Issue of Shares

Mercator Gold PLC
03 April 2006




FOR IMMEDIATE RELEASE                                              3 April 2006



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


                                ISSUE OF SHARES



The Company announces that pursuant to the terms of the Convertible Loan Notes
with a nominal value of £1,000,000 issued, under a placing, on 14 December 2005
(the 'Convertible Loan Notes'), four holders of the Convertible Loan Notes have
elected to receive ordinary shares of 10p each in the Company (the 'Shares')
instead of a cash payment of interest. The Company will issue 26,365 Shares at
60p each, which will result in a cash saving of £15,819.


Application has been made for the Shares, which will rank pari passu with all
existing ordinary shares, to be admitted to trading on AIM.






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