(MCR.L) Mercator Gold Buy/Sell

MERCATOR GOLD plc ("Mercator Gold", "Mercator" or "the Company" )

CORPORATE UPDATE

London 8 October 2009 - Mercator is pleased to report on progress of its North American and Western Australian activities.

HIGHLIGHTS

LONDON, Oct 7 (Reuters) - Mercator Gold Plc:

MERCATOR GOLD plc ("Mercator Gold", "Mercator" or "the Company" )

PLACING & ISSUE OF EQUITY

London 7 October 2009

PLACING

The Company has made a placement of 3.125 million shares at 4 pence per share to raise £125,000. The placement, made at a 15% premium to the market, was organised through the Company's long time advisors, Loeb Aron, at a cost of 5% plus broker warrants. The funds raised will be used to continue the work on the Copper Flat Project.

EXERCISE OF WARRANTS

The Company also announces that pursuant to the terms of a Warrant Instrument by way of Deed Poll dated 29 May 2009, Notice of Exercise has been received for 114 Warrants for Ordinary Shares of 0.1p each in the Company (the "Shares") at a subscription price of 5p each.

The Company has applied for the 3,125,000 and 114 Shares (3,125,114 New Ordinary Shares in total) to be admitted to trading on AIM. Admission is expected to take place on 8 October 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 124,368,596 New Ordinary Shares in issue.

Managing Director, Patrick Harford, said: "The placement of shares - achieved at a premium to market price - strengthens Mercator's balance sheet and provides the financial headroom for the company to pursue its current work programmes."

For further information please contact Mercator Gold plc
Michael Silver, Chairman Tel: +44 (0) 20 7929 1010

Patrick Harford, Managing Director Email:info@mercatorgold.com Website:www.mercatorgold.com
Bankside Consultants Ltd Tel: +44 (0) 20 7367 8888

Simon Rothschild Oliver Winters Cenkos Securities plc
Adrian Hargrave Tel: +44 (0) 20 7397 8900

Beth McKiernan Old Park Lane Capital PLC
Forbes Cutler, Director of Corporate Broking Tel: +44 (0) 20 7518 2603

AIM: MCR

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES 1. Identity of the issuer or the underlying issuer

MERCATOR GOLD PLC

of existing shares to which voting rights are

attached:
2 Reason for the notification(please tick the appropriate box or boxes):

An acquisition or disposal of voting rights
An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares
already issued to which voting

rights are attached
An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights
Other (please specify): Share Capital Increase

X
3. Full name of person(s) subject to the CREDIT SUISSE GROUP

AG

notification obligation:
4. Full name of shareholder(s) CREDIT SUISSECREDIT

SUISSE SECURITIES (EUROPE) LTD

(if different from 3.):
5. Date of the transaction and date on 14.08.09
which the threshold is crossed or

reached:
6. Date on which issuer notified: 20.08.09
7. Threshold(s) that is/are crossed or 6%

reached: 8. Notified details: A: Voting rights attached to shares
Class/type of Situation previous Resulting situation after the

triggering transaction
shares to the triggering
if possible using transaction

the ISIN CODE
Number Number Number Number of
voting % of voting rights
of of of shares rights
Shares Voting
Rights
Direct Direct Indirect Direct

Indirect
ORDGB00B0P4LQ95 7,755,438 7,755,438 N/A N/A
6,904,455 N/A 5.69%

B: Qualifying Financial Instruments Resulting situation after the triggering transaction
Type of financial Expiration Exercise/ Number
of voting % of votingrights
instrument date Conversion Period rights

that may be
acquired if the

instrument is exercised/ converted.

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments(xv, xvi)

Resulting situation after the triggering transaction
Type of financial Exercise price Expiration date Exercise/ Number of
voting rights instrument refers to % of voting rights
instrument Conversion period

Nominal Delta

Total (A+B+C)
Number of voting rights Percentage of

voting rights
6,904,455

5.69%
9. Chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held, if applicable:

1. Credit Suisse Group AG 2. Credit Suisse 2.1. Credit Suisse Securities (Europe) Ltd Proxy Voting: 10. Name of the proxy holder: 11. Number of voting rights proxy holder will cease
to hold:

12. Date on which proxy holder will cease to hold
voting rights:

13. Additional information:
14. Contact name: Simon Crawley/Carolyn Collins
15. Contact telephone number: +44 (0) 20 7888 0241