Scorpio Announces Fourth Quarter and Year-End Financial Results for 2010

TORONTO, April 1 /CNW/ --
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

TSX:SPM

TORONTO, April 1 /CNW/ - 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

                                                                                

                         Q4 2010       Change from       Full Year        Change
                                         Q4 2009           2010          from Full
                                                                         Year 2009

Revenue                     $13.2       Up      87%           $34.2     Up      76%
                          million                           million

Mine operating               $5.6       Up      60%            $9.1     Up      24%
earnings                  million                           million

Gain on dilution                                                              
and
  deconsolidation           $0.06
of Scorpio Gold           million                       $20 million                

Income tax                  $12.4       Up      20%           $10.9     Up       6%
recovery                  million                           million

Net earnings                $16.6       Up      36%           $32.5     Up     147%
                          million                           million

Earnings per                $0.09     Down      18%           $0.19     Up      58%
share

Weighted average                                                              
number of
  shares
outstanding           192,206,685       Up      69%     171,078,675     Up      52%

Adjusted EBITDA (            $7.2                            $13.3            
(1))                      million       Up     154%         million     Up      71%

Cash operating           US$44.12       Up      24%        US$43.59     Up      10%
cost per tonne (
(1))

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 www.scorpiomining.com and on SEDAR at www.sedar.com.

Further information is available on the Corporation's website at: www.scorpiomining.com. 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.

ON BEHALF OF SCORPIO MINING CORPORATION

Parviz Farsangi


President & CEO

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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Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: rkaiser@scorpiomining.com