Mercator Minerals provides update on El Pilar Copper Project

    VANCOUVER, Jan. 26 /CNW/ - Mercator Minerals Ltd. ("Mercator") (TSX - ML)
is pleased to provide an update of the recent developments at the Company's
wholly owned El Pilar Copper Project in Northern Mexico.
    Aker Chemetics ("Aker") in Vancouver has presented the advanced basic
engineering study for the sulphur burning acid plant for the El Pilar Copper
Project in Northern Mexico. In the Feasibility Study developed by M3
Engineering & Technology Corp. ("M3") the estimated capital cost, including
contingency, of the acid plant was US$56.9 million, for a 600 mtpd plant. An
additional 150 mtpd of acid was projected to be purchased at market price.
Subsequent to the completion and delivery of the feasibility study Aker, a
well known acid plant designer was retained to do an advanced basic design
and detailed cost estimate utilizing bids for all of the major equipment. The
result of the review by Aker is a 750 MTPD plant with a capital cost
estimate, including contingency, of US$54.9 million. The result is a
reduction of US$2.0 million in capital cost and a substantial cost savings in
operational cost due to the additional acid production of 150 mtpd.
    On January 9, 2010, the assembly of Ejido Miguel Hidalgo voted in favor
of selling the surface rights necessary for the development of El Pilar
Copper Project to Recursos Stingray ("Recursos") a wholly owned subsidiary of
Mercator. The next step is for the Ejido authorities to request from the
Agrarian Authority the full title. The process of approval by the government
and granting of land title is estimated to take between three and four
months.
    In addition SEMARNAT (Ministry of Environment and Natural Resources) has
approved the Environmental Impact Manifest (MIA) and has granted the
environmental permit for the development of the Project. SEMARNAT concluded
that the steps and measures included in the MIA that are to be adopted during
construction and operations were adequate. Two important factors in the
approval by SEMARNAT were that; Recursos demonstrated that water is available
outside the main watershed and supply from the river to nearby communities
would not be affected; and that the socio-economic study developed by a
project consultant demonstrated that the Project will be a positive driving
force for economic development in an area of the State of Sonora with low
employment.
    Mercator has also started the layout for a large "crib test" on the El
Pilar ore that will be conducted at Mineral Park. Two large concrete bins
(15'x 25'x 16', which have already been constructed on site at Mineral Park)
will be utilized to perform a run of mine test and a minus 6" test. The tests
are being set up and supervised by an independent engineer, to duplicate
start up, and optimize leaching at El Pilar. The feasibility study was based
on 6" minus and was done in columns. Run of mine was not tested. Mercator
believes that run of mine could have significant positive economics if
successful. This work is being done to further optimize the El Pilar
feasibility work. The test will run for at least 120 days per the design and
will commence within the next month. Detailed design work on the El Pilar
Copper Project is continuing while the crib test is being conducted.
    "These legal steps and milestones are key for the continuing development
of Mercator's El Pilar Copper Project", said Michael Surratt, President and
CEO of Mercator.
    Mike Broch, a senior Mercator geologist, a Qualified Person as defined by
NI43-101, supervised the preparation of and verified the 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 press release contains certain forward-looking statements, which
include estimates, forecasts, and statements as to management's expectations
with respect to, among other things, the size and quality of the Company's
mineral reserves and mineral resources, future production, capital and mine
production costs, demand and market outlook for commodities, and the
financial results of the Company 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. These
forward-looking statements involve numerous assumptions, risks and
uncertainties and actual results may vary. Factors that may cause actual
results to vary include, but are not limited to, certain transactions,
certain approvals, changes in commodity and power prices, changes in interest
and currency exchange rates, inaccurate geological and metallurgical
assumptions (including with respect to the size, grade and recoverability of
mineral reserves and resources), unanticipated operational difficulties
(including failure of plant, equipment or processes to operate in accordance
with specifications, cost escalation, unavailability of materials and
equipment, delays in the receipt of government approvals, industrial
disturbances or other job action, and unanticipated events related to health,
safety and environmental matters), political risk, social unrest, and changes
in general economic conditions or conditions in the financial markets. These
risks are described in more detail in the Annual Information Form of the
Company. The Company does not assume the obligation to revise or update these
forward-looking statements after the date of this report or to revise them to
reflect the occurrence of future unanticipated events, except as may be
required under applicable securities laws. For a more complete discussion,
please refer to the Company's audited financial statements and MD&A for the
year ended December 31, 2008 on the SEDAR website at www.sedar.com.