Mercator Gold PLC

Silver Swan Group

Following the sale in 2008 of a package of exploration tenements located near Meekatharra in Western Australia to Silver Swan Group Ltd (‘Silver Swan’), an Australian Securities Exchange (ASX) listed exploration company (ticker: SWN), Mercator owns 1 million ordinary shares in Silver Swan, having disposed during 2009 of a total of 9 million ordinary shares for cash proceeds of approximately A$3 million.

Mercator also holds 4 million performance shares in Silver Swan, which will convert to a further 4 million ordinary shares subject to certain conditions, the most notable of which is the proving up by Silver Swan of 350,000 oz Au or Au equivalent in the indicated resource category on the tenements acquired from Mercator.

Silver Swan has made a significant base metal discovery of the volcanogenic massive sulphide (Cu-Zn-Ag-Au) type on the tenements acquired from Mercator. Wide, high grade intersections of mineralisation bearing similarities to that at the Golden Grove base metal mine owned by China Minmetals and located 240km to the southwest have been recorded at Silver Swan’s Austin prospect.

Drilling highlights from the Austin prospect include:

35.55m @ 1.7% Cu

25.2m @ 13.7% Zn

7m @ 1.3g/t Au and 18.6g/t Ag

Mercator was instrumental in the appointment of key management to Silver Swan, and Silver Swan thus represents an excellent example of the process by which Mercator is able to add value to an asset and then realise this value at an opportune time.

For more information please visit www.silverswangroup.com.au.