 is set to be a busy and productive year for Mercator.  Current drilling and
evaluation work will forge the way for an early assessment of sustainable
production.  I am also delighted to welcome Denis Geldard as Operations Director
to co-ordinate the project.'

Bluebird

Evaluating the Bluebird deposit for production is the first priority for the
Company, given its close proximity to the treatment plant and the advanced
status of this project.

Bluebird, the subject of previous drilling, has a current global resource of
5,280,000 tonnes @ 1.9 g/t Au for 326,000 ounces.  The bulk of these ounces are
contained within five high-grade domains, 1,698,000 tonnes @ 4.5 g/t Au for
244,000 ounces, surrounded by a lower grade alteration halo.  This resource has
been defined over a strike length of 500 metres.

Gold mineralisation extends north and south of the current resource with RC and
diamond core drilling planned, in early 2006, to extend the resource along
strike, and at depth.

Resource definition and exploration drilling is planned targeting the Bluebird
lode system immediately north of the existing bluebird pit, and on the Edin
Hope, and Polar Star lodes to the south.

This drilling is aimed at testing gold mineralisation over a strike length of
1.8 kilometres with additional work planned on other anomalies with potential to
fall within an enlarged open cut.

Once this drilling has been completed the entire Bluebird deposit will be
modelled and optimised to evaluate mine viability and processing at the
Company's Yaloginda Treatment Plant, 1.5 km from Bluebird.

Paddy's Flat

The acquisition of tenements covering the Paddy's Flat area at Meekatharra, (an
area that has historically produced more than 1.9 M oz of gold), presents a
unique opportunity for the Company to substantially increase its resource base,
and for the long term viability of the Meekatharra operations.

Paddy's Flat, about 16 km from the Yaloginda Treatment Plant, has current
indicated and inferred resources of approximately 1.3M oz gold which are in
transitional to fresh sulphide ore, with remnant oxide material located between
the existing pits.

Historic drill intersections that currently lie outside defined resources
include 59m @ 4.1 g/t (VIRCD029) and 85m @ 3.5 g/t (VIRCD033); both holes were
drilled in 2005 with the intersects correlating with a broad alteration zone.

An extensive review of drilling results and historic reports is currently
underway, along with a review of the geology of the deposits and SpaDiSTM
analyses.  The current work is being undertaken on the Mickey Doolan, Vivian
Consols, Mudlode and Prohibition deposits all at Paddy's Flat with detailed
drill targeting to, test mineralisation continuity, expand resources begin
metallurgical test work and resource development in mid-2006.

Meekatharra North

Meekatharra North comprises major zones of oxide mineralisation located
approximately 30km from the Yaloginda Treatment Plant.

Current drilling indicates gold mineralisation from surface within an extensive
alteration zone.  Anomalous gold values are present within the alteration zone
over a strike length of 3 km, with deep weathering potentially indicating low
cost mining.  Mineralisation has a current along strike length of 450m, with the
deposit open below 100m vertical depth and along strike to the north.

An extensive drilling campaign in excess of 10,000m of RC drilling in
conjunction with a Pole-Dipole IP survey is planned for the first half of 2006.
The drilling will delineate the full extent of mineralisation, enable the
definition of a resource and evaluate the viability of open cut mining in oxide
ores from surface.

There are no other details requiring disclosure under the Aim Rules relating to
further information on the appointment of Denis Geldard, including other public
company directorships.

Ends

For further information please contact:

Mercator Gold plc
Patrick Harford, Managing Director                   Tel:  [phone]
Terry Strapp, Chairman                               Tel : [phone]
Michael de Villiers, Finance Director                Tel:  [phone]
Dr Julian Vearncombe, Exploration Director           Tel: [phone]
E:mail: [e-mail]
www.mercatorgold.com


Beaumont Cornish Limited
Roland Cornish                                        Tel:  [phone]

Ocean Equities Ltd
Will Slack                                            Tel:  [phone]

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



Mercator operates a continuous disclosure policy with respect to exploration
results.  Company news releases are based on technical information approved by
the Company's Exploration Director, Julian Vearncombe BSc (Hons), PhD, FGS,
RPGeo, FAIG.  Information on the acquisition resources was supplied by SBM.



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