First gold production

Mercator Gold PLC
01 October 2007



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


                      FIRST GOLD PRODUCTION AT MEEKATHARRA


 RAB, DIAMOND AND RC DRILLING PROGRAMMES TO COMMENCE AT THE PROMISING NEW EURO
                                    PROJECT


                                  HIGHLIGHTS



  • First gold poured at Meekatharra Gold Operations

  • RAB drilling to commence next week on additional newly defined gravity and
    high definition air magnetic survey targets at the Euro Project

  • Diamond Drill secured to confirm the strike and dip of the gold-bearing
    lodes at the Euro Project

LONDON: 1 October 2007 - Mercator Gold plc (AIM: MCR) is pleased to announce
that first commercial gold production has commenced at Meekatharra. Over 300
ounces (10kg) has been poured and production is on-going: more gold is expected
to be poured shortly to finalise September production with the Company poised to
increase production in October.



The Company also advises that a Rotary Air Blast (RAB) drilling program is
scheduled to commence at the beginning of October at the newly defined Euro
Project location, to further test newly defined targets defined from recent
geological field work, coupled with High Definition Magnetic and Gravity
surveys. At a time when exploration drill rigs are extremely difficult to secure
as a result of the booming conditions within Australia, Mercator Gold Australia
Pty Ltd has also secured a diamond drill rig to confirm the geological
interpretation of Euro's east-west structures and the associated strike and dip
of the gold-bearing lodes. The rig is due to commence drilling in the last week
of October following the completion of the RAB program.



The Company has had further success in locating a reverse circulation (RC) drill
rig to follow on from the diamond drilling program at Euro, with this rig
scheduled to commence drilling in early November as the Company aims to
establish an initial JORC compliant resource for the project. The forthcoming
drilling programs will build on the excellent results reported from the Euro
Project on 19 September, which included 1m @ 94.3 g/t from 79m, 3m @ 23.8 g/t
from 102m and 10m @ 5.0 g/t from 116m.



Mercator's Managing Director, Mr Patrick Harford, said:



'After several years rebuilding the asset base at Meekatharra, Mercator is ready
to put the district 'back to work'.  We wish to thank our shareholders for their
support and assure them that we will do our best to ensure that Mercator's
operations form a profitable and sustainable base on which the Company can
continue to grow.  Our exploration potential is high both at the new greenfields
Euro Project and in all directions around the Prohibition-Vivian-Consols ore
bodies at Paddy's Flat and we look to the future with confidence and excitement.
'





Competent Persons Report - Consent for release



The information in this report is based on information compiled by Alan Coles
and Denis Geldard.



Alan Coles and Denis Geldard are full time employees of Mercator Gold Australia
Pty Ltd and are Members of the Australasian Institute of Mining and Metallurgy.



Alan Coles and Denis Geldard have sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to the
activity which they are undertaking to qualify as Competent Persons as defined
in the 2004 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'.



Alan Coles and Denis Geldard consent to the inclusion in the report of the
matters based on this information in the form and context in which it appears.



For further information please contact:





Mercator Gold plc

Terry Strapp, Chairman                     Tel: [phone]
Patrick Harford, Managing Director         Tel: [phone]

Email:  [e-mail]

Website:  www.mercatorgold.com





Released by:

Bankside Consultants Ltd                   Tel: [phone]
Simon Rothschild
Keith Irons
Oliver Winters




Public Relations in Australia:

Read Corporate
Nicholas Read /Jason Cunningham            Tel: [phone]










AIM:  MCR


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