Issue of Equity

Mercator Gold PLC
10 July 2007





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

                            EXERCISE OF SHARE OPTION


The Company announces that pursuant to the terms of the Company's Unapproved 
Share Option Plan and Articles of Association of the Company, one Option Holder 
has elected to exercise Share Options in the amount of 25,000 Ordinary Shares 
('the Shares') of 10p each in the Company at a conversion price of £0.75 each.

Application has been made for the shares, which rank pari passu with all existing 
shares, to be admitted to trading on AIM. Dealings in the Ordinary Shares are 
expected to commence on 12 July 2007.

Following the issue, the total of Shares in issue will be 62,269,912.


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
Oliver Winters


AIM: MCR



                      This information is provided by RNS
            The company news service from the London Stock Exchange