Scorpio Mining Maintains Strong Production Levels in Second Quarter 2011

TORONTO, July 13, 2011 /CNW/ --
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

TSX:SPM

TORONTO, July 13, 2011 /CNW/ - Scorpio Mining Corporation (TSX:SPM)
('Scorpio Mining' or the 'Corporation') is pleased to report a second
strong production quarter in 2011 ('Q2 2011'), representing significant
increases over Q2 2010 and maintaining production levels attained in
the first quarter of 2011.

Parviz Farsangi, President and CEO, reports: 'Scorpio Mining's
production in the second quarter of 2011 continued to demonstrate solid
performance at our Nuestra Señora operations. We set a record for
tonnes processed and lead produced, while silver and zinc approximated
last quarter's record production.  During the quarter we eliminated our
debt using operating cash flows and are now ideally positioned to
advance the growth initiatives announced in our June 27, 2011 news
release, which include increased processing capacity, optimization of
existing resource base and aggressive exploration of our extensive land
holdings in Mexico.'

Second Quarter Production - 2011

    --  Mill throughput for Q2 2011 was 128,674 tonnes; an increase of
        86% compared to 69,138 tonnes processed in Q2 2010.

    --  Recovered silver for Q2 2011 totalled 365,692 ounces; an
        increase of 95% compared to 187,496 ounces recovered in Q2
        2010.

    --  Recovered zinc for Q2 2011 totalled 5,588,179 pounds; an
        increase of 95% compared to 2,859,765 pounds recovered in Q2 of
        2010.

    --  Recovered copper for Q2 2011 totalled 438,529 pounds; an
        increase of 17% compared to 374,904 pounds recovered in Q2
        2010.

    --  Recovered lead for Q2 2011 totalled 1,871,789 pounds; an
        increase of 103% compared to 923,700 pounds recovered in Q2
        2010.

    --  Recovered silver equivalent ounces* for Q2 2011 totalled
        637,157 ounces; an increase of 86% compared to 342,943 ounces
        recovered in Q2 2010.

* For comparative purposes the metal prices used to calculate silver
equivalent ounces recovered are based upon the approximate weighted
average metal prices realized throughout Q2 2011 and are as follows:
lead at US$1.13 per lb; zinc at US$1.00 per lb; copper at US$4.10 per
lb and silver at US$35 per oz.

While comparisons to the second quarter of 2010 show large production
increases, it should be noted that Q2 2010 suffered from a significant
throughput reduction due to a ball mill failure.

Performance of Q2 2011

Mining during 2011 has diverged from the budgeted sequence as
difficulties were encountered with the availability of some mobile
mining equipment and the delivery of equipment to assist with the
back-filling of stopes was also delayed.  These issues are being corrected and high-density definition drilling has mitigated
much of the impact on production.  Notwithstanding that, the copper
grade in some of the current mining areas has been lower than projected from drilling.

At the end of Q2 2011, zinc and silver production was significantly
ahead of forecast ( 22% and 7%, respectively), whereas lead and copper
were -13% and -25% respectively behind forecast. Contingent plans are
currently being evaluated to recover the year-to-date deficit of lead
and copper; however, the overall objective of the Corporation is to
maximize silver production.

Scorpio Mining's President and CEO, Parviz Farsangi, MEng, MBA, PhD,
PEng, 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 production,
objectives, strategy, mine operations, exploration, future performance
and forecasts, our management team, and plans. 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 Nuestra Señora and La Verde projects, risks related to
international operations, construction delays and cost overruns,
equipment breakdowns, 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 30,
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