Placing of 16,900,000 Million Ordinary Shares at 2.5p per Ordinary Share to raise £422,500

Placing of 16,900,000 Million Ordinary Shares at 2.5p per Ordinary Share to raise £422,500

Mercator Gold Plc

AIM: MCR
US OTC: MTGDY

Mercator Gold plc

(“Mercator Gold”, “Mercator” or the “Company”)

Placing of 16,900,000 Million Ordinary Shares at 2.5p per Ordinary Share to raise £422,500

London 15 March 2010: Mercator Gold plc announces the Placing (the "Placing") of 16,900,000 million new ordinary shares of 0.01p each ("New Ordinary Shares") at a price of 2.5 pence per share to raise £422,500 before expenses.

Old Park Lane Capital plc (“OPL”) acted for the Company in the Placing of the New Ordinary Shares, with predominantly OPL’s institutional and ultra high net worth investors, which is conditional upon, inter alia, admission of the New Ordinary Shares to trading on AIM.

Application has been made for the admission of 16,900,000 New Ordinary Shares to AIM effective 19 March 2010. The New Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares currently traded on AIM. Following the admission there will be 161,271,584 Ordinary Shares in issue.

Patrick Harford, Managing Director of Mercator Gold, commented: “We are very encouraged by the continued support of our existing shareholders and we welcome our new investors in this Placing, which provides the Company with the financial flexibility to develop existing projects and pursue new projects of merit.”

For further information please contact

Mercator Gold plc
Michael Silver, Chairman			[phone]
Patrick Harford, Managing Director			[phone]
Email: [e-mail]
Website: www.mercatorgold.com
Bankside Consultants Ltd			[phone]
Simon Rothschild
Oliver Winters
Cenkos Securities plc
Beth McKiernan			[phone]
Old Park Lane Capital PLC
Forbes Cutler, Director of Corporate Broking			[phone]
Barry Kaplan Associates			[phone]
Larry Kaplan

Old Park Lane Capital plc (“OPL”), which is authorised and regulated in the United Kingdom by The Financial Services Authority, is acting exclusively for the Company as, joint broker and placing agent in connection with the Placing. OPL is not acting for any other person and will not be responsible to anyone other than the Company for providing the protections afforded to clients of OPL or for advising any other person in relation to the Placing The new Ordinary Shares have not been, nor will be, registered under the United States Securities Act of 1933 (as amended) or under the securities legislation of any state of the United States of America or of any province or territory of Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa. There will be no public offering of the new Ordinary Shares in the United States. Subject to certain exceptions, the new Ordinary Shares may not be directly or indirectly offered, sold, transferred, taken up or delivered in, into or from the United States, Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa or their respective territories or possessions. This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy new Ordinary Shares in any jurisdiction in which such offer or solicitation is unlawful. Accordingly, copies of this announcement are not being and must not be mailed or otherwise distributed or sent in or into or from the United States, Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa and any person receiving this announcement (including custodians, nominees and trustees) must not distribute or send it in or into or from the United States, Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa. This announcement has not been approved by Cenkos or OPL for the purposes of section 21 of the Financial Services and Markets Act 2000. This announcement has not been examined or approved by The Financial Services Authority or the London Stock Exchange or any other regulatory authority.