Mercator Responds to Tyler Circular


    VANCOUVER, Nov. 27 /CNW/ - Mercator Minerals Ltd. ("Mercator") has
reviewed the Directors' Circular filed by Tyler Resources Inc. ("Tyler") in
response to the offer by Mercator to purchase all of the shares of Tyler and
is hereby responding to comments and clarifying certain information made in
Tyler's Directors' Circular. Mercator continues to believe that Mercator has
presented a strong offer that represents the best combination of low risk/high
return opportunities for Tyler's shareholders.

    Mercator's Offer

    On November 9, 2007, Mercator mailed an offer to all of Tyler
shareholders comprised of 0.113 of a Mercator share per Tyler share (the
"Offer"). Based on Mercator's closing share price on the Toronto Stock
Exchange as of November 23, 2007, the Offer represents a 46% premium to Tyler
shareholders relative to the last closing price of Tyler's shares prior to the
Offer. The consideration offered is equivalent to $1.03 per Tyler share
(almost identical to the $1.04 closing price of Tyler's shares on the TSX
Venture Exchange on November 23, 2007).

    Rationale for Approach to Tyler

    Mercator's initial, friendly, approach to Tyler was made on the basis
that the combination of Tyler's Bahuerachi property and Mercator's current and
developing copper-molybdenum production, strong balance sheet and proven
development team and represented a much lower risk scenario for Tyler than
going it alone, while still giving Tyler shareholders a significant premium
and considerable exposure to the upside potential of both sets of assets.

    Tyler Rejects Offer

    Mercator believes that the outright rejection by Tyler's Management and
Board of Mercator's earlier "friendly" offer, without due consideration and
without bringing the terms of the offer to the attention of Tyler
shareholders, did not serve Tyler shareholders well. Mercator elected to make
the Offer public so that Tyler's shareholders are provided the opportunity to
make their own decision.

    Tyler Recommends Rejection; Mercator Responds to Directors' Circular

    The Tyler Directors' Circular, filed November 23, 2007, sets out Tyler's
response to the Mercator Offer and recommends Tyler shareholders reject the
Mercator Offer. However, there are numerous omissions and short comings in the
Tyler Directors' Circular that require clarification, including the points set
out below:

    -   The Tyler Preliminary Economic Evaluation ("PEA") published
        November 8, 2007 states that the Bahuerachi project has an internal
        rate of return ("IRR") of 16.1% and a net present value ("NPV") of
        US$216 million (after tax) using an 8% discount rate and a long time
        copper price of US$1.50/lb. In the Directors' Circular, Tyler uses
        pre-tax numbers, which is not the norm in the industry and is
        potentially misleading to Tyler shareholders.

    -   Tyler's Directors' Circular represents the Bahuerachi resources as
        524,509,785 tonnes. However, Tyler's own PEA cut those previously
        disclosed resources in half, to 238,317,000 tonnes. Further, Tyler's
        reporting of mineral resources is not compliant with National
        Instrument 43-101.

    -   Tyler's Directors' Circular ignores the fact that the PEA forecasts a
        capital cost of more than US$619 million, approximately five times
        Tyler's market capitalization of $119 million at November 23, 2007.

    -   Tyler's Directors' Circular makes reference to two companies to
        justify possible share price appreciation in the future - Frontera
        Copper Corp. and Sherwood Copper Corp. Four major differences are
        worth mentioning:

        1.    Frontera and Sherwood have seasoned, experienced management and
              boards of directors that have financed, developed, constructed
              and operated mining projects. None of Tyler's management or
              Board have ever financed, developed, constructed or operated a

        2.    Prior to feasibility, Frontera as well as Sherwood had tight
              share structures. Frontera had approximately 41.2 million and
              Sherwood had approximately 39.0 million fully diluted shares
              outstanding. Frontera currently has approximately 65.9 million
              and Sherwood currently has approximately 56.8 million fully
              diluted shares outstanding. The share dilution from pre-
              financing to current for Frontera was 60% and for Sherwood was

        3.    The capital costs for both Frontera's and Sherwood's projects
              were approximately US$100 million, and Mercator's Phase I
              Expansion approximately US$127 million as compared to the US
              $619 million capital estimate for the Bahuerachi project. This
              difference alone makes the comparison invalid and suggests
              considerable dilution is likely forthcoming to Tyler's

        4.    In contrast, Tyler has 133.9 million fully diluted shares
              outstanding and an estimated US$619 million capital expenditure
              program to be funded.

    -   Given the differences set out above, there is a real possibility that
        Tyler may never be able to fund the Bahuerachi project. Mercator is
        not aware of any junior Canadian exploration company, with no
        development and operating experience and a large number of shares
        already issued, that has been able to complete a project of this

    Mercator recommends that Tyler shareholders tender to the Offer for the
following reasons:

        -  Experience: Mercator has one of the most experienced mining teams
           in the industry, each of the senior management having over
           20 years of mine finance, development, construction and operations
           experience. Mike Surratt, Mercator's President, has over 25 years
           of production experience and was responsible for the construction
           and operation of the Rabbit Creek gold mine and spent over
           10 years with Santa Fe Pacific Gold, and was responsible for
           financing, development and operation of two other significant
           Canadian mining companies. Mercator's VP of Engineering was the
           Chief Operating Officer with Frontera Copper and helped guide
           their Mexican project (Piedres Verde, located only approximately
           100 km from Bahuerachi) through feasibility, financing and
           construction. Mercator's board members also bring significant
           mining and construction experience; two are Presidents of
           successful mining companies - Sherwood Copper Corp. and Kingsgate
           Gold Ltd.

        -  Premium: By accepting the Mercator Offer, Tyler shareholders will
           lock in the premium to the value of Tyler shares prior to the
           Offer. Mercator believes that the Mercator Offer is the only
           apparent reason that Tyler shares are currently trading over

        -  Upside: By accepting the Mercator Offer, Tyler shareholders would
           have immediate benefit to the upside exposure to Mercator's assets
           just as Mercator is about to substantially increase copper
           production and add significant molybdenum production (at a time
           when molybdenum is trading over US$30 per pound).

        -  Reduced Volatility: By accepting the Mercator Offer, Tyler
           shareholders would move away from the speculative and highly
           volatile trading patterns typical of junior explorers on the TSX
           Venture Exchange and into the steady value expansion and growth of
           a liquid, Toronto Stock Exchange-listed producer. Tyler's shares
           are currently more than twice as volatile as Mercator's shares.
           The presence of hedge funds owning 16% or more of Tyler's shares
           has introduced a substantial risk of increased volatility of the
           Tyler shares.

        -  Less Dilution: Tyler has 114 million shares issued and
           outstanding, 134 million on a fully diluted basis, prior to
           commencing any substantial development expenditure on the
           Bahuerachi project. Using Tyler's examples of Sherwood and
           Frontera, the share dilution from pre-financing to current for
           Frontera was 60% and for Sherwood was 46% for two US$100 million
           projects. The possibility of dilution for a US$619 million project
           could be significantly greater compared to these two
           US$100 million projects. On the other hand, Mercator anticipates
           that the revenues generated from the expanded Mineral Park
           operations should be sufficient to develop and construct the
           Bahuerachi project.

        -  No Alternative Transaction: Tyler has had now over 40 days to
           pursue an alternative transaction. If, as and when an alternative
           transaction surfaces, Mercator will respond accordingly.

        -  Attainable Conditions: The Mercator Offer has readily attainable
           and industry standard conditions.

    Tyler shareholders should also consider and be informed that:

        -  Mercator's initial friendly offer to Tyler was made at a higher
           ratio because it was to be friendly and allow detailed due
           diligence by both companies, contain industry standard outs to
           Mercator benefit and incorporate deal protection aspects such as
           break fees, "non-compete", "no shop" and other provisions that
           could have warranted a higher price for a "friendly" deal. By
           rejecting Mercator's original offer, Tyler's board and management
           have reduced the consideration Mercator is willing to pay, given
           the lack of the aforementioned provisions.

        -  Tyler did not form a Special Committee, nor did they hire
           financial or legal advisors, to evaluate the initial Mercator
           offer. That initial offer was turned down without discussion,
           negotiation or a counter proposal from Tyler. Further, Tyler did
           not disclose the substantial offer and potentially material event
           to its shareholders until Mercator announced the Offer publicly.

        -  Having rejected the initial friendly offer and now the Offer,
           Tyler's board and management seem determined to resist an offer
           that clearly presents considerable opportunity for and reduced
           risk to its shareholders, especially given management's lack of
           experience required to advance the Bahuerachi project to
           production over the next several years.

        -  The risks outlined by Mercator in its Offer and Circular
           demonstrate Mercator is willing to openly and plainly disclose to
           all shareholders the inherent business risks.

        -  The Tyler Directors' Circular discloses a fairness opinion
           prepared for Tyler by their financial advisors, CIBC World Markets
           Inc., however, neither the Director's Circular or Tyler's news
           release discloses any of the assumptions made in that fairness


    By tendering to and accepting the Mercator Offer, Tyler shareholders
would become shareholders of a cash generating, growing, copper - molybdenum
producer, with approximately 100 million shares fully diluted (33 million
fewer than Tyler currently has outstanding on a fully diluted basis without
even a pre-feasibility study completed). Moreover, Tyler shareholders would
enjoy the benefits of an experienced, seasoned management team, a positive
cash flowing mining operation, significant near-term increases to copper and
molybdenum production, while retaining exposure to the Bahuerachi project that
could be developed and built largely from internal cash flow, with limited
additional dilution to the combined entity.

    Mercator Minerals Ltd.

    Mercator is a copper producer that owns and operates the Mineral Park
copper mine in Arizona, with a corporate strategy focused on maximizing the
production potential of the Mineral Park copper-molybdenum deposit and growing
through mergers and acquisitions. The Company has filed a technical report
dated December 29, 2006, supporting the expansion of its Mineral Park
copper-molybdenum mine into a 25,000 tpd operation (Phase I) and a 50,000 tpd
operation (Phase II). At full capacity, expected to be reached mid 2009, the
Mineral Park mine average annual production during the first 10 years is
forecast to be approximately 56.4 million pounds of copper,
10.3 million pounds of molybdenum and 600,000 ounces of silver.

    On Behalf of the Board of Directors


    Per: "Michael L. Surratt"
    Michael L. Surratt,

    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. 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, 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, 2006 on the
SEDAR website at

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

For further information:

For further information: Marc LeBlanc, VP Corporate Development and
Corporate Secretary, Tel: (604) 981-9661 or (604) 716-5582; Fax: (604)
960-9661; Email:

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Mercator Minerals Ltd.

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