The plan is to submit the update to the App Store fairly soon, and it will be a free upgrade.
You may have to manually download again because we need to move the app to the Atlassian App Store account and Apple don't provide a seamless way to do that unfortunately, but we'll provide instructions if that has to be the case.
You can't use Mercurial 2.0.1 with SourceTree 1.2.x, you need to be using 1.3 or higher, this is due to some breaking changes in Mercurial 1.9/2.0 which affected some extensions.
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