Mineral Park Operations Returning To Normal

VANCOUVER, BC - Mercator Minerals Ltd reported results for the three months ended March 31, 2014. For Q1 2014 the Company produced 16.2 million copper equivalent (ii) pounds, comprised of 7.2 million pounds of copper in concentrates and copper cathode, 2.2 million pounds of molybdenum in concentrates and 89 thousand ounces of silver. For Q1 2014, the Company generated revenues of $41.3 million, incurred an operating loss of $12.8 million and a net loss of $2.4 million or an adjusted net loss of $16.8 million.

D. Bruce McLeod, President and CEO of Mercator comments, "Since receipt the bridge loan proceeds commencing in late December 2013, improved working capital levels have allowed operations at Mineral Park Mine, located in Northwestern Arizona, to gradually return towards normalized levels. April 2014 mining rates were 83,800 tons per day, or a 44% increase since the start of the year, while April 2014 mill throughput rates averaged 41,470 tons per day, or a 32% increase since the beginning of 2014. As a result of the operational improvements, unit costs are also improving, and when combined with recent improvements in copper and molybdenum prices, the outlook for Mineral Park has improved significantly."

Mercator reported recoveries of 80.1% and 82.5%, for copper and molybdenum, respectively, which continue to be above mill design rates. Average mill throughput of 35,984 tons per day (tpd) was impacted by harder than expected ore mined, which had an average ore grind index of 13.5 kilowatt hour per ton (kwh/t), or 9% harder when compared to Q1 2013. Production was negatively impacted by a number of operating and financial constraints, which resulted in lower equipment availability and lower working capital levels. Throughput rates and production levels are gradually returning towards normalized levels with the improvements funded by the draw downs of proceeds from the bridge loan agreement entered into with Daselina Investments Ltd. in December 2013. Copper prices realized were negatively impacted by a mark-to-market provision of $1.5 million adjustment for final settlements on copper concentrates sold.