Mercator Gains Uranium Sector Exposure

AIM: MCR ADR: MTDGY

Mercator Gold plc (LSE:MCR)(Pink Sheets:MTDGY) ("Mercator"), the mining and metals focused investment company, is pleased to announce that it has acquired 3,000,000 shares of Uranio AG (Frankfurt, Berlin, Stuttgart Stock Exchanges WKN: A0MKD4, UAI) ("Uranio"), a Swiss uranium exploration and development company, from Suphansa Holdings Ltd (Suphansa). The shares acquired from Suphansa represent 1.33 percent of Uranio's issued share capital.

Consideration for the acquisition of Mercator's stake in Uranio will be the placement of 20,000,000 new ordinary shares of Mercator to Suphansa. Suphansa has agreed to a voluntary escrow of the shares issued to it for a period of 12 months.

Uranio AG is an exploration and emerging mining company with headquarters in Basel, Switzerland. Its principal assets are extensive Uranium-rich exploration properties in the Central African Republic ("CAR") and in Argentina. The main asset is an advanced Uranium project adjoining Uramin's Bakouma deposit in the CAR. Uranio had gross assets of GBP 6.6 million for the year ended December 31, 2008.

On November 5, 2009, Uranio announced that it had received an indicative offer from a large Chinese resource group to acquire its entire issued share capital. The board of Uranio is reviewing this offer.

A summary report on Uranio and its assets dated October 21,2009 and provided by Equity Development (www.equitydevelopment.co.uk), a research company authorised and regulated by the Financial Services Authority of the United Kingdom, may be downloaded at: http://www.uranio.ch/english/downloads.html.

Uranio is currently utilising the technical expertise of SRK Consulting to further the development of its assets in the CAR and Argentina.

Patrick Harford, Managing Director of Mercator, stated, "I am excited to report that Mercator now has a substantial interest in the rapidly growing uranium exploration and development sector. Uranio has assembled a promising portfolio of uranium claims across the Central African Republic and Argentina, and Mercator can be instrumental in the process of realising value from these assets."

Mr. Harford continued, "This transaction was successfully completed because of our management's association with Mr. Richard Ondoko, a well-known businessman resident in the CAR. Mr. Ondoko was responsible for assisting the Uranio involvement in that country. Mr. Ondoko made the introduction to the principal shareholder of Suphansa, Mr Philip Saunders. We intend to pursue jointly with Mr Saunders and Mr Ondoko other opportunities throughout Sub-Saharan Africa. Mercator will provide technical and corporate advice to Suphansa and Mr Ondoko in this effort."

The Company also announces that pursuant to the terms of a Warrant Instrument by way of Deed Poll dated May 29, 2009, Notice of Exercise has been received for 1,846 Warrants for Ordinary Shares of 0.1p each in the Company at a subscription price of 5p each.

The Company has applied for the 20,000,000 New Ordinary Shares and 1,846 New Ordinary Shares (20,001,846 New Ordinary Shares in total) to be admitted to trading on AIM. Admission is expected to take place on November 19, 2009. The New Ordinary Shares will rank pari passu in all respects with the existing ordinary shares in the Company currently traded on AIM. Following admission there will be 144,370,442 Ordinary Shares in issue.

Mercator Gold is a London AIM listed diversified mining investment company with quality assets and the capability to undertake significant, value accretive transactions. The Company is dedicated to creating shareholder value through a process of finding value, adding value and realising value by accessing a pipeline of projects sourced from its global network. Mercator Gold has significant investments in New Mexico, USA, Thailand, Papua Province of Indonesia and Australia.

For further information, please visit Mercator's website (www.mercatorgold.com)

This press release may contain "forward-looking statements", which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure documents filed from time to time with the relevant UK authorities.

SOURCE: Mercator Gold plc

Mercator Gold 
Patrick Harford, Managing Director 
Tel: 646 239 9087 
Email: info@mercatorgold.com

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