Final Results

Mercator Gold PLC
03 October 2005



              Audited Results for the period ending 30th June 2005


LONDON - 3rd October 2005 - The Directors of Mercator Gold plc (AIM: MCR), the
UK based gold exploration company, announces final results for the period ending
30th June 2005:


Highlights
     
•    Admission to AIM on 8 October 2004 at 6 pence

•    Completed first resource assessments at Bluebird and Surprise
     outlining 467,000 ounces

•    Total company resources to date 690,100 ounces

•    Additional fund raising of £1.25 million at 8 pence

•    SpaDis technology successfully applied to historical data


Post 30 June 2005

•    Early exercise of warrants raised £1 million



For more information
                                                   www.mercatorgold.com

Mercator Gold plc

Patrick Harford, Managing Director                 Tel:  [phone]
Terry Strapp, Chairman                             Tel : [phone]
Michael de Villiers, Finance Director              Tel:  [phone]
Julian Vearncombe, Exploration Director            Tel:  +61  (0) 8 9316 9400

Beaumont Cornish Limited
Roland Cornish / Felicity Geidt                    Tel:  [phone]

Ocean Equities Limited                             Tel: [phone]
Will Slack

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

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



CHAIRMAN'S STATEMENT

It is with pleasure that I report on Mercator Gold plc's inaugural year as an
AIM-listed company. Mercator was formed to take advantage of a substantial
business opportunity (the Annean joint venture) in the gold-rich Meekatharra
region of Western Australia. The company has completed its first resource
assessments at Bluebird and Surprise where 467,000 ounces have been outlined. I
am pleased to inform you that residual low-grade ounces which our exploration
team used as pathfinders have now been substantially upgraded. Total resources
of the company stand at 690,100 ounces.

Mercator Gold plc aims to acquire quality ground holdings each of substantial
size with potential to host more than two million ounces of gold. The Annean
joint venture covers an exciting greenstone region that has historically
produced more than 3.5 million ounces of gold, about half of which was produced
from within the joint venture tenements, from relatively shallow depths.

The company believes the success in our first year and its anticipated ongoing
success stem from the conjunction of geological excellence, focus and
commitment, maximising the value of the historic data base and the use of the
SpaDIS(TM) technology developed by Vearncombe & Associates Pty Ltd. Target
generation is followed by carefully planned drilling programs, results from
which have already lead to the definition of new ore resources. Throughout, the
company is geology-focused.

Exploration activities to date have been very successful. In the first eleven
months from listing, drill programmes totalling 31,000 metres have defined new
and exciting resources at Bluebird and Surprise. These resources are 2 million
tonnes@4.4 g/t Au for a total of 282,000 ounces. In addition, the company
identified another 185,000 ounces of lower grade gold resources, surrounding and
adjacent to the high-grade resources, at grades ranging 0.7 to 2 g/t. These
finds were made at a cost of less than A$10 (US$7, £4.20) per ounce. The new
resources are located within 1.5 kilometres of a major 3 million tonne per annum
plant owned by our joint venture partner St. Barbara Mines Ltd. In terms of the
Annean joint venture agreement the company has earned a 45% stake in the
Meekatharra properties. This will increase to 51% in calendar 2005.

The data verification and analysis programme has highlighted the area
immediately south of Bluebird, at South Junction, and the Great Northern Highway
area (also known as Bluebird East) as the more immediate targets for resource
enlargement. In addition to the new resources, exploration continues at
Meekatharra North (including Maid Marion and Nottingham with 7km of strike
length), Hawk Hill and Stakewell, all of which are giving positive results at
the time of writing.

In the coming year the company intends to:

•    upgrade and enlarge resources

•    assess mining suitability at Bluebird and Surprise

•    focus exploration on the Great Northern Highway and South Junction pits
     
•    add to initial drilling successes at Stakewell and Hawk Hill

•    aggressively explore and define new and additional open pit resources at
     Meekatharra North

•    use SpaDIS(TM) technology to identify targets and define resources

•    continue the process of data validation, target generation and discovery in
     the Meekatharra area

•    review and assess new projects.

Exploration activity and results are regularly reviewed by our independent
geological director. The board of the company meets regularly by
tele-conference, avoiding the need for expensive air travel. The company has
fully functioning Audit and Remuneration committees. Executive and
administrative staff, and their performance are carefully monitored. The company
is fully cognizant of the corporate governance codes in the UK and Australia to
which it strictly adheres.

We look forward to the next year's activities with a sense of keen anticipation.


Terrence Strapp
Chairman



CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the period from 22 March 2004 to 30 June 2005


                                                             £
Administrative expenses                               (926,654)

Operating loss                                        (926,654)
Net interest receivable & similar items                 59,335

Loss on ordinary activities before taxation           (867,319)
Taxation                                                     -

Loss on ordinary activities after taxation            (867,319)

Loss per share                                           (2.03)p

All amounts relate to continuing activities

The Group has no recognised gains or losses other than the loss of £867,319 for
the period




CONSOLIDATED BALANCE SHEET

At 30 June 2005


                                                                2005
                                                                   £
                                                         
Fixed assets

Intangible                                                 1,453,885
Tangible                                                      65,934

Total fixed assets                                         1,519,819

Current assets                    
Debtors                                                      194,972
Cash at bank and in hand                                     954,467

Total current assets                                       1,149,439

Creditors - amounts falling due within one year              572,611

Net current assets                                           576,828

Total assets less current liabilities                      2,096,647


Capital and reserves
Called-up share capital                                      871,198
Share premium account                                      2,492,599
Merger Reserve                                              (399,831)
Profit and loss account                                     (867,319)

Equity shareholders' funds                                 2,096,647



COMPANY BALANCE SHEET
At 30 June 2005


                                                               2005
                                                                  £

Tangible                                                      5,622
Investment                                                  450,000
Long term loan - subsidiary                               1,720,442

Total fixed assets                                        2,176,064

Current assets
Debtors                                                      60,539
Cash at bank and in hand                                    681,246

Total current assets                                        741,785
Creditors - amounts falling due within one year             125,216

Net current assets                                          616,569

Total assets less current liabilities                     2,792,633

Capital and reserves
Called-up share capital                                     871,198
Share premium account                                     2,492,599
Profit and loss account                                    (571,164)

Equity shareholders' funds                                2,792,633




CONSOLIDATED CASH FLOW STATEMENT
For the period from 22 March 2004 to 30 June 2005

                                                               2005
                                                                  £

Net cash outflow from operating activities                 (526,834)
Returns on investments and servicing of finance              29,718
Capital expenditure and financial investment             (1,541,831)

Net cash outflow before management of liquid 
resources and financing:                                 (2,038,947)
Management of liquid resources                             (647,000)
Financing:
Issue of ordinary shares                                  2,963,797

Increase in cash in the period                              277,850

Reconciliation of net cash flow to movement 
in net funds
Increase in cash in the period                              277,850

Change in net funds resulting from cash flows               277,850
Exchange differences                                         29,617
Movement in short term deposits                             647,000

Movement in net funds in the period                         954,467
Net funds at 22 March 2004                                        -

Net funds at 30 June 2005                                   954,467



SHAREHOLDERS' FUNDS
For the period from 22 March 2004 to 30 June 2005

                                                               2005
                                                                  £

Loss for the period                                        (867,319)
Merger reserve arising on consolidation                    (399,831)
New share capital issued                                  3,363,797

Net addition to shareholders' funds                       2,096,647
Opening shareholders' funds                                       -

Closing shareholders' funds                               2,096,647



Notes

The above financial information does not constitute statutory accounts within
the meaning of section 240 of the Companies Act 1985.  The financial information
has been extracted from the Group's Annual Report for the period ended 30 June
2005 on which the auditors have given an unqualified opinion.

The Annual Report will be posted to shareholders on 3rd October 2005 and the
Reconvened Annual General meeting will be held on 26 October 2005.  Statutory
accounts for the period will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.


Accounting policies

Accounting convention and basis of preparation of financial statements and going
concern

The financial statements have been prepared under the historical cost convention
and in accordance with applicable accounting standards. The principal accounting
policies of the Group are set out below.

These financial statements are prepared on a going concern basis,
notwithstanding the loss for the period to 30 June 2005 of £867,319, which the
Directors believe to be appropriate for the following reasons:

In common with many exploration companies, the Company raises finance for its
exploration and appraisal activities in discrete tranches to finance its
activities for limited periods only. Further funding is raised as and when
required, the most recent being in September 2005.

The Directors are of the opinion that the Company will need to raise additional
financial resources to enable the Group to undertake an optimal programme of
exploration and appraisal activity over the next twelve months. Accordingly, the
Directors intend to raise further funds during the course of the next twelve
months. Whilst the Directors are confident that the Group will be able to secure
additional funding to enable it to continue to meet its debts as they fall due
and to undertake the programme described above for at least the next twelve
months from the date of approval of these financial statements, there can be no
guarantee that this will be the case. The financial statements do not include
any adjustments, particularly in respect of fixed assets, investments, loans and
provisions for winding up which would be necessary if the Company and Group
ceased to be a going concern.

Basis of consolidation

The Group accounts consolidate the accounts of Mercator Gold plc and its
subsidiary undertakings. The acquisition by the Company of Mercator Gold
Australia Pty Ltd in August 2004 was accounted for in accordance with the
principals of Merger accounting set out in Financial Reporting Standards 6 on '
acquisitions and mergers'. Accordingly, the consolidated financial statements
are presented as if Mercator Gold Australia Pty Ltd has been controlled by the
Company throughout the period from its incorporation on 19 January 2004.

Exploration and development costs

All costs associated with mineral exploration and investments are capitalised on
a project-by-project basis, pending determination of the feasibility of the
project. Costs incurred include appropriate technical and administrative
expenses but not general overheads. If an exploration project is successful, the
related expenditures will be transferred to mining assets and amortised over the
estimated life of the commercial ore reserves on a unit of production basis.
Where a licence is relinquished or a project abandoned, the related costs are
written off. Where the Group maintains an interest in a project, but the value
of the project is considered to be impaired, a provision against the relevant
capitalised costs will be raised.

The recoverability of all exploration and development costs is dependent upon
the discovery of economically recoverable reserves, the ability of the Company
to obtain necessary financing to complete the development of reserves and future
profitable production or proceeds from the disposition thereof.


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