Preliminary Drilling Results

Mercator Gold PLC
20 April 2006

For Immediate Release


20 April 2006



                               Mercator Gold plc
                       ('Mercator Gold' or the 'Company')
                          Preliminary drilling results



Mercator Gold is pleased to announce preliminary results from drilling at
Prohibition in the Paddy's Flat area at Meekatharra.



Drill hole 06PRRD001 intersected 69 metres @ 3.41gm/ton from 233 metres, 46
metres @ 1.77gm/ton from 300 metres, and 28 metres @ 6.57gm/ton from 401 metres.



The hole was collared in the haul road, 70m below surface, at the open cut at
Prohibition. The hole was drilled parallel to the host rock type, a ferruginous
chert but across at a high-angle to fault structures. The host ferruginous chert
is 30 to 50m wide near the surface, with an average width of approximately 35m,
and is offset by cross-faults. The hole was designed to test results from 
SpaDiS(TM) analysis that suggested that the gold showed far greater down-dip
continuity than previously suggested:



In hole 06PRRD001 significant geologically defined intersects occur as listed
below:


Interval from-to m          Thickness and gold grade       Depth from surface
27 to 34                    7m @ 6.54 g/t                  94m
171 to 240                  69m @ 3.41 g/t                 233m
252 to 254                  2m @ 2.14 g/t                  271m
266 to 312                  46m @ 1.77 g/t                 300m
319 to 321                  2m @ 7.13 g/t                  326m
402 to 430                  28m @ 6.57 g/t                 401m



The Company emphasises that these results are preliminary. Assays from the drill
collar to downhole-depth 120m are by fire assay and below that aqua regia
methods. A more detailed release will be made shortly to confirm the assay
results and detail geological and economic significance. At this stage the
results expand the Prohibition mineralisation, currently a resource of 2.3Mt @
3.6 g/t for 270,000 ounces. This result shows that mineralisation previously
modelled in the resource as limited to narrow cross faults, mostly less than 10m
wide, extend between faults down the host ferruginous chert in
quartz-pyrite-arsenopyrite veins, confirming the SpaDiS(TM) analysis.



The Managing Director, Mr Patrick Harford said: 'A year ago our independent
consultant, Prof Rob Kerrich, suggested that we had the potential at Meekatharra
to substantially upgrade resources between and particularly below known ore
bodies.  This new drill result based on SpaDiS(TM) analysis opens a new chapter
in the Company's development.  Our goal of sustainable and profitable production
is within sight.  The Prohibition ore body has the potential to both grow
significantly and to provide feed stock at a consistent +3gm/ton Au to our
nearby mill at Yaloginda.'


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