Mercator Minerals Ltd.

Mercator Minerals Ltd. (TSX: ML) is rapidly approaching completion of its initial phase of expansion at its Mineral Park Mine in northwest Arizona. Phases I and II were designed to increase production at Mineral Park to an average of 56.4 million pounds of copper, 10.3 million pounds of moly, and 600,000oz. of silver on an annual basis over the first 10 years of the 25 year mine life. Increased production from Phase I at 25,000 tpd is scheduled for the second quarter of 2008, with full production from the second phase increasing to 50,000 tpd, scheduled to commence approximately 9 months later, in the first quarter of 2009. Catalyst’s for appreciation in the next 12 months include:

• Sustained/increasing copper, moly, and silver prices
• Full commercial production from Phase I
• Construction decision on Phase II

The Mineral Park Mine is presently producing about a million pounds of cathode copper per month. Phase I is fully financed and Phase II should be financed out of cash flow. The Mineral Park Mine is unhedged and fully exposed to current copper, molybdemum, and silver prices. We are initiating coverage of Mercator with a Buy rating and 12– month price target of $16.00 per share.

Investment Thesis
Mercator Minerals Ltd. (the “Company” or “Mercator”) (TSX: ML) is rapidly approaching completion of the first of two expansion phases of its wholly owned Mineral Park copper and high-grade molybdenum (moly) mine located in northwest Arizona.

Upon completion of the second phase of the expansion, Mineral Park should rank among the largest open pit copper/moly mines in North America (along with Baghdad, Bingham Canyon, Sierrita, and Mission). With a significant moly component, it would appear that it will be among the largest copper/moly operations in the world, and the second largest moly operation in North America.