Placing and Broker Appointed

Mercator Gold PLC
14 February 2005


                            £1.25 MILLION PLACEMENT
                          APPOINTMENT OF JOINT BROKER

LONDON - 14 February 2005 - Mercator Gold plc ('AIM-MCR; MCRW') announces that
it has placed 15,625,000 new ordinary shares of 1p each ('the New Shares') at 8p
per share to institutional clients of Ocean Equities Ltd and Phillip Securities
(UK) Ltd. The New Shares will rank pari passu with the existing ordinary shares
of 1p each, and application will be made to the London Stock Exchange for the
New Shares to be admitted to trading on AIM.

The placement will raise gross proceeds of £1,250,000 and be used to fund
drilling at the Company's Meekatharra gold properties in Western Australia and
for general working capital.

Mercator also announces that it has appointed Ocean Equities Ltd as joint broker
to the Company.

For further information, please contact:

Mercator Gold plc
Patrick Harford, Managing Director            Tel: [phone]
Terry Strapp, Chairman                        Tel : [phone]

Beaumont Cornish Limited
Rod Venables / Roland Cornish                 Tel: [phone]

Ocean Equities Ltd
Guy Wilkes                                    Tel: [phone]

Phillip Securities UK Limited
Nick Bealer                                   Tel: [phone]

Parkgreen Communications
Justine Howarth / Ana Ribeiro                 Tel: [phone]

Note to editors

Mercator Gold plc ('AIM-MCR; MCRW'), which joined AIM on 8 October 2004, has a
joint venture agreement with St Barbara Mines Limited ('the Annean Joint
Venture') to explore for economic gold resources in the Annean Joint Venture
area in the Meekatharra region of Western Australia.

Under the terms of the Annean Joint Venture, Mercator has the right to earn a
70% interest in the Meekatharra properties by spending AUD$8 million (approx.
GBP£3.1 million) on exploration.

Mercator management has an exploration target of 2,000,000 ounces of gold
contained within four resources, each of at least 500,000 ounces within the
Annean Joint Venture area.

The company has reported initial high-grade drilling results from the first two
target areas, Bluebird and Surprise.



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