Placing of Shares

Mercator Gold PLC
22 March 2007



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, 
CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR 
JAPAN


22 March 2007


                               Mercator Gold plc


Placing of 6,915,000 ordinary shares at 65p per ordinary share with institutions
                     to raise approximately £4.495 million.


LONDON: 22 March 2007, Mercator Gold plc ('Mercator' or the 'Company') (MCR.L)
announces the placing (the 'Placing') of up to 6,915,000 new ordinary shares of
10p each ('Ordinary Shares') at a price of 65 pence per share to raise
£4,494,750 million before expenses.

Cenkos Securities Limited and Ocean Equities Limited acted for the Company in
the Placing of the new Ordinary Shares with institutional investors, which are
conditional upon, inter alia, admission of the new Ordinary Shares to trading on
AIM. Application has been made for the admission of the new Ordinary Shares to
trading and it is expected that admission will occur and dealings will commence
on AIM on 23 March 2007. The new Ordinary Shares will rank pari passu in all
respects with the existing Ordinary Shares currently traded on AIM. Following
admission there will be 60,595,144 Ordinary Shares in issue.

Mercator is preparing to start mining its Meekatharra tenements.  The first
stage will be the mining of the Surprise deposit as an open pit mine with
production scheduled to commence by July 2007.  Surprise has an ore reserve in
the JORC probable category of 75,000 ounces of gold which will be mined over a
seven month period.

The second stage will be the development and mining of the
Prohibition-Vivien-Consols ('PVC') mining area, which contains 380,000 ounces of
JORC indicated resources and is planned to be developed as an underground mine.
The Company continues to evaluate the future production potential of the nearby
Maid Marion and Bluebird areas.

Funds raised from the Placing will allow Mercator to accelerate the development
of the PVC mining area and provide for a continuous cash flow as mining switches
from Surprise to the PVC mining areas during the first quarter of 2008.

Patrick Harford, Managing Director of Mercator Gold, commented:  'We are very
encouraged by the continued support of our existing shareholders and we welcome
our new investors in this Placing, which provides the Company with the financial
flexibility to sign contracts for, and commence, the development of
Prohibition-Vivien-Consols.  This is an exciting period for Mercator in its
transition from an exploration-focused company to a fully fledged and cash
generative gold producer, and, now that our finances are secured we are looking
forward to the future with a great deal of confidence.'


For further information contact:


Mercator Gold plc

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


Email: [e-mail]
Website: www.mercatorgold.com


Bankside Consultants Ltd               Tel: [phone]

Simon Rothschild   
Keith Irons
Oliver Winters


AIM: MCR



Cenkos Securities Limited ('Cenkos'), which is authorised and regulated in the
United Kingdom by The Financial Services Authority, is acting exclusively for
the Company as nominated adviser, joint broker and placing agent in connection
with the Placing. Cenkos is not acting for any other person and will not be
responsible to anyone other than the Company for providing the protections
afforded to clients of Cenkos or for advising any other person in relation to
the Placing. Ocean Equities Limited ('Ocean'), which is authorised and regulated
in the United Kingdom by The Financial Services Authority, is acting exclusively
for the Company as joint broker and placing agent in connection with the
Placing. Ocean is not acting for any other person and will not be responsible to
anyone other than the Company for providing the protections afforded to clients
of Ocean or for advising any other person in relation to the Placing. The new
Ordinary Shares have not been, nor will be, registered under the United States
Securities Act of 1933 (as amended) or under the securities legislation of any
state of the United States of America or of any province or territory of Canada,
Australia, Japan, the Republic of Ireland or the Republic of South Africa. There
will be no public offering of the new Ordinary Shares in the United States.
Subject to certain exceptions, the new Ordinary Shares may not be directly or
indirectly offered, sold, transferred, taken up or delivered in, into or from
the United States, Canada, Australia, Japan, the Republic of Ireland or the
Republic of South Africa or their respective territories or possessions. This
announcement does not constitute an offer to sell or issue or the solicitation
of an offer to buy new Ordinary Shares in any jurisdiction in which such offer
or solicitation is unlawful. Accordingly, copies of this announcement are not
being and must not be mailed or otherwise distributed or sent in or into or from
the United States, Canada, Australia, Japan, the Republic of Ireland or the
Republic of South Africa and any person receiving this announcement (including
custodians, nominees and trustees) must not distribute or send it in or into or
from the United States, Canada, Australia, Japan, the Republic of Ireland or the
Republic of South Africa. This announcement has not been approved by Cenkos or
Ocean for the purposes of section 21 of the Financial Services and Markets Act
2000. This announcement has not been examined or approved by The Financial
Services Authority or the London Stock Exchange or any other regulatory
authority.




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