Mercator Minerals Provides Update On The El Pilar Project

VANCOUVER - Mercator Minerals Ltd. reported an update on activities at its El Pilar copper project in northern Sonora, Mexico. Ongoing activities include continuing to de-risk the Project through additional metallurgical testing, which has already commenced, and completion of the final environmental permits for constructing the power line to the Project. All other permits for construction are already in place.

Although extensive external and internal metallurgical studies have already been conducted for the Project, including over 100 column tests and two larger scale run-of-mine crib tests, additional metallurgical column testing has commenced to evaluate the potential to attain the same projected copper recoveries (56.9% over the Project's LOM) while reducing acid consumption. These column tests will be conducted by managing solution application rates and raffinate pH, and are designed to build on positive results from similar testing conducted in 2012 and noted in the Study.

"We believe that the planned additional metallurgical testing has the opportunity to significantly improve Project economics and increase flexibility due to the potential for lower life-of-mine acid consumption rates," comments Bruce McLeod, President and CEO of Mercator. "Approximately, 28% of the initial capital costs of the Project are acid plant related and the potential to reduce the capital associated with the acid plant portion of the Project could have a significant positive impact on our ability to finance the Project."

Over the past few months, the Company has received two environmental permits required to commence Project construction and mining: Explosives permit from SEDENA (Mexican Federal Government National Defense Ministry), and, final water permit from CONAGUA (Mexican Federal Government National Water Commission). This water permit is for an additional 1.2 million cubic meters of water per year, bringing the total to 3.4 million cubic meters a year, the total Project requirement.

Outstanding environmental permits required include: Change of Land Use ("CUS") Permit and the Environmental Impact Assessment Study ("MIA") to construct the 115 KW power line to the Project. The processes to obtain both of these permits are well advanced, including recent filing of the CUS, with approvals expected in the second quarter of 2013.

All of the permits necessary for the commencement of construction of the mine have been received.