Issue of Equity

Mercator Gold PLC
10 January 2007



London 10 January 2007 - Mercator Gold PLC (AIM:MCR)



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

                                ISSUE OF SHARES


The Company announces that pursuant to the terms of the Convertible Loan Notes
with a nominal value of £1,000,000 issued, under a placing, on 14 December 2005
(the 'Convertible Loan Notes'), one holder of the Convertible Loan Notes has
elected to convert its Loan Note for £56,500 principal amount to ordinary shares
of 10p each in the Company (the 'Shares') at a conversion price of 60p each. The
Company will issue 94,167 Shares and as a result will have a total of 53,680,144
issued shares.

Application has been made for the Shares, which will rank pari passu with all
existing ordinary shares, to be admitted to trading on AIM.



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
Keith Irons




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