Mercator Minerals Reports Record Copper/Molybdenum Production  

VANCOUVER, BC - Mercator Minerals Ltd. reported that the Mineral Park mine set a record for both copper and molybdenum production. Copper production totalled 11.2 million pounds (10.4 million pounds in concentrates and 0.8 million pounds of cathode copper) and 1.8 million pounds of molybdenum. The increased production is attributable to improved copper and molybdenum recoveries and increased mill throughput during the quarter of 2011. Recoveries were 76.6% for copper and 73.6% for molybdenum and mill throughput averaged a record of 32,260 tons per day (tpd).

Net income of $24.0 million ($0.12 per share) for the quarter (includes a one time charge of $2.8 million related to the Creston Moly acquisition) as compared to a net income of $22.9 million ($0.12 per share) for the comparable quarter of 2010. Revenues of $72.4 million for the quarter, an increase of $27.5 million, or 61%, over the comparable quarter of 2010. Cash costs in the quarter for copper was $2.29 per pound and for molybdenum was $12.10 per pound, or 11% and 18%, respectively lower than the first quarter of 2011. Earnings from operations of $17.8 million (or nearly 25% of total revenues), representing an $8.0 million increase, or 82% increase, over the comparable quarter of 2010. The Company recorded earnings before interest, tax, depreciation, and amortization (EBITDA*) of $29.2 million for the quarter as compared to $29.1 million for the second quarter of 2010.

Net cash from operations at the Company's wholly owned Mineral Park Mine was $23.5 million for the quarter, compared to a negative $3.1 million in the second quarter of 2010. Capital expenditures of $19.7 million for the quarter included $15.7 million for the Phase 2 mill expansion and $4.0 million for the natural gas turbine installation at Mineral Park mine. The turbine was placed into service on August 15, 2011. Phase 2 mill expansion construction is complete and ore throughput will begin ramping up. The second ore crusher is expected to be completed and placed into service by mid-September, increasing the ore throughput to the design rate of 50,000 tpd. In June the Company acquired all the outstanding common shares of Creston Moly Corp. The company's address is 1050 625 Howe Street, Vancouver, BC V6C 2T6, (604) 694-0005, fax: (604) 558-0058.