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Apr 01, 2011
Scorpio Announces Fourth Quarter and Year-End Financial Results for 2010

Toronto, April 1, 2011 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio" or the "Corporation") is pleased to announce its financial and operating results for the fourth quarter ("Q4") and the year ended December 31, 2010.

Performance Highlights:

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Q4 2010

Change from

Q4 2009

Full Year


Change from

Full Year 2009

Revenue $13.2 million Up 87% $34.2 million Up 76%
Mine operating earnings $5.6 million Up 60% $9.1 million Up 24%

Gain on dilution and deconsolidation of Scorpio Gold

$0.06 million  $20 million
Income tax recovery $12.4 million Up 20% $10.9 million Up 6%
Net earnings $16.6 million Up 36% $32.5 million Up 147%
Earnings per share $0.09 Down 18% $0.19 Up 58%
Weighted average number of shares outstanding 192,206,685 Up 69% 171,078,675 Up  52%
Adjusted EBITDA(1) $7.2 million Up 154% $13.3 million Up 71%

Cash operating cost per tonne(1)

US$44.12 Up 24% US$43.59 Up 10%

Parviz Farsangi, President and Chief Executive Officer comments, "We are very pleased with our 2010 financial results, in particular with the fourth quarter which forms the basis for an improved 2011 forecast. In 2011, the Corporation aims to produce nearly 50% more silver equivalent ounces than in 2010 and also carry out an aggressive exploration program. We believe these results place the Corporation among the best performing silver producers with significant base metal by-product credits in Mexico. I thank our team for its focus and commitment and for setting the stage for our next level of success, including plant expansion."

Highlights for the Year and Fourth Quarter Ended December 31, 2010, and Subsequent Events:
  • Mine operating earnings were $9,125,192 for the year ended December 31, 2010 compared to $7,334,969 in 2009.
  • Net earnings were $32,533,705 or $0.19 per share for 2010 compared to $13,176,328 or $0.12 per share in 2009.
  • Adjusted EBITDA(1) were $13,324,272 for the year ended December 31, 2010 compared to $7,835,886 in 2009.
  • Nuestra Señora cash operating costs(1) were US$43.59 per tonne in 2010 compared to US$39.47 per tonne in 2009.
  • Mine operating earnings were $5,649,680 for Q4 2010 compared to $3,538,008 in Q4 2009.
  • Net earnings were $16,550,542 or $0.09 per share for Q4 2010 compared to $12,486,886 or $0.11 per share in Q4 2009. The decrease in earnings on a per share basis reflects the increase in number of shares outstanding from the acquisition of Platte River Gold Inc. ("Platte River").
  • Underground ore production for the year increased from 141,640 tonnes in 2009 to 351,874 tonnes in 2010; an increase of 148%.
  • The average monthly plant throughput increased from 17,527 tonnes in 2009 to 31,768 tonnes in 2010; an increase of 81%. During Q4 2010, the Nuestra Señora plant processed 112,783 tonnes at an average grade of 0.91% lead, 0.37% copper, 2.01% zinc and 97 g/t silver. As of December 31, 2010, surface ore stockpiles amounted to 25,239 tonnes.
  • For the year ended December 31, 2010, the plant processed 381,215 tonnes at an average grade of 1.02% lead, 0.32% copper, 2.04% zinc and 98 g/t silver, compared to the year ended December 31, 2009 where the plant processed 210,324 tonnes at an average grade of 1.33% lead, 0.43% copper, 2.60% zinc and 105 g/t silver.
  • For the year ended December 31, 2010, contained metals produced in concentrates consisted of 6.159 million pounds of lead, 1.666 million pounds of copper, 14.104 million pounds of zinc and 910,352 ounces of silver.
  • On April 1, 2010, the Corporation completed the acquisition of Platte River, a private company with an advanced stage exploration property near the Nuestra Señora mine, for consideration of approximately 74.8 million shares of Scorpio.
  • On June 30, 2010, the Corporation reached a new one year concentrate offtake contract under which the Corporation agreed to sell 450 to 600 wet metric tonnes ("wmt") of lead concentrate per month.
  • On December 21, 2010, the Corporation reached agreement on sales terms for zinc and copper concentrates through to the end of June 2011. Monthly zinc concentrate production is estimated to be between 1,400 and 1,800 wmt. Monthly copper concentrate production is estimated to be between 400 and 700 wmt.
  • The Corporation received the required approval to extend the electrical line from the Nuestra Señora processing plant site to the Nuestra Señora mine in October 2010. An electrical sub-station was also constructed at the mine site to eliminate the mine's dependence on diesel-generated power and reduce total mine operating costs. The mine was energized from the electrical grid on January 19, 2011.
  • The Corporation re-negotiated and extended a contract with its offtake agent to continue to assist in the sales of the concentrates for the next five years.
  • On March 10, 2010, Scorpio Gold completed a $12.5 million private placement financing, acquired a 70% interest in the Mineral Ridge Property in consideration for a cash payment of US$3.75 million and issuance of 7,824,750 of its common shares, and acquired a net smelter return royalty affecting certain areas of the Mineral Ridge Property for US$3 million to enhance the economics of the project. As a result of these transactions, Scorpio Mining's ownership interest in Scorpio Gold decreased from approximately 75% to approximately 38% and the Corporation determined it no longer controlled the operations of Scorpio Gold. In October 2010 and January 2011, Scorpio Gold closed debt and equity financings amounting to $US8 million and $11.6 million, respectively.
  • On March 9, 2011, the Corporation announced an updated mineral resource and reserve estimate at its Nuestra Señora mine. The proven and probable reserves increased to 2.764 million tonnes, providing an estimated mine life of six years.
  • On March 24, 2011, the Corporation sold approximately 8.1 million of the shares it held in Scorpio Gold Corporation for proceeds of $5,172,695. Following this transaction, Scorpio Mining still holds approximately 19.8 million shares in Scorpio Gold Corporation representing 19.6% of Scorpio Gold issued and outstanding shares.
  • Revenue from metal payable for the year totalled $42,230,644 (2009, $25,584,669) and was distributed as follows: silver 45% (2009, 43%); zinc 28% (2009, 29%); lead 14% (2009, 15%); copper 13% (2009, 13%).
(1)This is a non-GAAP performance measure; please see Non-GAAP Performance Measures section in the Corporation's MD&A.;

This press release should be read in conjunction with the Corporation's audited consolidated financial statements for the years ended December 31, 2010 and 2009 and the Corporation's management's discussion and analysis of the financial condition and results of operations of the Corporation for the year ended December 31, 2010, which are available on the Corporation's website at and on SEDAR at

Further information is available on the Corporation's website at: Scorpio Mining's Mexico Country Manager, John A. Sadek, B.Eng. (Mining), MAusIMM, is a Qualified Person for the Corporation's Mexico projects and has reviewed the content of this release.


Parviz Farsangi
President & CEO

For further information contact:
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)

This news release includes certain statements that may be deemed "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the Corporation's operations, plans, estimates, expectations, forecasts, objectives, predictions and projections of the future. Generally, these forward-looking statements can be identified by the forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "projects", "intends", "anticipates", or "does not anticipate", or "believes", or "variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might", or "will" be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Scorpio Mining Corporation to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and development and operation of the Corporation's projects in Mexico, risks related to international operations, construction delays and cost overruns, the actual results of current exploration, development and construction activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of silver, zinc, copper, lead and gold, risks relating to completing acquisition transactions as well as those factors discussed in the sections relating to risk factors of our business filed in Scorpio Mining Corporation's required securities filings on SEDAR, including its Annual Information Form dated March 29, 2011. Although Scorpio Mining Corporation has attempted to identify important factors that could cause results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended.

There can be no assurance that any forward-looking statements will prove accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Scorpio Mining Corporation does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
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