Mercator Gold - Australian Gold Exploration

Mercator's principal interest is in Australian Gold Exploration at The Meekatharra Properties.

The Company's projects areas form a discontinuous tenement package over an area of approximately 1,932 km2 and extending over a distance of some 200 km of the Meekatharra greenstone belt and peripheral Archaean granites.

The Meekatharra belt is prodigiously mineralised hosting several historically significant gold deposits, most notable the Gibraltar, Great Northern Highway, Bluebird-South Junction and Reedy mines, in addition to the deposits of the Paddy's Flat area. Whilst the Meekatharra area has previously been extensively explored and exploited, Mercator's strategy is to identify and develop geologically driven conceptual targets considered prospective for high grade gold deposits capable of producing at least half a million ounces of gold.

The Company has identified six key project areas

Yaloginda
Paddy's Flat
Meekatharra North
Reedy
Nannine
Stakewell The remaining project areas are considered to represent regional targets at an early stage of assessment.

Yaloginda

	Comprises a coherent tenement holding centred over the former Gibraltar, Bluebird, South Junction and Great Northern Highway mines.
	Recent exploration has highlighted the high-grade gold potential of the Surprise, Bluebird and South Junction mines and depth extensions beneath the Great Northern Highway open pit.

Paddy's Flat

	Centred over the Meekatharra township, some 12km northeast of the Bluebird processing plant.
	Gold mineralisation is contained along steeply-dipping zones of shearing and faulting between felsic porphyry intrusives and ultramafic-mafic volcanic and intrusive rocks.

Meekatharra North

	Lies immediately north and adjacent to Paddy's Flat.
	Project area is considered to be prospective for large tonnage, low grade oxide gold mineralisation.
	Recent drilling has confirmed and extended the Maid Marion and Nottingham gold geochemical anomalies.

Reedy

	Project area hosts and number of historical gold occurrences, including the significant former South Emu, Triton, Rand, Boomerang, Central and Kurara open pit and underground gold mines.
	These mines have reported 650,000 ounces of historical production.

Nannine

	Hosts the Aladdin, Bailey Island, Caledonian and Nannine Reef gold deposits.
	Evaluation of the mine workings is planned to determine whether the currently defined mineralisation could be upgraded to meet Mercator's minimum criteria of at least half a million ounces.

Stakewell

	Immediately west of the historical Reedy mining centre and includes the former Kohinoor gold mine.
	Recent drilling encountered narrow zones of moderate grade (3-6g/t Au).

Mercators' exploration strategy in the Meekatharra district is underpinned by the presence of the wholly owned Bluebird processing facility. This infrastructure provides Mercator with a significant opportunity to rapidly develop a number of gold deposits within its Meekatharra Tenements. An independently commissioned report concluded the Bluebird plant was complete and in reasonable to good condition. The replacement value of the plant was estimated at A$29.6 million.

Mineral Resources

The company currently has mineral resources of approximately 2.32m ounces AU, as set out in the table below:

Grade is in g/t. Ounces are Troy ounces. Small numeric differences may occur due to number rounding.

* The Surprise resource is inclusive of the Company's Probable Reserves at Surprise of 992,000 tonnes @ 2.36 g/t for 75,000 ounces. This represents a conversion of resource ounces to reserves of 68%.