Mercator Minerals and Stingray Copper complete business combination

    VANCOUVER, Dec. 21 /CNW/ - Mercator Minerals Ltd ("Mercator") (TSX - ML)
and Stingray Copper Inc. ("Stingray") (TSX - SRY) are pleased to announce the
completion of their previously announced business combination (the
"Transaction"). The Transaction was completed via a plan of arrangement that
was approved by the shareholders of Stingray on December 11, 2009 and
received court approval on December 18, 2009. Stingray is now a wholly owned
subsidiary of Mercator.
    "The addition of Stingray's El Pilar copper project to Mercator's
development pipeline has strengthened the company's organic growth profile
while substantially increasing copper leverage, with a +113% increase in
copper reserves and +141% increase in total copper resources", said Michael
Surratt, President and CEO of Mercator. "We can now focus on delivering our
planned Mineral Park Phase II expansion in 2010 while commencing the
development plan for El Pilar."
    The Transaction was approved by 99.9% of the eligible votes cast at the
meeting of the Stingray shareholders, representing 64% of Stingray's
outstanding shares that were eligible to vote. Pursuant to the plan of
arrangement each Stingray shareholder has received 0.25 Mercator shares. All
outstanding options to acquire common shares of Stingray have been exchanged
for Mercator options to purchase 0.25 of one Mercator share in lieu of one
Stingray option. Mercator also welcomes former Stingray director Joseph Keane
to the board of directors.
    The TSX will disseminate a notice announcing the delisting of Stingray
shares when the TSX deems appropriate.
Transaction Highlights:

    -   El Pilar is an advanced SX-EW copper development asset in Sonora,
        Mexico with a recently completed Definitive Feasibility Study and
        robust economics based on US$2.25/lb copper:
        -  After tax IRR of 25.3% (33.6% before tax)
        -  After tax NPV10% of US$184M (US$289M before tax)
        -  Forecast 14 year life of mine with total cathode copper production
           of 956 million lbs
    -   Increased leverage to copper with a +113% increase in copper reserves
        and a +141% increase in total copper resources.
    -   Sustained pipeline of expansion and project development with Mineral
        Park Phase II steady-state production coinciding with El Pilar
        development.
    -   Asset diversification in an established mining friendly jurisdiction.

    Gary Simmerman, BSc., Mercator's VP Engineering, a Qualified Person as
defined by NI43-101, supervised the preparation of and verified the Mercator
technical information contained in this release.

About Mercator Minerals Ltd.

    Mercator Minerals Ltd. is a TSX listed mining company with an experienced
management team that has brought the mill expansion at the Mineral Park Mine,
one of the largest and most modern copper-moly mining-milling operations in
North America to production in less than 2 years. Mercator management is
dedicated to maximizing profits at the Mineral Park Mine and the development
of the El Pilar copper project in Mexico.

    The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this press release.

Forward Looking Information

    This news release contains forward looking statements of Mercator, being
statements which are not historical facts, including, without limitation,
statements regarding the potential benefits of the proposed acquisition of
Stingray by Mercator and discussions of future plans, projections and
objectives. In addition, estimates of mineral reserves and resources may
constitute forward looking statements to the extent they involve estimates of
the mineralization that will be encountered if a property is developed. This
news release also contains forward looking statements of Stingray, which are
derived from publicly available documents. There can be no assurance that
such statements will prove accurate. Such statements are necessarily based
upon a number of estimates and assumptions that are subject to numerous risks
and uncertainties that could cause actual results and future events to differ
materially from those anticipated or projected. Important factors that could
cause actual results to differ materially from Mercator's or Stingray's
expectation are in the documents filed by Mercator and Stingray,
respectively, from time to time with the Toronto Stock Exchange and
provincial securities regulators, most of which are available at
www.sedar.com. Other than as required by applicable securities legislation,
Mercator and Stingray disclaim any intention and assumes no obligation to
revise or update any forward-looking statement even if new information
becomes available, as a result of future events or for any other reason.