Mr. D. Bruce McLeod reports

MERCATOR MINERALS REPORTS FIRST QUARTER 2013 RESULTS

Mercator Minerals Ltd. has released its financial results for the three months ended March 31, 2013. (All amounts are in U.S. dollars unless otherwise specified.) For the first quarter 2013, the company reported revenues of $54.5-million, a gross profit of $500,000, and a net income of $1.8-million (one cent per share, basic) or an adjusted net loss after excluding non-cash items of $9.0-million (three cents per share). Cash flow used by operations, before non-cash working capital changes, was $3.1-million. As at March 31, 2013, the company had $25.6-million in cash and restricted cash on hand.

"The optimizations made late in the first quarter on the grinding circuit, along with enhanced ore-blending options, including the dewatering the Ithaca portion of the mine, provide us confidence that we are positioned to meet our 2013 production goals. Further, with the forecasted production increases through the balance of 2013, we also expect an associated decrease in unit costs," commented Bruce McLeod, Mercator's president and chief executive officer. "Throughout the company, we remain focused on increasing production, lowering unit costs and eliminating discretionary spending to ensure we remain competitive in these volatile markets."

First quarter 2013 highlights and significant items:

• Production for the period was 20.4 million copper equivalent pounds, composed of 9.1 million pounds of copper in concentrate and copper cathode, 2.4 million pounds of molybdenum, and 152,130 ounces of silver.
• Copper and molybdenum shipments were 7.9 million pounds and 2.3 million pounds, respectively. Copper shipments were less than production during the quarter due to an 800,000-pound buildup of inventory levels at the end of March, 2013, the balance of which was shipped in April, 2013.
• Recoveries were 82.5 per cent and 82.3 per cent, respectively, for copper in concentrates and molybdenum in concentrates, the fourth consecutive quarter that recoveries were over design rates.
• Average throughput was 42,738 tons per day, due to mining in harder ore sections of the pit and extra scheduled maintenance downtime. Since March 21, 2013, when optimizations to the grinding circuit were made, to May 9, 2013, average throughput rates have been 50,000 tpd, or an increase of 22 per cent when compared with the period from Jan. 1 to March 20, 2013.
• Due to low production levels, cash costs, on a co-product accounting basis, were $2.72 per pound of total copper produced and $11.08 per pound of molybdenum produced.
• As at March 31, 2013, working capital deficit was $3.7-million but was a positive $9.4-million after excluding non-cash current liabilities related to the company's hedging program and deferred revenue.
• Administration expenses, excluding non-cash stock-based compensation expense, were $1.5-million or 35 per cent lower than the same quarter a year ago.

                              OVERVIEW
                ($ millions unless otherwise noted)
                                                                Three months
                                                              ended March 31,
                                                              2013      2012

Revenues                                                     $54.5     $65.2
Gross profit                                                   0.5      14.0
Net income (loss)                                              1.8     (20.5)
Earnings (loss) per share, basic                             $0.01    $(0.08)
Adjusted net income                                           (9.0)      1.5
Adjusted earnings per share, basic                          $(0.03)    $0.01
Shipments (million pounds)
Copper                                                         7.9       7.9
Molybdenum                                                     2.3       2.3
Production (million pounds)
Copper                                                         9.1       9.9
Molybdenum                                                     2.4       2.3
Copper equivalent                                             20.4      20.4
Throughput (tons per day)                                   42,738    48,666
Recoveries (per cent)
Copper                                                        82.5      72.6
Molybdenum                                                    82.3      70.9
On-site operating costs ($/ton milled)                       11.17      9.19
Cash costs on a co-product basis ($/lb)
Copper                                                        2.72      2.31
Molybdenum                                                   11.08     11.75
Average realized prices ($/lb)
Copper (excluding hedges)                                     3.58      4.08
Molybdenum                                                   11.04     13.91

Revenues were 16 per cent lower in first quarter 2013 than in first quarter 2012, and with metal shipments consistent quarter over quarter, the decline was primarily due to realized copper and molybdenum prices being 12 per cent and 21 per cent lower, respectively. Cash costs of production, when comparing first quarter 2013 with first quarter 2012, on a co-product accounting basis, were 18 per cent higher for copper and 6 per cent lower for molybdenum. The higher on-site operating costs on a per-ton-milled basis were primarily a result of lower throughput rates and lower production levels achieved in first quarter 2013 as compared with first quarter 2012 (see Mineral Park mine discussion herein for further details). As a result of the noted operating factors, gross profit was $500,000 in first quarter 2013, as compared with $14.0-million in first quarter 2012. In addition to the impact of the mining operations, variations in net income achieved in first quarter 2013 of $1.8-million, as compared with first quarter 2012, were impacted by cost reductions in administration expenses, realized and unrealized gains/losses on derivative instruments, and non-cash share-based compensation and taxes. Administration expenses, excluding non-cash share-based compensation expenses, were 35 per cent lower in first quarter 2013 when compared with first quarter 2012.

Mineral Park mine

For first quarter 2013, Mineral Park produced 9.1 million pounds of copper in concentrates and copper cathode and 2.4 million pounds of molybdenum in concentrates. Production during first quarter 2013 at Mineral Park was impacted by additional maintenance downtime taken to reinstall the company's repaired natural gas turbine (which, since its reinstallation, has been exceeding operational expectations) and to reconfigure the SAG mills and pebble-handling system. Additionally, as planned during the quarter, the company mined through harder sections of the mineral deposit while also completing the dewatering of the Ithaca pit. The completion of these tasks permitted mining to resume in the Ithaca pit in the second quarter of 2013. Now that the pit has been dewatered, ore from Ithaca, which has higher copper grades than the other areas being mined, has provided, and is expected to continue to provide, additional blending options for the various ore types at the mine.

For first quarter 2013, mill throughput averaged 42,738 tpd, and recoveries for copper in concentrates and molybdenum in concentrates averaged 82.5 per cent and 82.3 per cent, respectively, for first quarter 2013, the fourth consecutive quarter that recoveries have been above mill design rates.

As discussed herein, average mill throughput rates have recently increased due to optimization of the internal configuration of the two SAG mills and changing the pebble-handling processes by feeding a higher proportion of the recycled pebbles directly into the four ball mills. As a result of these optimizations, from March 21, 2013 (when the optimizations to the grinding circuit were completed), to May 9, 2013, average throughput rates have increased significantly. Over this 49-day period, mill throughput rates, on a sustained basis and at an average ore grind index of 11.3, have averaged 50,000 tpd, the stated design capacity.

Other optimization initiatives that have contributed to the recent increase in average mill throughput include: (1) implementing a hard-ore- and zinc-modelling program that has increased ore-blending options to manage hardness and zinc content, (2) implementing a blasting optimization program that has reduced oversize ore going to the primary crusher and to the mill, and (3) the commissioning of two additional haul trucks in March, 2013, with a third truck expected to arrive in June, 2013.

Mineral Park 2013 outlook

With the recent increases in throughput rates and mining flexibility, the company expects second quarter 2013 production to exceed first quarter 2013 production. As a result of the benefits of these initiatives, Mineral Park continues to be on track to produce between 93.0 million to 102.0 million pounds of copper equivalent production in 2013, which includes 41.5 million to 46.5 million pounds of copper (38.5 million to 42.5 million pounds copper in concentrates and 3.0 million to 4.0 million pounds of copper cathode copper), 11.0 million to 12.0 million pounds of molybdenum and 600,000 ounces of silver.

As a result of the recent throughput improvements, the company is reviewing the scope and requirement for the $5.0-million pebble crusher included in the previously announced $13.7-million capital expenditures program for 2013. The company believes that the 2013 capital program, with a majority of the spending to be spent in the second half of 2013, can be financed from cash flow from operations. However, the company will continue to review the capital program for potential deferrals, should current economic conditions prevail.

El Pilar project

During the first quarter 2013, the company continues to derisk the El Pilar project, with additional metallurgical testing to evaluate the potential to attain the same projected copper recoveries (56.9 per cent over the project's life of mine as noted in the October, 2012, El Pilar project feasibility study) while reducing acid consumption, potentially by as much as 20 per cent. These column tests are being conducted by managing solution application rates and raffinate pH.

Meanwhile, the company continues to explore various value-accretive options to finance the project. After financing is secured, with a 15-month construction timeline, the company has the potential for a short cycle to convert its investment into cash flows.

Financial statements and management discussion and analysis

This news release is prepared as at May 10, 2013, and should be read in conjunction with the MD&A and financial statements for the period ended March 31, 2013. These documents have been posted on Mercator's website and on SEDAR under the company's profile.

Webcast/conference call

Mercator's senior management will hold a conference call and a live audio webcast on May 13, 2013, at 8:30 a.m. Pacific Time to discuss results for the first quarter 2013. To participate in the call, dial 877-240-9772 (North America) and 800-2787-2090 (international). A presentation will accompany the call and will be available on the company's website under investor relations, presentations.

An archived recording of the conference call will be available for playback after the event until April 4, 2013, by dialling 1-800-408-3053 (North America), 905-694-9451 (local) or 800-3366-3052 (overseas), with conference passcode 2945338 followed by the number sign.

Quality assurance/quality control

The technical information contained in this news release has been prepared under the supervision of, and its disclosure has been reviewed by, the following who are deemed to be qualified persons under NI 43-101: Gary Simmerman, BSc, mining engineering, FAusIMM, Mercator's vice-president, Mineral Park, and Mike Broch, BSc, geology, MSc, economic geology, FAusIMM, the company's vice-president, exploration and evaluations.

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