Merc Enters Into Binding Option Agreement to Acquire Gold Property in Northwest Territories

Merc International Minerals Inc. ("Merc") (TSX VENTURE:MRK) announced today it
has entered into a binding option agreement with Ursa Polaris Developments
Corporation ("Ursa") to acquire 15 mining leases and 3 mining claims. The
agreement encompasses multiple properties within the Indin Lake Greenstone Belt,
directly west and northwest of Merc's Damoti Lake Gold property.


To view the Property location map, Indin Lake area map, please visit the
following link: http://media3.marketwire.com/docs/110mrk.pdf 


Merc President & CEO, David Wiley, commented, "We are pleased to announce the
first component of Merc's Northwest Territories gold exploration property
expansion program. We believe that this promising area has been under-explored,
and the option agreement with Ursa enables us to establish a significant
regional presence with multiple exploration properties all located in the heart
of a historic gold camp. We intend to continue growing our Northwest Territories
exploration property portfolio and rapidly advance existing properties through
exploration."


Option Agreement with Ursa

Under the agreement with Ursa, Merc has optioned 15 contiguous mining leases
(the Indin Lake leases) and 3 separate mining claims (Treasure Island, Laurie
Lake, and Barker-Vidie.). 


Option payments are staged where Merc has the option to make the payments in
cash or common shares, subject to receipt of requisite approval including the
approval of the TSX Venture Exchange should Merc elect to issue common shares.
Upon making the final payment Merc will own 100% of the mining leases and mining
claims outright. 


On signing the agreement Merc paid $150,000 in cash. The balance of the payments
totals $600,000 and is payable over the next three and a half years in cash or
common shares at Merc's option as follows: 




----------------------------------------------------------------------------
Due Date                                                            Payment
----------------------------------------------------------------------------
on or before July 31, 2012                                         $100,000
----------------------------------------------------------------------------
on or before July 31, 2013                                         $250,000
----------------------------------------------------------------------------
on or before July 31, 2014                                         $250,000
----------------------------------------------------------------------------



Property Highlights

The Indin Lake area is one of the few remaining under-explored historic gold
camps in Canada. Several gold deposits and showings lie within this belt, the
most significant being the formerly producing Colomac open pit mine, located 12
kilometres southeast of Treasure Island. 


The 15 Indin Lake mining leases are located 11kilometres northwest of the Damoti
Lake Gold property and cover a 6.5 kilometre section of a regional
north-northwest mineralized shear zone. Three main gold deposits have been
identified in association with this shear zone, the North Inca, Diversified, and
Lexindin deposits. Exploration shafts and limited underground development were
completed on the North Inca and Diversified deposits in the 1940's to explore
multi-stage quartz veins characterized by high-grade gold mineralization. All
deposits under the Indin Lake leases are open latterly and vertically suggesting
the possibility that they may converge into a single large system.


Two of the mining claims optioned under the agreement, the Treasure Island gold
deposit and the Laurie Lake gold showing, lie along a folded and sheared
sedimentary/volcanic rock contact within the same belt of Archean greenstone
rocks as the past producing Colomac Gold Mine located 10 kilometres south. 


Indin Lake Mining Leases

North Inca Deposit

The North Inca deposit consists of 3 parallel, north striking quartz veins of
variable widths. Historical development on the site was limited to vertical
depths of less than 100 metres, leaving the deposit open to exploration at
depth. Moreover, the en-echelon nature of the vein sets indicates the potential
for the deposit to continue along strike as well. Six historic holes were
drilled 500 metres north of the North Inca deposit testing quartz veining
believed to be the deposit's northern extension. Assay results returned an
average grade of 16.20 g/t gold over an average width of 1.4 metres. 


Historical mineralization at North Inca includes a 183 metre section of vein
within the shaft area that averaged 15.08 g/t gold over 1.5 metres between
depths of 48.7 metres to 91.4 metres. Historical surface trenching also returned
high-grade mineralization including 25.7 g/t gold over 4 metres.


Diversified Deposit

The Diversified deposit shares similar characteristics to the North Inca deposit
and is located approximately 1.2 kilometres to the north. The deposit's "Main
Zone" has been traced for 220 metres on both the 54 metre and 145 metres levels,
with an average grade of 9.60 g/t gold over 1.67 metres on the 54 metres level,
and 17.30 g/t gold over 1.61 metres on the 145 metres level. A historical hole
drilled in the vicinity of the shaft area intersected 25.71 g/t gold over 4
metres, attesting to the high-grade nature of the deposit's mineralization.


Lexindin Deposit 

The Lexindin Deposit is located approximately 1.3 kilometres north of the
Diversified shaft. Tensional, en-echelon, quartz veins lying obliquely to
branches of the main shear zone make up the mineralized zones at Lexindin. Veins
dip steeply north within the 40 metre to 60 metre wide shear zone and open-up
laterally with increased depth. Exploration drilling has been limited to less
than 150 metres vertical depth with historical intersections of 113.80 g/t gold
over 3.05 metres, 18.85 g/t gold over 1.53 metres, and 22.97 g/t gold over 2.37
metres.


Treasure Island Deposit and the Laurie Lake Showing

Treasure Island Deposit

The Treasure Island gold deposit consists of at least four stacked mineralized
zones (North, Central, South and New South) located at the volcanic sedimentary
rock contact in association with a felsic dyke; a similar mineralized and
geological environment to that of the Colomac Mine located 10 kilometres south.
The North Zone is 200 metre long and 2.6 metres wide with a grade of 7.88 g/t
gold to a depth of 55 metres. The 130 metre long Central Zone occurs at the
northern contact of the felsic dyke, 50 metres south of the North Zone.
Historical reports describe the zone as having a minimum depth of at least 100
metres with an average grade of 20.91 g/t gold. The South Zone, which is the
principle gold bearing zone, lies about 20 metres south of the felsic dyke. As
with the North Zone, the South Zone mineralization is characterized by an
increase in the amount of quartz along with minor pyrite, pyrrhotite,
chalcopyrite, sphalerite and galena.


Laurie Lake Showing

The Laurie Lake gold showing is located 3 kilometres southwest of the Treasure
Island deposit and lies along the same sedimentary/volcanic rock contact. Five
diamond drill holes intersected stacked mineralized zones similar to Treasure
Island, with high-grade assays ranging from 4.11 g/t to 12.34 g/t gold.
Historical trench samples range from trace to 73.15 g/t gold over 1.8 metres.
Both Laurie Lake and Treasure Island point to the untested potential of this
mineralized contact.


About Merc

Merc is a Canada-based exploration-stage company focused on acquiring and
developing gold mineral properties in the Northwest Territories. The company's
flagship asset is the Damoti Lake Gold property, located 200 kilometres north of
Yellowknife, Northwest Territories. 


Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking
statements that involve substantial known and unknown risks and uncertainties.
These forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of Merc, including, but
not limited to, the impact of general economic conditions, industry conditions,
volatility of commodity prices, risks associated with the uncertainty of
exploration results and estimates, currency fluctuations, dependency upon
regulatory approvals, the uncertainty of obtaining additional financing and
exploration risk. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance should not
be placed on forward-looking statements. This press release is not, and is not
to be construed in any way as, an offer to buy or sell securities in the United
States.
Merc International Minerals Inc. (TSXV:MRK)
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