Interim Results

Mercator Gold PLC
30 March 2007


For immediate release

30 March 2007

                               Mercator Gold Plc Plc

                           ('Mercator' or the 'Company')
                                  Ticker- AIM:MCR

              INTERIM REPORT FOR THE SIX MONTHS TO 31 DECEMBER 2006
                                CHAIRMAN'S REPORT

I am pleased to present your Company's Interim Report for the six months to 31
December 2006. Mercator continues to advance towards its target of producing 
gold bymid-2007 and having at least four years of mineable reserves in place. 
The Companyhas already defined a mining reserve of 75,000 ounces of gold at 
Surprise and anindicated resource of 380,000 ounces of gold at 
Prohibition-Vivian-Consols. Furtherdrilling is being conducted at Prohibition to 
extend the existing resources andstudies are currently underway to defining a 
probable reserve to allow for a decisionwith regard to the second stage 
production planned for early 2008. The recentfund-raising of £4.49 million 
provides the capital required to achieve the aboveobjectives.

Refurbishment of the Yaloginda Plant is nearing completion with re-commissioning
expected to commence during May. All of the plant components starting with the
crushing circuit, milling circuit, leaching and finishing with the gold elution
circuit will have been fully tested before full scale production is achieved. 
Lowgrade ore from existing stockpiles and from the pre strip material for the 
Surpriseopen pit will provide the initial re-commissioning ore source. Full 
scale productionwould follow the build up of gold inventory in the Carbon in 
Leach circuit.Updated Resource estimates for Prohibition-Vivian-Consols are 
under review togetherwith various mining scenarios that will lead to Probable 
Reserve announcements in thecoming weeks.

Plans are being developed to optimise the use of Mercator's extensive tenement
holdings at Meekatharra, which presently cover 1,932km2 with contained gold 
resourcesof 2,160,000 ounces. The Board believes there is considerable potential 
to utilisethese ground holdings in the current positive gold-mining environment. 
The Board ispresently considering a number of alternatives in this regard.
Your Company's professional team continues to deliver positive results on all 
frontsand I am confident they will continue to deliver at similarly high 
standards in thefuture.

To compliment the existing team, three new production orientated appointments 
havebeen made: a highly skilled and experienced Mining Engineer to the position 
ofOperations Manager, the appointment of an equally experienced Metallurgist as 
ProcessManager, and appointment of a Mine Planning engineer. At a time when 
skilledprofessionals are highly sought after in Western Australia, Mercator has 
been mostfortunate to attract the calibre of these professionals who are also 
locating to siterather than electing a fly in fly out roster.

I look forward to reporting to you on your company's progress on a regular basis
throughout this exciting phase in our development.

Terrence Strapp
CHAIRMAN



Consolidated Profit and Loss Account
For the six months ended 31 December 2006

                                        6 months to   6 months to   12 months to
                                        31 December   31 December        30 June
                                               2006          2005           2006
                                         (unaudited)   (unaudited)     (audited)
                                              £             £              £
Administrative expenses                 (1,341,210)     (725,476)    (2,127,615)
Other income                               102,865             -        233,469
----------------------------              ---------      --------       --------
Operating loss                          (1,238,345)     (725,476)    (1,894,146)
Interest payable and similar items         (92,022)      (47,881)       (94,682)
Interest receivable & similar items         315,098         9,932        152,203
----------------------------              ---------      --------       --------
Loss on ordinary activities before
taxation                                (1,015,269)     (763,425)    (1,836,625)
Taxation                                         -             -              -
----------------------------              ---------      --------       --------
Loss on ordinary activities after
taxation                                (1,015,269)     (763,425)    (1,836,625)
----------------------------              ---------      --------       --------
Loss per share                               (1.9)p        (7.9)p         (7.5)p
----------------------------              ---------      --------       --------

All amounts relate to continuing activities

The loss per share for the 6 months ended 31December 2005 has been re-stated to 
take account of the subsequent 10:1 share consolidation


Consolidated Statement of Total Recognised Gains and Losses
For the six months ended 31 December 2006

                                        6 months to   6 months to   12 months to
                                        31 December   31 December        30 June
                                               2006          2005           2006
                                        (unaudited)   (unaudited)      (audited)
                                                 £             £              £
Loss for the financial year             (1,015,269)     (763,425)    (1,836,625)
Exchange adjustments on foreign
currency net investments                    30,095         4,135       (929,394)
----------------------------              ---------      --------       --------
Total recognised gains and losses
for the financial year                    (985,174)     (759,290)    (2,766,019)
----------------------------              ---------      --------       --------


Consolidated Balance Sheet
At 31 December 2006
                                        31 December   31 December        30 June
                                               2006          2005           2006
                                        (unaudited)   (unaudited)      (audited)
Fixed assets
Intangible                               14,168,042     2,118,990     10,529,014
Tangible                                  3,738,268        59,541      2,859,412
----------------------------              ---------      --------       --------
Total fixed assets                       17,906,310     2,178,531     13,388,426
----------------------------              ---------      --------       --------
Current assets
Stocks                                       91,810             -         91,687
Debtors                                     390,017       299,287        403,524
Cash at bank and in hand                  7,406,500     1,059,011     13,297,216
----------------------------              ---------      --------       --------
Total current assets                      7,888,327     1,358,298     13,792,427
Creditors - amounts falling due
within one year                           (672,155)     (309,472)    (1,140,995)
----------------------------              ---------      --------       --------
Net current assets                        7,216,172     1,048,826     12,651,432
----------------------------              ---------      --------       --------
Total assets less current
liabilities                             25,122,482     3,227,357     26,039,858
----------------------------             ---------      --------       --------
Creditors - amounts falling due
after more than one year                 (900,681)     (811,226)      (854,784)
Provisions for liabilities             (1,207,200)            -     (1,205,594)
----------------------------             ---------      --------       --------
Net assets                              23,014,601     2,416,131     23,979,480
----------------------------             ---------      --------       --------
Capital and reserves
Called -up share capital                 5,358,598       996,198      5,355,215
Share premium account                   22,545,572     3,317,599     22,528,660
Merger reserve                            (399,831)     (399,831)      (399,831)
Other reserves                             128,774       128,774        128,774
Profit and loss account                 (4,618,512)   (1,626,609)    (3,633,338)
----------------------------              ---------      --------       --------
Equity shareholders' funds               23,014,601     2,416,131     23,979,480
----------------------------              ---------      --------       --------


Consolidated cash flow statement
For the six months ended 31 December 2006

                                        6 months to   6 months to   12 months to
                                        31 December   31 December        30 June
                                               2006          2005           2006
                                        (unaudited)   (unaudited)      (audited)
                                                 £             £              £
Net cash outflow from operating
activities                              (1,605,355)   (1,062,707)      (376,588)
Returns on investments and
servicing of finance                        289,269         5,503        138,752
Capital expenditure and financial
investment                              (4,586,958)     (684,800)   (11,988,877)
----------------------------              ---------      --------       --------
Net cash outflow before management
of liquid resources and financing:      (5,903,044)   (1,742,004)   (12,226,713)
Management of liquid resources            5,460,796     (153,000)   (12,939,994)
Financing                                         -     1,890,000     25,426,774
----------------------------              ---------      --------       --------
Increase / (decrease) in cash in
the period                                 (442,248)       (5,004)       260,067
----------------------------              ---------      --------       --------
Reconciliation of net cash flow to
movement in net funds
Increase / (decrease) in cash in
the period                                 (442,248)       (5,004)      260,067
Movement in short term deposits          (5,460,796)       153,000   12,939,994
Exchange differences                         12,328        (43,452)    (857,312)
----------------------------              ---------      --------       --------
Increase in cash and short term
deposits                                  5,890,716)      104,544     12,342,749
Increase in debt due after more
than one year                              (45,897)     (811,226)      (854,784)
----------------------------              ---------      --------       --------
Movement in net funds in the period      (5,936,613)     (706,682)    11,487,965
Net funds at beginning of period         12,442,432       954,467        954,467
----------------------------              ---------      --------       --------
Net funds at end of period                6,505,819       247,785     12,442,432
----------------------------              ---------      --------       --------
Reconciliation of operating loss to
operating cash flows
Operating loss                          (1,238,345)     (725,476)    (1,894,146)
Depreciation and amortisation
charges                                      86,840        21,048         48,187
(Increase) / decrease in debtors            13,506      (104,315)      (208,552)
(Increase) / decrease in
inventories                                   (122)            -        (91,687)
Increase / (decrease) in creditors         (467,234)     (253,964)     1,769,610
----------------------------              ---------      --------       --------
Net cash flow from operating
activities                              (1,605,355)   (1,062,707)      (376,588)
----------------------------              ---------      --------       --------


Shareholders' Funds
For the six months ended 31 December 2006

                                        6 months to   6 months to   12 months to
                                        31 December   31 December        30 June
                                               2006          2005           2006
                                        (unaudited)   (unaudited)      (audited)
                                                 £             £              £
Loss for the period                     (1,015,269)     (763,425)    (1,836,625)
Exchange adjustments on foreign
currency net investments                    30,095         4,135       (929,394)
Equity reserve arising on issue of
convertible loan notes                            -       128,774        128,774
New share capital issued                     20,295       950,000     24,520,078
----------------------------              ---------      --------       --------
Net addition to shareholders' funds        (964,879)      319,484     21,882,833
Opening shareholders' funds              23,979,480     2,096,647      2,096,647
----------------------------              ---------      --------       --------
Closing shareholders' funds              23,014,601     2,416,131     23,979,480
----------------------------              ---------      --------       --------

  Notes:

      1   No dividend is proposed in respect of the period
      2   The results for the period are derived from continuing activities.
      3   The calculations of loss per share have been based on the retained
          loss after taxation for the period and on a weighted average of
          53,568,566 ordinary shares in issue during the period.  
      4   The unaudited results have been prepared on a going concern basis and 
          on the basis of the accounting policies adopted in the audited 
          accounts for the year ended 30 June 2006.
      5   Creditors falling due after more than one year

                                                        31 December      30 June
                                                               2006         2006
          Convertible unsecured loan stock:                       £            £
          Redemption value at 31 December 2006            1,000,000    1,000,000
          Un-amortised issue costs and equity reserve       (99,319)   (145,216)                                      
          ----------------------------------------------------------------------
          Convertible loan stock balance at of period        900,681     854,784
          ----------------------------------------------------------------------

          On 14 December 2005, the Company issued two-year convertible loan
          notes carrying a coupon rate of 9.25% interest, payable quarterly in
          cash or, at the holder's option, by the issue of shares at £0.60 each.
          At any time after one year, the holders have the option to convert the
          face value of their holdings to shares at a price of £0.60 per share.
          After one year, the Company has the option to redeem the notes at face
          value plus double the accrued interest outstanding at the time of
          giving notice. The holder could elect to receive the redemption
          ayment in cash or shares at the rate of £0.60 per share. Any notes
          remaining on the second anniversary of their issue will be repaid in
          cash, plus accrued interest. The allocation of redemption face value
          between liability and equity components has been accounted for in
          accordance with Financial Reporting Standard FRS 25.
      6   The interim report is unaudited and does not constitute Statutory
          Accounts as defined in section 240 of the Companies Act 1985. A copy 
          of the Group's 2006 Statutory Accounts has been filed with the 
          Registrar of Companies. The auditors' opinion on those Statutory 
          Accounts was unqualified and did not contain a statement under 
          section 237 of the Companies Act 1985.
      7   The Interim Report for the six months to 31 December 2006 was approved 
          by the Directors on 29 March 2007.

Enquiries to:

Mercator Gold plc
Patrick Harford, Managing Director           Tel: [phone]
Terry Strapp, Chairman                       Tel: [phone]
Email: [e-mail]
Website: www.mercatorgold.com

Bankside Consultants Ltd                     Tel: [phone]
Keith Irons




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