Issue of Equity

Mercator Gold PLC
01 February 2006




                               MERCATOR GOLD PLC

                       ('Mercator Gold' or 'the Company')


                                Issue of Equity


London - 1 February 2006 - Mercator Gold plc (AIM: MCR)

Under the terms of the Agreement for the purchase of the mining and exploration
assets at Meekatharra acquired from St Barbara Limited ('SBM'), the Company has
issued a further 92,579 new ordinary shares to SBM as final consideration for
the exchange rate movement in the Sterling versus Australian Dollar up to the
date of settlement.

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

SBM now holds 11,016,949 shares which represents 28% of the issued share capital
of the Company. These shares are subject to a 'lock in' agreement for a period
of 12 months from admission.

For further information, please contact:

Mercator Gold plc
Patrick Harford, Managing Director [phone]
Terry Strapp, Chairman [phone]
Michael de Villiers, Finance Director [phone]
www.mercatorgold.com

Beaumont Cornish Limited
Roland Cornish + 44 (0) 20 7628 3396

King & Shaxson Capital Ltd
Nick Bealer + 44 (0) 20 7426 5986

Ocean Equities Ltd + 44 (0) 20 7786 4375
Will Slack

Parkgreen Communications
Justine Howarth/Ana Ribeiro + 44 (0) 20 7493 3713



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