Scorpio Mining Provides Exploration Update on its Projects in Mexico

TORONTO, July 15, 2011 /CNW/ --
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THE U.S./

TSX:SPM

TORONTO, July 15, 2011 /CNW/ - Scorpio Mining Corporation (TSX: SPM)
('Scorpio Mining' or the 'Corporation') is pleased to provide an update
on exploration activities at its projects in Mexico. The Corporation
controls over 29,000 ha in the Cosalá district, Sinaloa, which is host
to over 40 known exploration targets but is relatively unexplored by
modern techniques. In addition, Scorpio Mining holds two advanced,
high-grade silver properties in the Parral district, Chihuahua, that
are drill-ready.

Parviz Farsangi, President & CEO reports, 'Scorpio Mining benefits from
a very large land position in a relatively unexplored area, which has
proven to host economic deposits and contains an abundance of promising
early-stage exploration targets. The opportunity to advance our known
deposits and to make new discoveries is excellent. Our exploration
programs complement a determined effort to grow Scorpio Mining by
developing its own assets. We remain confident we have the projects and
the people to reach this next stage of success.'

Scorpio Mining's 2011 exploration and infill drilling program includes
surface and underground diamond drilling on multiple deposits/targets,
including:

Cosalá District

    --  10,500 m of underground drilling at the Nuestra Señora
        Ag-Zn-Cu-Pb mine.
    --  2,800 m of underground drilling at the La Verde Ag-Cu-Au mine.
    --  8,000 m of surface drilling at San Rafael and La Verde to add
        and upgrade mineral resources.
    --  5,000 m of surface drilling to test several early-stage
        Ag-Cu-Pb-Zn-Au exploration targets.

Parral Distict

    --  Up to 7,000 m of surface drilling at the La Revancha Ag and
        Tepozán Ag-Au projects.

More than 5,000 m of underground exploration and infill drilling have
been completed to date at the Nuestra Señora mine. Drill holes targeting new mineralization in the Santa Teresa
Extension zone have intersected visually mineralized skarn up to 40 m
south of the previously delineated mineralization. Drilling will also
target extensions to the Hoag zone and test for new mineralization
adjacent to the Hoag shear zone.

Surface exploration to the north of Nuestra Señora processing plant is having success in several areas,
including ground recently acquired from a subsidiary of Grupo Mexico.
Initial results report widespread anomalous gold and silver in chip
channel sampling at the Chilicotes and Santa Rita prospects, both of which are spatially associated with weakly magnetic
diorite; a common association of mineralization in the Cosalá district.
Both prospects are proximal to the El Cajón, San Rafael and La Verde
deposits, which are located within 20 km by road from the Nuestra
Señora processing plant.

Approximately 3,500 m of surface drilling is proposed for Chilicotes, located 2.4 km south of San Rafael. The prospect is a silicified
structural zone in brecciated volcanics that is up to 70 m wide and has
been traced over a 1.2-km strike length. Initial results of chip
channel sampling across the breccia zone has returned 0.434 g/t Au, 27
g/t Ag, 0.002% Cu, 0.04% Pb and 0.16% Zn over 34 m.

Santa Rita, 4.4 km southwest from San Rafael, is made up of northwest-trending
silicified structures in volcanics. Chip channel samples over 1-2 m
widths have been collected over approximately 200 m of exposed
mineralization, mainly from shallow underground workings less than 30 m
from surface. Highly anomalous silver assays returned in the 57 samples
collected were as follows: 39 samples assayed > 100 g/t, 18 samples >
300 g/t, 8 samples > 500 g/t and 3 samples > 1,000 g/t. Anomalous gold
assays in the same 57 samples included: 45 samples > 0.1 g/t, 26
samples > 0.3 g/t, 13 samples > 0.5 g/t and 3 samples > 1.0 g/t.
Mapping and sampling in the vicinity of the Santa Rita prospect has
also uncovered multiple mineralized showings extending along a 3-km
long northwest-trending corridor. Further work is planned to take this
promising area to the drilling stage.

Exploration has also uncovered several historical surface workings
southeast of the El Cajón Ag-Cu-Au deposit, presenting a new drill target as the southern
extension of El Cajón. Drilling of the El Cajón and its extension will
be incorporated into a future exploration program.

At the La Verde mine, underground drill stations are ready and the planned 2,800 m of
drilling will commence following the arrival and installation of
electrical cable for the drilling rigs, expected later this month. The
La Verde mine, which is currently dormant, historically produced 1.4
million tonnes grading 105-180 g/t Ag, 0.53-0.65% Cu.

In addition to the above exploration drilling in the Cosalá district,
the Corporation plans an 8,000-m surface drilling program that will
cover infill and extension drilling of the San Rafael and La Verde mineralization, with the objective of adding to and upgrading mineral
resources within these deposits.

Commencement of 7,000 m of surface drilling at the La Revancha and Tepozán projects in Parral, Chihuahua is pending the receipt of all permits.
Drilling at La Revancha will expand oxide mineralization currently
traced by drilling over a distance of 300 m and possibly encounter
higher-grade sulphide mineralization more commonly exploited in the
Parral district.  At Tepozán, drilling will test a previously undrilled
1.3-km long quartz vein system believed to be related to mineralization
in the Parral district.

Assay results from the various programs will be released once received
and compiled.

Scorpio Mining's Senior Exploration Geologist, Will Strong, B.S., P.G.,
is a Qualified Person for the Corporation's Mexico projects and has
reviewed the content of this release. All technical information for the
Corporation's Mexico projects is obtained and reported under a formal
quality assurance and quality control (QA/QC) program. Samples are
shipped to the ALS Chemex preparation laboratory in Hermosillo, Mexico
for drying, crushing and pulverizing. ALS Chemex, Hermosillo then sends
the pulps for assaying to ALS Chemex, Vancouver, an ISO 9001:2000
accredited facility. Details of the QA/QC program are available on the
Company's website at: www.scorpiomining.com.

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
exploration programs, 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