Update

Update

Mercator Gold Plc

MERCATOR GOLD PLC
(“Mercator Gold”, “Mercator” or the “Company”)

Update

• Initiatives to grow the business of ACS Asia in place
• Potential new mining sector assets being evaluated
• Key licence for Area 81/Derewo River gold project granted and production expected to commence within 3 months
• Refinancing of Mercator Gold Australia Pty Ltd progressing

London - 30 April 2009: Mercator Gold plc, the diversified mining and metals group with interests in South East Asia and Australia, is pleased to provide an update on its current activities.

ACS Asia (1996) Co Ltd (“ACS Asia”)

ACS Asia, in which Mercator holds a 70 per cent interest, is a Thai company with rights to manufacture and sell within South East Asia the world renowned Unistrut brand of metal construction products.

The business of ACS Asia has significant potential for expansion, and contracts for ACS Asia to supply a number of multinational companies are currently under negotiation. Success in these negotiations would have a highly positive impact on the profitability and value of ACS Asia.

Over the 6 months from October 1 2008 to March 31 2009, ACS Asia made a net profit of approximately US$400,000 on total sales of approximately US$2.7 million, with a gross margin of US$1.3 million. Turnover for the year commencing October 1 2008 and ending September 31 2009 is projected to be in the range of US$7-8 million with EBIT (earnings before interest and tax) equal to 10 per cent of sales. The preceding figures are sourced from the unaudited management accounts of ACS Asia.

As Mercator’s core sphere of activity is to remain the mining sector, the Company will at an appropriate time give consideration to listing ACS Asia separately or to disposing of it at a profit.

Potential Transactions

Recent volatility in commodity prices along with the uncertain financial climate has led to various high quality assets becoming available for acquisition or joint venture. Various promising mining sector opportunities have been identified and are currently being evaluated by Mercator.

Mercator is currently exploring a number of financing opportunities that would substantially improve the Company’s ability to acquire and develop new assets.

Area 81/Derewo River Gold Project

A key licence constituting part of the Area 81/Derewo River alluvial gold project in Papua Province, Indonesia has now been granted. This licence is estimated to contain some 8 million cubic metres of minable alluvial gravels, and gold production is expected to commence within three months.

It is expected that Mercator will hold a minority interest in the Area 81/Derewo River project. The Company has advanced some £170,000 to the project operator for working capital. This sum is required to be repaid by the end of September 2010.

Silver Swan Group Limited (“Silver Swan”)

Mercator holds 10 million ordinary shares and 4 million performance shares in Silver Swan Group, an Australian Stock Exchange listed exploration company. Mercator’s 10 million ordinary shares are worth around AUD2.7 million, based on the market price at close of trading yesterday.

Refinancing of Mercator Gold Australia Pty Ltd (“MGA”)

Efforts to refinance Mercator Gold Australia Pty Ltd (MGA) are continuing, and a proposal to list MGA on the Australian Stock Exchange in combination with a restructuring of its financial position is being evaluated. A review of the reserve and resource base at Meekatharra and a plan for the recommencement of gold production has been completed in conjunction with Tulla Resources Group Pty Ltd.

Patrick Harford, Managing Director of Mercator Gold plc, comments:

“The acquisition late last year of ACS Asia has provided Mercator with a reliably cash generative asset, which underpins the near term future of the Company. Negotiations on key new contracts for ACS Asia are now at an advanced stage, and the overall outlook for the business is considered positive.

In addition, Mercator now holds an interest in an exciting alluvial gold asset that is expected to enter production shortly, and the Company is evaluating certain potentially transformational transactions involving new assets.”

For further information please contact:
Mercator Gold plc
Patrick Harford, Managing Director		Tel: [phone]
Email: [e-mail]
Website: www.mercatorgold.com
Bankside Consultants Ltd		Tel: [phone]
Simon Rothschild
Oliver Winters

AIM: MCR