Shareholding Notification

Mercator Gold PLC
12 October 2004


FOR IMMEDIATE RELEASE                         12 OCTOBER 2004



                MERCATOR GOLD PLC ('MERCATOR' or the 'Company')

                 SHAREHOLDING and WARRANTHOLDING NOTIFICATIONS

On 11 October 2004, City Equities Limited informed the Company that it had
(acting as Principal) sold its entire holding of 4,000,000 Ordinary Shares in
the Company (representing 7.77 per cent of the Company's issued Ordinary Share
capital) together with its entire holding of warrants (entitling it to subscribe
for up to 4,000,000 new Ordinary Shares at 8 p per share) to certain of its
private customers. As a result of these sales City Equities Limited no longer
has an interest in the issued Ordinary Share capital of the Company and the
Company's warrants.





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