Mercator Minerals Amends Mineral Park Credit Facility and Closes Bought Deal Equity Financing

Mercator Minerals Ltd. (TSX:ML) ("Mercator" or the "Company"), is pleased to announce that its wholly-owned subsidiary, Mineral Park Inc. ("MPI"), has executed an amendment to its MPI credit facility (see October 1, 2012 press release). In conjunction with the refinancing, Mercator has also closed its previously announced bought deal private placement of 55,775,000 common shares of Mercator at a price of $0.52 per common share for gross proceeds of approximately C$29 million ("Private Placement") through a syndicate of underwriters led by Haywood Securities Inc. and RBC Capital Markets, and including BMO Capital Markets, Canaccord Genuity Corp., Paradigm Capital Inc. and Raymond James Ltd.

The Company plans to use the net proceeds of the Private Placement to reduce Mineral Park Inc.'s working capital deficit and for general corporate purposes. As required to meet the conditions of the amended MPI credit facility, Mercator has executed a guarantee of the amended MPI credit facility and has arranged to provide Private Placement proceeds to MPI in the amount of US$20 million.

The common shares sold under the Private Placement are subject to a hold period and may not be traded until February 24, 2013, except as permitted by applicable securities legislation and the rules and policies of the Toronto Stock Exchange.

Bruce McLeod and Stephen Quin, both of whom are directors of Mercator, acquired 100,000 and 40,000 common shares respectively as subscribers under the Private Placement. The participation by Messrs McLeod and Quin is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities being issued nor the consideration paid exceeds 25% of Mercator's market capitalization.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States per�sons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Mercator Minerals Ltd.

Mercator Minerals Ltd., a TSX listed Canadian mining company with the potential to have one of the fastest growing base metal profiles in its peer group, is a copper, molybdenum and silver producer with a diversified portfolio of high quality assets in the USA and Mexico. Mercator provides investors exposure to current copper, molybdenum and silver production from the large tonnage long life Mineral Park Mine in Arizona, as well as mid-term exposure to potential copper production from its El Pilar deposit in the State of Sonora in northern Mexico and longer term exposure of molybdenum and copper through the potential development of the El Creston deposit also in the State of Sonora in northern Mexico.