Gold production to start

Mercator Gold PLC
19 September 2007




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


                   GOLD PRODUCTION TO COMMENCE AT MEEKATHARRA

               INCREASE IN PROBABLE ORE RESERVES TO 504,000 OUNCES


                                   HIGHLIGHTS


•                     Newly commissioned Meekatharra plant currently processing
ore at up to 150 tonnes per hour (tph).

•                     First commercial gold pour within the next ten days with a
target of 120,000oz of production in the first 12 months of operations.

•                     17% increase in Probable Ore Reserves to 504,000oz
(previously 432,000oz).

•                     Encouraging results from recent drilling at the newly
defined Euro Project with best results including 1m @ 94.3g/t, 3m @ 23.8g/t and
10m @ 5.0g/t.

•                     Highly experienced international exploration geologist,
Mark Csar, appointed as Exploration Manager.


LONDON: 19 September 2007 - Mercator Gold PLC (AIM: MCR) is pleased to announce
that commissioning of the recently refurbished three million tonne per annum
(mtpa) treatment plant at its 100%-owned Meekatharra Gold Operations in Western
Australia is nearing completion, with full commercial production scheduled to
commence within the next ten days.



The carbon-in-leach processing facility - located 15km south of Meekatharra,
Western Australia - is nearing a throughput level of 150 tonnes per hour (tph)
in preparation for a planned first gold pour this week.



Mercator expects to produce approximately 120,000 ounces of gold in the first 12
months of operations. The majority of initial production will come from the
Company's Surprise Open Pit access ramp, which comprises predominantly low grade
ore, whilst higher grades are expected once the open pit reaches the base of
previous mining.



The initial Surprise mining operation is based on a Probable mining reserve of
827,000 tonnes at 2.35 grams per tonne (g/t) for 63,000 ounces. After Surprise,
production will shift towards the Bluebird Pit, where a much larger reserve of
1.7 million tonnes at 2.44 g/t for 133,000 ounces has been identified. The
combined ore from Surprise and Bluebird is expected to meet the first 18-20
months of anticipated production with the focus then turning towards the
Company's underground mines.



The underground mines at Meekatharra include the Prohibition, Vivian-Consols and
Fatts-Mudlode ore bodies, which are part of the Paddy's Flat Mining Centre -
which has produced approximately two million ounces of gold to date.





Increase in Gold Reserves



Mercator is pleased to report a 17% increase in its Probable Ore Reserves to
504,000 ounces (from 432,000 ounces previously) following the completion of
positive metallurgical testwork programs.



The increase primarily reflects the conversion of additional Indicated Resources
to reserves at the Fatts and Mudlode ore bodies. Metallurgical testwork
conducted by Perth-based metallurgical testwork company AMMTEC Ltd has confirmed
that suitable gold recoveries can be achieved from both the Fatts and Mudlode
ore, with a higher gravity gold component achieved from the Mudlode ore.



The Company's Mining Engineering Consultant, Red Rock Engineering, has
successfully completed the preliminary mine design and costing evaluation for
development of both the Fatts and Mudlode deposits and has updated the
previously completed underground mine design for the Vivian-Consols and
Fatts-Mudlode ore zones. The proposed development of dual access declines will
enable mining to proceed both to the north and south over a strike distance of
some 700 metres, while at the same time improving the ventilation system and
providing a second means of egress.





 Probable Ore Reserves - Meekatharra Gold Project


                                          Tonnes           Grade (g/t)          Oz
Open Pit
Bluebird                                 1,700,000           2.44g/t         133,000
Surprise                                  827,000            2.35g/t          63,000
Sub Total                                2,527,000           2.41g/t         196,000
Underground
Prohibition                              1,372,000           4.06g/t         179,000
Vivians / Consols                         256,000           10.13g/t          83,000
Fatts / Mudlode                           362,000            4.00g/t          46,000
Sub Total                                1,991,000           4.83g/t         308,000
Total Probable reserves                                                      504,000




Significant Exploration Results from Euro Project



Mercator recently completed a four (4) hole diamond drilling program in an area
to the East of known mineralisation which had received little exploration
attention in recent years. The Company has named the area Project Euro and is
pleased to report that it has received very encouraging exploration results to
date including near-surface intersections of 1m @ 94.3g/t, 3m @ 23.8g/t and 10m
@ 5.0g/t  (see table below for further results.)



           Table: Main intersections from the diamond holes drilled at Euro 1


       Hole ID           From         To       Width (m)    AU (ppm)
07EURD011                 79          80           1           6.3
07EURD011                 89          90           1           1.2
07EURD011                 96          102          6           3.0
07EURD011                 116         126          10          5.0
07EURD011                 130         131          1           1.6
07EURD011                 136         137          1           2.9
07EURD011                 187         188          1           2.0
07EURD011                 190         191          1           1.4
07EURD011                 217         218          1           2.3
07EURD011                 221         227          6           5.1
07EURD019A                98          99           1           1.2
07EURD019A                115         116          1           1.1
07EURD019A                117         121          4           3.1
07EURD019A                127         128          1           3.3
07EURD019A                144         148          4           2.3
07EURD019A                159         160          1           2.7
07EURD019A                182         183          1           1.4
07EURD020                 38          39           1           8.6
07EURD020                 73          74           1           2.5
07EURD020                 76          77           1           1.1
07EURD020                 82          83           1           2.3
07EURD020                 95          96           1           7.0
07EURD020                 103         106          3           1.7
07EURD020                 110         115          5           3.8
07EURD020                 120         126          6           1.6
07EURD020                 129         131          2           1.3
07EURD020                 133         139          6           2.2
07EURD020                 145         147          2           3.1
07EURD020                 150         152          2           1.8
07EURD020                 155         156          1           8.0
07EURD020                 159         160          1           1.1
07EURD020                 168         171          3           3.2
07EURD020                 176         177          1           1.0
07EURD020                 187         188          1           1.1
07EURD021                 65          70           5           1.7
07EURD021                 79          80           1          94.3
07EURD021                 84          85           1           2.1
07EURD021                 98          100          2           1.3
07EURD021                 102         105          3          23.8
07EURD021                 106         107          1           1.4
07EURD021                 109         110          1           1.5
07EURD021                 127         129          2           2.6
07EURD021                 132         133          1           2.0



While the results to date have resulted in a significant reinterpretation of the
orientation of geological structures hosting the mineralisation at Project Euro,
it is important to note that the aim of initial drilling was to prove up the
structural formation of the new zone, rather than to provide a detailed
assessment of the zone itself.  Furthermore, the orientation of the drilling was
such that depths indicated in the table of results above are not representative
of the actual depth of the intersections themselves due to the drilling angle
utilised.



Previous drilling was based on an interpretation of typical North-South
structures, requiring drilling to be oriented in an East-to-West direction or
vice versa. The diamond core drilling results received to date suggest that the
structures are in fact oriented in an East-West direction and dip to the south.



Remodelling the legacy data with the revised structural controls has identified
a potential ore-bearing zone some 500 metres long, 300 metres wide and 120
metres deep.



The Company plans to commence a diamond and Reverse Circulation (RC) drilling
program to delineate a JORC compliant resource at the Euro Project in the short
term. The delineation of additional reserves in this area, because of its
strategic location, could have a significant impact on the Company's future
operational strategies.





Appointment of Exploration Manager & Summary



With its imminent move into gold production, Mercator is also pleased to
announce the appointment of highly experienced international exploration
geologist, Mr Mark Csar, to the role of Exploration Manager. Mr Csar brings a
wealth of exploration and geological experience in a range of Western
Australian-based gold and nickel operations. Prior to his appointment, Mr Csar
was Exploration Manager - USA for the Iluka group.



Commenting on Mercator's progress to date, the Company's Chairman, Mr Terry
Strapp, said: 'The imminent gold pour represented a significant milestone for
the Company as it entered the ranks of Australian gold producers.'



'This month marks our official transition into production and is a testament to
the hard work and commitment of everyone involved with the Company,' Mr Strapp
said. 'We are now positioned for an exciting period of growth, building on the
strong production base established at Meekatharra.'



Mercator's Managing Director, Mr Patrick Harford, said: 'We have recently
completed the commissioning of the plant and, with the commencement of
commercial gold production only days away, Mercator is set to join the ranks of
international gold producers at an exciting time for the gold sector,' he added.
'In addition to our move into commercial production, the increase in probable
reserves announced today and the promising new gold discoveries at the nearby
Euro project highlight the potential for the Company to build on its strong
production base and significantly expand its gold operations and reserve
position.'




'I would also like to take this opportunity to welcome Mark Csar to the Company,
' Mr Harford added. 'The appointment of such a highly regarded and skilled
exploration manager further cements the Company's position as a significant
player in Australia's world-class gold mining industry.





Competent Persons Report - Consent for release



The information in this report is based on information compiled by Alan Coles
and Denis Geldard.



Alan Coles and Denis Geldard are full time employees of Mercator Gold Australia
Pty Ltd and are Members of the Australasian Institute of Mining and Metallurgy.



Alan Coles and Denis Geldard have sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to the
activity which they are undertaking to qualify as Competent Persons as defined
in the 2004 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'.



Alan Coles and Denis Geldard consent to the inclusion in the report of the
matters based on this information in the form and context in which it appears.





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


Released by:


Bankside Consultants Ltd                             Tel: [phone]
Simon Rothschild
Keith Irons
Oliver Winters



AIM:  MCR

PR in Australia
Read Corporate
Nicholas Read /Jason Cunningham                      Tel: [phone]




Mercator Gold - Background





Mercator Gold PLC is a UK gold exploration company listed on the AIM of the
London Stock Exchange currently making the transition from exploration to
production via its interest in a 1,932km(2) tenement package in Meekatharra,
Western Australia. The Company originally raised £25 million (A$62 million) on
AIM to underpin its growth objectives in the gold sector and fast track a
production/development strategy.



The project area is extensively mineralised and Mercator has undertaken an
aggressive exploration programme to define the project's resource potential.
Mercator acquired the project for just A$18 million and has completed a major
upgrade of the 3mtpa treatment facility and existing mine infrastructure.




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