Resource Upgrade

Mercator Gold PLC
16 April 2007



London: Monday 16 April 2007


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

                                   Highlights


  • The Company is pleased to announce interim updated resource statements
    for various projects at Meekatharra. The Company's total resource now stands
    at 2,323,900oz and is set to increase further on the completion of resource
    estimates for the Mudlode and Fatts projects.

  • The indicated resources of the Company now stand at 1,600,700oz. This
    includes a significant resource of 2.5 million tonnes @ 4g/t for 320,000oz
    at Prohibition and 405,000 tonnes at 9.3 g/t at Vivian-Consols for
    120,000oz. These resources which are in close proximity are the subject of
    mining studies and the Company expects to announce reserves for the
    Prohibition-Vivian-Consols project in the near future.

Managing Director, Patrick Harford, said: 'The Company has added substantially
both in quantity and above all in quality to its resource inventory over the
last year. With mining studies at Prohibition and Vivian-Consols nearing
completion we are very excited about moving rapidly to sustainable and
profitable production.'


RESOURCES


Mercator Gold is undertaking resource evaluations and mining optimisations for
several of its projects at Meekatharra. These projects include:


   • Prohibition
   • Vivian-Consols
   • Bluebird
   • Maid Marion
   • Ingliston


The results of the above are announced here. For each resource the Company has
placed an accompanying document on its web page to support the information
summarised here.

At Prohibition the resource at 2.0 g/t cut off is 2.5 million tonnes @ 4.0 g/t
in the Indicated Category and 160,000 tonnes @ 3.9 g/t in the Inferred Category
for a total of 341,000 ounces of gold.

Vivian-Consols, as reported here, represents a subset of the Company's purchased
resource that has been re-examined; this resource now comprises 405,600 tonnes @
9.2 g/t in the Indicated Category and 276,000 tonnes @ 7.4 g/t in the Inferred
Category for a total of 186,000 ounces. The other resources that make up
Vivian-Consols, namely Mudlode and Fatts, are currently being drilled and
re-evaluated with a new resource statement expected shortly.

Prohibition and Vivian-Consols are within 300 metres of each other. Mining
scenarios for Prohibition and Vivian-Consols (PVC) are currently under
consideration. The results of mining and scheduling studies are anticipated in
the next two months.

At Bluebird the Company has re-evaluated the existing resource. The
re-evaluation was conducted because of the Company's concerns with the
correspondence of the resource model with the drilling assay data. The revised
resource is 5.45 million tonnes @ 2.0 g/t in the Indicated Category and 1.6
million tonnes @ 2.6 g/t in the Inferred Category for a total of 488,000 ounces.
The remnant resource at Bluebird South is 2.7 million tonnes @ 1.3 g/t for
119,000 ounces in all Categories. The changes make the deposit more economic;
current desk-top studies near completion and the possibility of trial mining or
additional close-spaced drilling is being assessed.

At Maid Marion the resource is 706,000 tonnes @ 1.3 g/t in the Indicated
Category and 174,000 tonnes @ 1.2 g/t in the Inferred Category giving a total of
37,000 ounces. The Company is currently evaluating mining options at Maid
Marion. The Maid Marion resource is open to the north and south, and at depth.
Exploration drill programmes are being designed aimed at the identification of
immediate extensions to this resource and a possible repetition to the west.


The Ingliston resource is 1.3 million tonnes @ 1.1 g/t in the Indicated Category
and 100,000 tonnes @ 1.1 g/t in the Inferred Category for a total of 49,000
ounces.


Mercator Resource inventory


Since the annual report for the year ended 30 June 2006, Mercator Gold has
upgraded resources converting Inferred Category resources to Indicated Category.
The resource evaluations take the Company closer to mining with advanced mine
optimisation and scheduling studies at Prohibition, Vivian-Consols, Maid Marion
and Bluebird. These are expected to add to the Company's Probable Reserves.


Since admission to AIM in October 2004, Mercator Gold has identified and
announced gold resources at Meekatharra of more than 800,000 ounces. These are
in addition to the resources that it purchased from St Barbara Limited in
January 2006.


The resource inventory of the Company is summarised in the table below:


+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|              |Indicated |     |         |Inferred  |     |       |Total     |     |         |
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|              |    Tonnes|Grade|   Ounces|    Tonnes|Grade| Ounces|    Tonnes|Grade|   Ounces|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Yaloginda     |          |     |         |          |     |       |          |     |         |
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Bluebird      | 5,450,000|  2.0|  351,000| 1,660,000|  2.6|137,000| 7,110,000|  2.1|  488,000|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Bluebird South| 1,433,000|  1.1|   52,000| 1,346,000|  1.6| 67,500| 2,779,000|  1.3|  119,500|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Surprise*     | 3,603,000|  0.9|  109,000| 1,303,000|  0.6| 25,000| 4,906,000|  0.9|  134,000|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Sub Total     |10,486,000|  1.5|  512,000| 4,309,000|  1.7|229,500|14,795,000|  1.6|  741,500|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|              |          |     |         |          |     |       |          |     |         |
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Paddy's Flat  |          |     |         |          |     |       |          |     |         |
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Prohibition   | 2,510,000|  4.0|  320,000|   160,000|  3.9| 21,000| 2,670,000|  4.0|  341,000|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Vivian-Consols|   405,600|  9.3|  120,800|   276,100|  7.4| 65,700|   681,700|  8.5|  186,400|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Mickey Doolan |12,375,000|  1.0|  396,000| 7,119,000|  0.9|213,000|19,494,000|  1.0|  609,000|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Ingliston     | 1,329,000|  1.1|   45,500|   100,000|  1.1|  3,500| 1,429,000|  1.1|   49,000|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Golden Bar    |   379,000|  1.4|   17,000|    50,000|  1.1|  2,000|   429,000|  1.4|   19,000|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Maid Marion   |   706,000|  1.3|   30,400|   174,000|  1.2|  6,600|   880,000|  1.3|   37,000|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Sub Total     |17,704,600|  1.6|  929,700| 7,879,100|  1.2|311,800|25,583,700|  1.5|1,241,400|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|              |          |     |         |          |     |       |          |     |         |
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Reedy         |          |     |         |          |     |       |          |     |         |
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|South Emu     |   618,000|  3.4|   68,000|   100,000|  3.0| 10,000|   718,000|  3.4|   78,000|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Rand          |   891,000|  1.9|   55,000| 1,458,000|  2.7|125,000| 2,349,000|  2.4|  180,000|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Jack Ryan     |   534,000|  2.1|   36,000|   846,000|  1.7| 47,000| 1,380,000|  1.9|   83,000|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|Sub Total     | 2,043,000|  2.4|  159,000| 2,404,000|  2.4|182,000| 4,447,000|  2.4|  341,000|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|              |          |     |         |          |     |       |          |     |         |
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+
|TOTAL         |30,233,600|  1.6|1,600,700|14,592,100|  1.5|723,300|44,825,700|  1.6|2,323,900|
+--------------+----------+-----+---------+----------+-----+-------+----------+-----+---------+

Grade is in g/t. Ounces are Troy ounces. Small numeric differences may occur due
to number rounding.


* The Surprise resource is inclusive of the Company's Probable Reserves at
Surprise of 992,000 tonnes @ 2.36 g/t for 75,000 ounces. This represents a
conversion of resource ounces to reserves of 68%.


Consent for release

Julian Vearncombe BSc (Hons), PhD, FGS, RPGeo, FAIG is a director of the Company
and consents to the inclusion of the exploration information in the form and
context in which it appears here. Julian Vearncombe is a Competent Person for
the reporting of these results as defined by the JORC Code 2004 Edition.


For further information please contact:


Mercator Gold plc

Terry Strapp, Chairman                 Tel: [phone]
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



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