Drilling Results and Update

Mercator Gold PLC
14 October 2005



14th October 2005


                     -Drilling results and future targets-
                         ('Mercator' or 'the company')



LONDON - Mercator Gold plc (AIM: MCR/MCRW) announces new drilling results and
further planned drill programmes for the coming year.  These results complement
the recently announced resource statement of 690,100 ounces at Meekatharra.



Highlights - New Drilling Results:

•  At Great Northern Highway our drilling intersected high-grade
   mineralisation with the following results:
o  2m @ 18.5 g/t,
o  2m @ 13 g/t
o  4m @ 5.5 g/t,

confirming this area as a high-grade exploration target.

•  The company has confirmed continuity of mineralisation from Bluebird to
   South Junction. Drill results include 2m @ 14 g/t, 3m @ 1.4 g/t and 2m @ 
   1.4 g/t, each confirming lode positions.
•  Regional exploration results include
o  5m @ 13 g/t and 1m @ 10 g/t at Hawk Hill,
o  2m @ 6.7 g/t and 2m @ 5.8 g/t at Lukes Junction,
o  2m @ 4.6 g/t at Stakewell.



The Company's objectives are to achieve the following:

•  Add a further 500,000 to 1 million resource ounces to the existing
   inventory of 690,100 ounces during 2006.
•  Commence gold production at Meekatharra during 2007.





Statement by the Managing Director - Patrick Harford: 'The recent resource
definition at Bluebird is only part of a growing story. The continuity of
mineralisation through to South Junction is allowing us to connect up all the
dots with the very real possibility of a big pit. I am very excited by the fact
that three out of four drill holes at Great Northern Highway have intersected
high grade mineralisation in what we believe to be related positions and which
is in an area very close to Bluebird.'




Flagship Projects Identified

Following a review of historic data and the company's drilling results; Mercator
has determined three flagship projects for the coming year and a number of other
projects on which it will continue exploration. The flagship projects are the 
'Bluebird Big Pit project', 'GNH High-Grade project' and the 'Meekatharra North
Oxide Ore project'.



Bluebird Big Pit project: the company recently announced 5.2 Mt @ 1.9 g/t for
326,000 ounces gold, including 1.7 Mt @ 4.5 g/t for 214,000 ounces. These
resources are within five lodes below and immediately adjacent to the Bluebird
pit. Drilling data from Bluebird North and South Junction Pits (250m south of
Bluebird) show multiple parallel lodes not already included in the resource and
significant exploration potential between each of the pits as well as the
eastern and western pit walls. Exploration will focus on developing these
resources to be incorporated in an enlarged pit, encompassing Bluebird North,
Bluebird and South Junction. Recent exploratory drilling at South Junction
includes results of 2m @ 14 g/t, 3m @ 1.4 g/t and 2m @ 1.4 g/t, each confirming
lode positions deduced from historic data and continuity in mineralisation.
Bluebird is less than 1.5km trucking distance from the Bluebird mill.



GNH High-Grade project: historically some of the highest gold grades have come
from the Great Northern Highway pit. Data review and validation, SpaDiSTM
analyses, geology mapping and reconnaissance drilling have been completed. Three
holes were drilled into widely separated targets testing down-plunge extensions
to mineralisation demonstrated in historic data. Results include 2m @ 18.5 g/t
and 2m @ 13 g/t (referred to in the Annual Report), and new result 4m @ 5.5 g/t.
These Great Northern Highway targets will be drilled in the coming months. The
focus of exploration is on high-grade lode systems that may be mined underground
with access from within the open pit. GNH is less than 1.5 km trucking distance
to the Bluebird mill.



Meekatharra North Oxide Ore project: the company has identified two zones of
gold mineralisation, Maid Marion and Nottingham. Results previously released
include 15m @ 1.6 g/t, 6m @ 2.2 g/t, 9m @ 1.4 g/t and 2m @ 11g/t. Mineralisation
is from surface in deeply weathered material and the company's drilling
demonstrates vertical and lateral continuity. Mineralisation at Meekatharra
North is less than 30km trucking distance to the Bluebird mill. The company will
commence drilling to identify large open-pit resources with grades between 2g/t
and 3 g/t.



Additional resource drilling: In addition to the flagship projects, the company
will conduct additional resource drilling at Surprise.  At Surprise the company
recently completed a resource evaluation with 141,000 ounces. The company has
drilled two holes with a best result of 2m @ 5.5 g/t from 198m down-hole and has
defined the extent of mineralisation at Surprise. The company will upgrade the
Surprise resource to indicated category, and at the same time better define the
high-grade zones in preparation for a mining feasibility study.



Regional exploration: throughout the tenement package the company will continue
to identify targets that may yield resources in 2007. Hawk Hill lies immediately
south of both Meekatharra township and the abandoned Magazine pit. Recent
drilling has results of 5m @ 13 g/t and 1m @ 10 g/t. The best gold intersections
(including 6m @ 11.7 g/t and 15m @ 1.6 g/t in historic data) are at relatively
shallow depths (<70m) in highly weathered and oxidized material indicating a
potential open pit resource. Lukes Junction located 11km north of the Bluebird
mill and gold processing plant, has an indicated resource of 201,000 tonnes @
1.8 g/t for 11,632 ounces gold. The company targeted a possible SE extension to
the mineralisation with results that include 2m @ 6.7 g/t and 2m @ 5.8 g/t. At
Stakewell the company's reconnaissance RC drilling achieved numerous 1 to 3 g/t
intervals, with a best result of 2m @ 4.6 g/t. Drilling at Cassia failed to
identify gold minerlisation.



A complete list of recent drilling results is posted on the company's website.
www.mercatorgold.com







                                    - Ends-


For further information please contact:


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


Dr Julian Vearncombe                             Tel: [phone]
Email: [e-mail]
www.mercatorgold.com


Beaumont Cornish Limited
Roland Cornish                                   Tel:  [phone]

King & Shaxson Capital Ltd
Nick Bealer                                      Tel:  [phone]


Ocean Equities Ltd
Will Slack                                       Tel:  +44 (0)  20 7786 4375


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



Mercator operates a continuous disclosure policy with respect to exploration
results. Company news releases are based on technical information approved by
the Company's Exploration Director, Julian Vearncombe BSc (Hons), PhD, FGS,
RPGeo, FAIG.





Notes 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 70%
interest in the Meekatharra properties by spending AUD$8 million (approx GBP3.1
million) on exploration. Mercator recently announced that it has spent the first
AUD$3 million, earned a 45% interest and has elected to proceed towards the
second step of earning 51% which it expects to complete in calendar 2005.



SpaDiSTM is a software programme developed by Vearncombe & Associates Pty Ltd
that uses fractal technologies, including autocorrelation, to generate
high-grade targets from historic exploration data. Mercator Gold has a
contractual arrangement for the on-going use of SpaDiSTM.



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



In 2005 within eleven months of listing, the company identified resources of 2
million tonnes @ 4.4 g/t for a total of 282,000 ounces, and another 185,000
ounces of lower grade resources. The joint venture resource inventory stands at
a total of 690,100 ounces.




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