Exec Share Option Scheme

Mercator Gold PLC 19 November 2004 FOR IMMEDIATE RELEASE 19 NOVEMBER 2004 ADOPTION OF UNAPPROVED EXECUTIVE SHARE OPTION SCHEME In its Admission Document issued on 1 October 2004, the Company indicated that, following the admission of its Ordinary Shares of 1p each to trading on AIM, it intended to establish a share option scheme for the benefit of Executives and senior employees of the Mercator Group. The Company announces that the Board has today approved the adoption of the Mercator Gold plc Unapproved Share Option Plan ('the Scheme'). The Principal features of the Scheme are as follows: Eligibility Options may only be granted to Executives of the Mercator Group which may include Directors and any person whose services are provided to the Mercator Group through a personal services company. Grant of Options No Options under the Scheme may be granted after 18 November 2014. An Optionholder shall be issued with an Option Certificate which contains an undertaking by the Optionholder to be bound by the rules of the Scheme. In addition, the Optionholder must confirm his acceptance of the Option grant by the execution and delivery to the Company of a form of acceptance and election. Exercise Price The exercise price of Ordinary Shares comprised in an Option shall be the greater of the middle market quotation for an Ordinary Share (as derived from the Official List for the ten dealing days immediately preceding the date of grant) and the nominal value of an Ordinary Share. Exercise of Options Save for certain circumstances, an Option may be exercised at any time after the date of grant and not later than the end of the day preceding the tenth anniversary of the date of grant. The Company also announces that, pursuant to the Scheme, options have been granted today in respect of an aggregate of 4,500,000 Ordinary Shares to the Directors of the Group as follows: Director Number of Ordinary Shares Exercise Price per Exercise Period under option Ordinary Share Terry 750,000 10p 19.11.2004 to Strapp 18.11.2014 Patrick 750,000 10p 19.11.2004 to Harford 18.11.2014 Michael de 750,000 10p 19.11.2004 to Villiers 18.11.2014 Dr Julian 750,000 10p 19.11.2004 to Vearncombe 18.11.2014 Michael 500,000 10p 19.11.2004 to Elias 18.11.2014 Nicholas 500,000 10p 19.11.2004 to Allen 18.11.2014 Paul 500,000 10p 19.11.2004 to Loudon 18.11.2014 For further information, please contact: Mercator Gold plc Patrick Harford, Managing Director Tel: +44 (0) 7786 486645 Terry Strapp, Chairman Tel : +61 (0) 8 9322 7422 Beaumont Cornish Limited Rod Venables / Roland Cornish Tel: +44 (0) 7628 3396 Phillip Securities UK Limited Nick Bealer Tel: +44 (0) 20 7553 8281 Parkgreen Communications Justine Howarth / Ana Ribeiro Tel: +44 (0) 20 7493 3713 Note to editors Mercator Gold plc ('AIM-MCR') which joined AIM on 8 October 2004 has a joint venture agreement with St Barbara Mines Limited ('the Annean Joint Venture') to explore for economic gold resources in the Annean Joint Venture area in the Meekatharra region of Western Australia. Under the terms of the Annean Joint Venture, Mercator has the right to earn a 70% interest in the Meekatharra properties by spending AUD$8 million (approx. GBP£3.1 million) on exploration. This information is provided by RNS The company news service from the London Stock Exchange