Mercator Minerals Reports Record Production  

VANCOUVER, BC - Mercator Minerals Ltd. Reported production results for the three months and year ended December 31, 2011, along with 2012 guidance for production, capital expenditures and average cash costs from its wholly-owned Mineral Park Mine in Arizona. With the successful completion of the Phase II mill expansion and improving operating efficiencies planned for 2012, the Company expects to produce 90 to 100 million copper equivalent pounds in 2012.

With the successful completion of the Phase II mill expansion in the third quarter of 2011, Mineral Park Mine achieved record copper and molybdenum production for both the fourth quarter and year 2011. Copper equivalent production for 2011 was a record 80.3 million pounds; comprised of 42.4 million pounds of copper in concentrates and cathode, 7.0 million pounds of molybdenum in concentrates and 721,000 ounces of silver. Production for the fourth quarter totalled 23.6 million copper equivalent pounds, comprised of 11.3 million pounds of copper in concentrates and cathode, 2.3 million pounds of molybdenum in concentrates and 204,000 ounces of silver.

Previous guidance for the fourth quarter 2011 was 12.5 million pounds of copper in concentrates and cathode, and 2.3 million pounds of molybdenum in concentrates, or 24.8 million pounds on a copper equivalent basis. Fourth quarter 2011 production was 11.3 million pounds of copper in concentrates and cathode and 2.3 million pounds of molybdenum in concentrates or approximately 23.6 million pounds on a copper equivalent basis.

Copper production was lower than expected in the fourth quarter as mill throughput was impacted by the processing of harder ore from the Turquoise pit at Mineral Park. Taking into consideration the harder than expected ore in the Turquoise pit portion of the mine, plans have been accelerated to install a pebble crusher in the SAG mill circuit. The pebble crusher should reduce the size of the material being re-circulated in the SAG mill and also allow more material to be processed through the ball mills, which presently have available excess grinding capacity. The new pebble crusher is expected to be installed by the end of the second quarter 2012. Despite the lower throughput rates, molybdenum production met previous guidance due to higher molybdenum grades and higher recovery rates.

"Mineral Park operations went very well during the quarter, its first full quarter since the completion of Phase II mill expansion. During the quarter, the mill completed a consecutive 90-day completion test which required an average throughput rate of over 45,000 tons per day. Also during this 90-day period, we were pleased to see the mill achieve higher average copper and molybdenum recovery rates of nearly 80% and over 73%, respectively," said Bruce McLeod, President and CEO. "We now have a better understanding of the harder ores in the Turquoise pit, so the ore feed from this pit will be blended with ores from the Central pit to ensure optimal performance to maximize throughput and recovery rates at the mill until the pebble crusher is installed."

"We have high expectations for the coming year," commented McLeod. "Our goals for Mineral Park in 2012 are to maximize cash flows by increasing throughput rates, lowering unit costs and sustaining targeted recovery rates through the year. At El Pilar, we continue to ensure this very attractive copper project achieves construction-ready status as soon as possible while continuing to find value accretive financing for the mine development. At El Creston, we will be releasing the feasibility study shortly, which will provide a valuation update of this robust moly/copper project."

Guidance for Mineral Park Mine for the year

As approximately 25% of mill feed for 2012 is now expected to be from the harder portion of the Turquoise pit, the Company has lowered the throughput rate to be processed in the mill to 50,000 tons per day for all of 2012. The impact of this change revises expected production levels from previous guidance to 49.2 to 54.3 million pounds and 9.0 to 10.0 million pounds of copper and molybdenum, respectively. On a copper equivalent basis, 2012 production of 90.3 to 100.0 million pounds is 12% to 25% higher than the record production levels achieved in 2011. With continual production efficiencies and higher head grades expected to be experienced through the year, the Company should produce 9% and 13%, respectively, more copper and molybdenum in the second half than in the first half of 2012.

During 2012, capital expenditures at Mineral Park of US$9.2 million include a SAG recycle pebble crusher to increase recoveries at the mill, two 100-ton haul trucks and modifications to the crushers.

The Company also expects to incur US$9.6 million of capital expenditures, primarily for permitting and engineering design, at its El Pilar project to advance it to a "construction-ready" status.

The company’s address is 1050 - 625 Howe Street, Vancouver, BC V6C 2T6, (604) 694-0005, fax: (604) 558-0058.