Interim Results

Mercator Gold PLC
06 March 2006


FOR IMMEDIATE RELEASE                                               6 March 2006


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

                       INTERIM REPORT FOR THE SIX MONTHS

                             ENDED 31 DECEMBER 2005


Chairman's Statement to Shareholders


I am pleased to present your Company's Interim Report for the six months to 31
December 2005. This report covers the first six months of what has been a very
exciting period for the Company.  We have built  on our solid foundation of
exploration results at Meekatharra and negotiated successfully the acquisition
of St Barbara's (SBM) entire gold exploration and mining assets at Meekatharra.
This acquisition included:


   •  the 55 per cent interest in the Annean Joint Venture held by SBM;

   •  the three million tonne per annum Yaloginda mill and gold processing
      facility, together with the associated infrastructure;

   •  approximately 120 granted exploration tenements and 44 tenement
      applications along with associated intellectual property relating to these
      tenements and mining rights.


This acquisition consolidates and enlarges the Company's holdings over the
Meekatharra Belt, more than doubling the Company's gold resource base and adding
significant additional exploration ground to the Yaloginda project area. The
Company now has a total tenement holding of 1932 km(2) with defined gold
resources totalling 1.94 Moz.


The acquisition has provided the foundation for the company to raise a total of
£10 million during December 2005 and January 2006 as well as a capital
reconstruction facilitating a ten for one share consolidation.


This acquisition and its associated fund-raising were approved by shareholders
at an extraordinary general meeting on 18 January 2006 and consequently the
related balance sheet and ten for one share consolidation entries are not
reflected in the financial results reported to 31 December 2005. The Company
incurred a loss of £763,425 for the six month period to 31 December 2005,
largely attributed to ongoing exploration work at Meekatharra and the costs
associated with the recent acquisition and capital raising, all of which have
been expensed in the period under review.


The Company was recently pleased to announce the commencement of the 2006
drilling programme with a 16,000 metre campaign at Bluebird. This programme
targets gold mineralisation with the potential to be mined in the near term and
constitutes part of the Company's primary objective for the year, namely, the
definition of sufficient mineable ounces to support the commencement of
production at Meekatharra on a profitable and sustainable basis.


The Company's second strategic objective for 2006 is the expansion of the
resource base which presently stands at approximately two million ounces of
gold.  The Maid Marion project, at Meekatharra North is an advanced exploration
target and has the potential to add substantially to the Company's resource
base. Therefore, following the completion of the drilling at Bluebird, the
Company will carry out a 10,000 metre reverse circulation drilling programme at
this site.


Concurrent with the reverse circulation programmes at Bluebird and Meekatharra
North the Company will commence diamond drilling in mid- March at the recently
acquired Paddys Flat Project.  This project presently contains gold resources in
excess of 1.1 million ounces of gold. Resources at the Mickey Doolan and the
Prohibition prospects contain ounces we consider likely to be mineable in the
short term and accordingly a number of diamond drill holes are planned to
recover sufficient core sample to enable metallurgical and engineering studies
to be conducted.


Additional resource extensions and exploration drilling are planned for the
Paddys Flat area following the completion of the reverse circulation programme
at Bluebird and Meekatharra North.


The Company's medium term objective is to recommence production as soon as
feasible.  To this end a detailed analysis of the requirements for the plant and
power station refurbishment at the Yaloginda mill site is under way.  This is
expected to be completed by April.  Pit optimisations of the most advanced
projects are being carried out utilising the wealth of legacy data inherited
with the asset purchase.  Metallurgical and mining programmes are also being
designed to progress our knowledge and understanding of the prospects.


The vast data base acquired from Saint Barbara Limited, covering 20 years of
exploration activity, is being rationalised and validated. The Company believes
this data base is a truly outstanding asset from which the Company will draw
exploration potential for many years to come.


The Company has an aggressive, committed and highly qualified team of geologists
working to ensure the successful rejuvenation of the Meekatharra goldfield.


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

3 March 2006



Consolidated Profit and Loss Account

For the six months ended 31 December 2005
                                              6 months to  22 March 2004
                                              31 December             to
                                                     2005   30 June 2005
                                              (unaudited)      (audited)

                                                        £              £

Administrative expenses                         (725,476)      (926,654)
Total administrative expenses and               (725,476)      (926,654)
operating loss
Net Interest (payable) / receivable
& similar items
  Net Interest receivable                           5,503         29,718
  Foreign exchange gain / (loss)                 (43,452)         29,617
Loss on ordinary activities before              (763,425)      (867,319)
taxation

Taxation                                                -              -
Loss on ordinary activities after               (763,425)      (867,319)
taxation
Loss per share                                    (0.79)p        (2.03)p


All amounts relate to continuing activities



Consolidated Statement of Total Recognised Gains and Losses

For the six months ended 31 December 2005

                                              6 months to  22 March 2004
                                              31 December             to
                                                     2005   30 June 2005
                                              (unaudited)      (audited)

                                                        £              £
Loss for the financial year                     (763,425)      (867,319)
Exchange adjustments on foreign                     4,135              -
currency net investments
Total recognised gains and losses               (759,290)      (867,319)
for the financial year



Consolidated Balance Sheet

As at 31 December 2005

                                              31 December   30 June 2005
                                                     2005
                                              (unaudited)      (audited)
                                                         
                                                        £              £
Fixed assets
Intangible                                      2,118,990      1,453,885
Tangible                                           59,541         65,934
Total fixed assets                              2,178,531      1,519,819
Current assets

Debtors                                           299,287        194,972

Cash at bank and in hand                        1,059,011        954,467

Total current assets                            1,358,298      1,149,439

Creditors - amounts falling due within one        305,164        572,611
year


Net current assets                              1,053,134        576,828

Total assets less current liabilities           3,231,665      2,096,647

Creditors - amounts falling due after more        944,308              -
than one year
(convertible loan stock)

Net assets                                      2,287,357      2,096,647

Capital and reserves

Called-up share capital                           996,198        871,198
Share premium account                           3,317,599      2,492,599
Merger Reserve                                  (399,831)      (399,831)
Profit and loss account                       (1,626,609)      (867,319)
Equity shareholders' funds                      2,287,357      2,096,647





Shareholders' Funds

For the six months ended 31 December 2005

                                               6 months to 22 March 2004
                                               31 December            to
                                                      2005  30 June 2005
                                               (unaudited)     (audited)

                                                         £             £
Loss for the period                              (759,290)     (867,319)
Merger reserve arising on consolidation                  -     (399,831)
New share capital issued                           950,000     3,363,797
Net addition to shareholders' funds                190,710     2,096,647
Opening shareholders' funds                      2,096,647             -
Closing shareholders' funds                      2,287,357     2,096,647

Consolidated Cash Flow Statement

For the six months ended 31 December 2005

                                               6 months to  22 March 2004
                                               31 December             to
                                                      2005   30 June 2005
                                               (unaudited)      (audited)

                                                         £              £

Net cash outflow from operating                (1,062,707)      (527,002)
activities
Returns on investments and servicing of              5,503         29,718
finance

Capital expenditure and financial                (684,800)    (1,541,832)
investment

Net cash outflow before management of          (1,742,004)    (2,039,116)
liquid resources and financing
Management of liquid resources                   (153,000)      (647,000)
Financing:
Issue of ordinary shares                           950,000      2,963,966
Issue of convertible debentures                    940,000              -
Increase / (decrease) in cash in the               (5,004)        277,850
period



Reconciliation of net cash flow to
movement in net funds
Increase / (decrease) in cash in the               (5,004)        277,850
period
Change in net funds resulting from cash            (5,004)        277,850
flows
Exchange differences                              (43,452)         29,617
Movement in short term funds                       153,000        647,000
Movement in net funds for the period               104,544        954,467
Net funds at beginning of period                   954,467              -
Net funds at end of period                       1,059,011        954,467

Reconciliation of operating loss to
operating cash flows
Operating loss                                   (725,476)      (926,654)
Depreciation and amortisation charges               21,048         22,013
(Increase)/decrease in debtors                   (104,315)      (194,972)
Increase/(decrease) in creditors                 (253,964)        572,611
Net cash outflow from operating                (1,062,707)      (527,002)
activities

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 6 month period and on a weighted average of
     96,462,372 ordinary shares in issue during the period.  (The loss per share 
     for the prior period of 14 months was based on a weighted average of 
     42,807,238 ordinary shares in issue during that 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 period ended 30 June 2005.

5    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 
     2005 Statutory Accounts has been filed with the Registrar of Companies.
     The auditors' opinion on these Statutory Accounts was unqualified and did 
     not contain a statement under section 237 of the Companies Act 1985.

6    The Interim Report for the six months to 31 December 2005 was approved by 
     the Directors on 3 March 2006.

7    The Interim Report will be posted to Shareholders and will be available, 
     free of charge, for a period of at least one month, from Peek House, 3rd 
     Floor, Eastcheap, London EC3M 1EB



Company Information                      Joint Brokers
Company Number 05079979                  King & Shaxson Capital Limited
                                         6th Floor
Directors                                Candlewick House
T J Strapp                               120 Cannon Street
Non-executive Chairman                   London  EC4N 6AS
P A Harford
Managing Director
M J de Villiers                          Ocean Equities Limited
Finance Director                         3 Copthall Avenue
J R Vearncombe                           London  EC2R 7BH
Exploration Director                     
D Geldard
Operations Director                      
M Elias                                  Auditors
Non-executive Director                   PKF (UK) LLP
R N Allen                                Farringdon Place
Non-executive Director                   20 Farringdon Road
                                         London  EC1M 3AP

                                         Registrars
Secretary and Registered Office          Capita Registrars
M J de Villiers                          The Registry
Peek House                               34 Beckenham Road
3rd Floor                                Beckenham
20 Eastcheap                             Kent  BR3 4TU
London  EC3M 1EB
Tel: [phone]                 Principal Bankers
Fax: [phone]                 Barclays Bank plc
Email: [e-mail]             Town Gate House
Website: www.mercatorgold.com            Church Street East
                                         Woking
                                         Surrey  GU21 6XW

Nominated Adviser                        UK Solicitors to the Company
Beaumont Cornish Limited                 Cobbetts LLP
5th Floor                                Ship Canal House
10-12 Copthall Avenue                    King Street
London EC2R 7DE                          Manchester  M2 4WB

Australia office
Mercator Gold Australia Pty Ltd
41 Kishorn Road
Applecross 6153
Western Australia
Tel: [phone]
Fax: [phone]
Email: [e-mail]


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