Resource Update

Mercator Gold PLC
18 September 2006


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

                     Indicated and Inferred Gold Resources
                     at Bluebird Increase to 546,000 ounces



London 18 September 2006 - Mercator Gold PLC (AIM:MCR) is pleased to announce a
significant increase in gold resources at Bluebird.


•  Exploration drilling at Bluebird within the Yaloginda mine area has
established indicated and inferred gold resources of 10.1Mt @ 1.7g/t for 546,000
ounces.

•  The Indicated Category has increased by 302,000 ounces from 2.0Mt @ 1.6g/t 
for 106,000 ounces to the new value of 7.9Mt @ 1.6g/t for 408,000 ounces.

•  The additional gold resources, calculated by Mercator Gold's independent
resource consultants, lift the total indicated and inferred gold resources of
the company to 42Mt @ 1.6g/t for 2,160,000 ounces.


Bluebird Resource

The Bluebird (including Bluebird North) deposit occurs as quartz-veins within a
high-magnesium basalt host rock in a carbonate-altered shear zone. Mercator
commissioned Cube Consulting Pty Ltd (Cube) to provide independent resource
evaluations for Bluebird.  At Bluebird the mineralisation is steeply dipping
with plus 2g/t Au high-grade zones, with surrounding and proximal low-grade
mineralisation based on a 0.4g/t cut-off.


The resource figures are summarised in the table below:


Total Bluebird Global Resource all gold within  +0.4g/t Au wireframe

          Category                      Tonnes                  Gold g/t              Metal (oz)
          Indicated                    7,939,000                  1.6                   408,000
          Inferred                     2,253,000                  1.9                   138,000
            TOTAL                     10,192,000                  1.7                   546,000



The global Indicated resource has increased by 302,000 ounces from last year's
Mercator announcement of 2.0Mt @ 1.6g/t for 106,000 ounces.


These revised resources lift the Company's holding to over 2 million ounces,
comprising Indicated Category 26.2Mt @ 1.7g/t for 1,401,000 ounces and Inferred
Category 15.8Mt @ 1.5g/t for 759,000 ounces. The Company's combined Indicated
and Inferred Resources are 42Mt @ 1.6g/t for 2,160,000 ounces.



Evaluation and feasibility

Mercator Gold is currently involved in detailed studies to determine the optimal
mining parameters and economics for the Bluebird, Surprise and Paddy's Flat
resources. These include studies on the metallurgical recovery, mining methods
and scheduling of multiple sources of ore. Generally, the Company is assessing
the potential for open cut mining above the 300 mRL (about 170m from surface)
and underground mining potential on the deeper higher grade material from all
its projects. The Company has commissioned a resource evaluation for Surprise
which is expected in October, and exploration drilling at the PVC project at
Paddy's Flat continues. Details of successful drilling at Surprise and PVC were
given in the last technical press release issued on 8 August 2006.



Managing Director, Patrick Harford, said:



'Bluebird and Surprise are important components in the development of our
strategy of sustainable profitability.  We look forward to the completion of our
studies there and the integration of these resources into our overall production
scheduling.'



Consent for release

Julian Vearncombe BSc (Hons), PhD, FGS, RPGeo, FAIG is a director of the Company
and consents to the inclusion of the exploration information in the form and
context in which it appears here. Julian Vearncombe is a Competent Person for
the reporting of these results as defined by the JORC Code 2004 Edition.



The independent evaluation was completed by Cube Consulting Pty Ltd under the
supervision of Patrick (Rick) Adams BSc, MAusIMM, MAIG, a director of Cube and
Mark Zammit BSc(Hons), GradDipBus, MAusIMM, a principal consultant geologist for
Cube. Rick Adams and Mark Zammit both have sufficient experience that is
relevant to the style of mineralisation and type of deposit under consideration
and to the activity that is undertaken to qualify as the Competent Person as
defined in the JORC Code 2004 Edition.



The revised resource statement for the Company and full details of the resource
estimates have been posted on the Company's website at www.mercatorgold.com



For further information please contact:


Mercator Gold plc

Patrick Harford, Managing Director           Tel: [phone]


Email: [e-mail]

Link to website:  www.mercatorgold.com


Parkgreen Communications

Justine Howarth / Ana Ribeiro                Tel: [phone]


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