Mineral Park Mine Improvements Have Increased Grinding Efficiency

VANCOUVER, BC - Mercator Minerals Ltd. reported an update on on-going recent activities at its wholly-owned Mineral Park Mine, including production results for the three months ended March 31, 2013. Most importantly, recent changes to the grinding circuit have resulted in sustained throughput increases of approximately 20% to average 54,700 tons per day (tpd).

"We are very encouraged with the grinding circuit optimizations made in the mill late in the first quarter," stated Bruce McLeod, Mercator's President and CEO. "The improvements have increased grinding efficiency by passing grinding load from the SAG mills to the previously underutilized ball mills and by optimizing the internal configuration of the SAG mills. Early results indicate average throughput rates have increased by approximately 20% over the expected ore grind index assumed in our 2013 mine plan, while maintaining metal recovery rates at above design rates."

"Our strategy of working safely, increasing productivity, and reducing costs throughout the entire Company is starting to deliver benefits as our financial position stabilizes," continues Mr. McLeod. "Productivity improvements and cost reductions are positioning us to unlock shareholder value."

At Mineral Park, average mill throughput rates have recently increased due to the optimization of the internal configuration of the two SAG mills and the changing of the pebble handling processes by feeding a higher proportion of the recycled pebbles directly into the four ball mills. As a result of these optimizations average throughput rates, as measured by tons per hour (tph), when compared to harder ore blends have increased significantly. Over this period, mill throughput rates, on a sustained basis, at an average ore grind index of 11.3, have averaged 54,700 tpd, which is 9% above the stated design capacity of 50,000 tpd.

As a result of the recent throughput improvements, the Company is reviewing the scope and requirement for the $5 million pebble crusher included in the previously announced $13.7 million capital expenditures program for 2013.

Other optimization initiatives that have contributed to the increase in average mill throughput include: (1) implementing a hard ore and zinc modelling program that has increased ore blending options to manage hardness and zinc content, and (2) implementing a blasting optimization program that has reduced oversize ore going to the primary crusher and entering the mill. Two additional haul trucks, with a third expected to arrive in June 2013, were commissioned late in the first quarter of 2013 and have helped increase flexibility in ore blending options.

Since the commissioning of the Phase II expansion late in 2011, considerable progress has been made in improving copper and molybdenum recoveries, to the point they now exceed design parameters. During the first quarter of 2013, recoveries for copper and molybdenum were 82.5% and 82.3%, respectively, compared to 72.6% and 70.9% in the first quarter of 2012, and design parameters of 80% and 75% for copper and molybdenum, respectively.

With the improved safety culture arising from the "Safe Production" program implemented a year ago at Mineral Park, year-over-year safety incident rates, as measured by total reportable incident rates (TRIR) have decreased significantly to rates that are now below those for comparable open pit mines in Arizona, while employee turnover has decreased by 10% over the same period.

Cost reduction initiatives continue to be implemented throughout the organization with reduced costs at the operations and reduced spending on administration. Comparing 2011 to 2012, onsite costs (on a per ton milled basis) have been lowered by 7% from $11.04 per ton milled in 2011 to $10.29 in 2012. The Company's goal is to further reduce onsite costs below $10.00 per ton. Administrative cost efficiency initiatives have reduced administrative expenses from $2.3 million in the first quarter of 2012 to $1.4 million in the fourth quarter of 2012.

A detailed review of the exploration potential at Mineral Park has outlined three areas within the current life-of-mine pit design that have the potential, with further exploration work, to add to the Mineral Park mineral resource base. All three areas have intersected near surface copper and molybdenum values over mineable widths that have the potential, with an additional exploration work program, to optimize Mineral Park's mineral reserve and mineral resource estimates. In addition, two areas immediately adjacent to the current life-of-mine pit design contain near surface copper mineralization. The Company will continue to compile this data with next steps, including a potential drilling program, to be determined.