Company Information for Scorpio Mining Corporation

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Company Statement

Scorpio Mining Corp. is a silver-based company with a focus on Mexico.  The Company’s flagship asset is the Nuestra Senora silver property.

Over $70 million has been invested to date in surface and underground development, resource definition, and mill purchase at Nuestra Senora.  Asarco was a previous owner and explorer of the property.  The company is poised to commence commercial production at the rate of 1,000 TPD in 2008.  At the Nuestra Senora property, the former exploration company that mined the area developed the seventh through to the tenth levels, but didn’t extract any resources from these levels before shutting the mine down.  Scorpio controls a land position of over 16,000 hectares with no underlying royalties or payments.  The company is now the largest employer in the village of Cosala with over 225 employees.

Over 70% of its shares are owned by major financial institutions and the company is in strong financial shape.  Currently, there are approximately 112.1MM shares issued and outstanding and 138.8MM on a fully diluted basis.

Company Diagram

Current Operations

The Nuestra Senora Project
In early 2005, focus shifted to the underground development and definition drilling of the adjacent and much larger Nuestra Senora deposit. The program has been highly successful, resulting in the discovery of two large mineralized zones (Hoag and Sept 9) adjacent to the main Nuestra Senora Deposit and other high-grade lenses (North and South) peripheral to its extensions.

The current understanding of the mineralized zones and their relation to other deposits in the area is that a series of stacked thrust faults provided the main conduit for mineralizing fluids. Subsequent deformation along the thrust faults created dilational zones, which provided wider structural traps for the emplacement of mineralization.

The drill intersections and assay results to date demonstrate tremendous upsize potential for the project. The Hoag and Sept 9 zones do not outcrop at surface but are situated between the Nuestra Senora deposit and the Santo Domingo and Santa Teresa deposits, all of which have surface expressions. Management believes there is excellent potential to find other such "blind" (unexposed) mineralized bodies within the immediate area.

The Company has developed a model on the structural and mineralizing controls to mineralization and is successfully building tonnage at very low exploration cost.

Caribou
The company engaged independent Qualified Person, Guy Mac Gillivray, PGeo, to compile all of the available underground and drill-hole data on the property and prepare a resource estimate. The Inferred Resource estimate using uncut gold assays is 350,305 tonnes grading 8.41 g/t gold (94,763 oz gold) or 12,285 grams of gold per vertical metre. Using a statistical cut-off for gold of 47 g/t, the Inferred Resource for the property is 350,305 tonnes grading 5.83 g/t gold (67,425 oz gold) or 8,710 grams of gold per vertical metre.

The resource estimate was completed using Surpac Vision software and employed the polygonal resource method. Vertical sections were cut at 12.5 metre intervals over the length of the mineralized zone and polygons were drawn around mineralized intervals using a 1.0-g/t cut-off. Mineralized polygons were colour-coded and wire framed together to produce a model of the deposit. Volume, tonnage and grade calculation were completed in Surpac using the assay database from past underground sampling and drilling programs. The estimate includes auriferous zones from surface to 250 metres depth. Grade calculations were compiled using weighted averages from a minimum of three and maximum of 15 samples. Volumes for the polygons were calculated using Surpac Vision software and tonnages were determined using a specific gravity of 2.65. Due to the nugget effect and poor grade continuity at 25-metre drill spacing that is typical of Meguma gold deposits, the estimate was placed in the inferred resource category.

Cochrane Hill
In June 2007, the Cochrane Hill property was optioned to Australian-based Atlantic Gold NL (Atlantic). Under the terms of the agreement, once Atlantic has completed expenditure of $4.75 million on exploration and development within 4 years, potentially extendable for a further 2 years, and has made aggregate cash payments of C$100,000 to Scorpio Gold, then at Scorpio Gold's election, Atlantic will have earned either a 60% joint venture interest (with Scorpio Gold retaining a 40% joint venture interest) or a 100% interest subject to a 20% free carried interest retained by Scorpio Gold. Atlantic may withdraw from the option at any time. The 53 claims held under option with the original property owner remain subject to a 3% net smelter return royalty.

Lac Arseneault
The Lac Arseneault property is located in Bonaventure County, 36 kilometres north of the town of Paspebiac on the south coast of the Gaspe Peninsula, Quebec. The property is easily accessed via paved highway and logging roads. Supplies, services and manpower are readily available in the communities along the southern shore of the Gaspesie.

Scorpio Gold has the option to acquire a 100% interest in 30 contiguous mineral claims encompassing 480 hectares subject to a two percent Net Smelter Return royalty. The royalty may be purchased subsequent to the exercise of the option agreement for a cash payment of $1,000,000 for each 1%, or $2,000,000 in total. The Company has no outstanding work or cash payment commitments and Scorpio can vest a 100% interest in the property by issuing the balance of 50,000 treasury shares to the underlying property owner. Under the terms of the option agreement, the 50,000 shares are due upon acceptance by the TSX Venture Exchange of a technical report that provides a recommendation for further work to be undertaken. In addition, Scorpio staked and wholly owns an additional group of 16 claims located five kilometres east of the main property.

Geographical Spread

Board of Directors and Key Management

Peter Hawley, Eng, BSc, PGeo, Director, Chairman, CEO

The founder of the Company with over 25 years in the mining related industry that spans grassroots exploration through to development and production. Worked extensively as a consultant to a large number of intermediate and senior mining companies including Teck Corp, Noranda Inc, Placer Dome and Barrick Gold Corp plus consulting to banks and financial institutes for investments, mining mergers and acquisitions Experienced in the private and public sector in mining financing and corporate administration and has raised over $100 million for mining.

Roger D. Scammel PGeo, Director, President

Has over 35 years experience in the mining and exploration industry. He was Manager of Teck Corp’s Mexican subsidiary, Mineral Teck S.A. de C.V. from 1992 to 2002. He is credited with the 72 million tonne San Nicolas VMS deposit and the El Limon gold skarn both in Mexico. Running operations for over 20 years in a Senior Management Position.

Gilbert Comtois, BAA, CA, Chief Financial Officer

Mr. Comtois joined as the Company's controller in July 2006 and became Chief Financial Officer in September 2007. Prior to joining Scorpio, he was a Senior Manager of Deloitte & Touche in Rouyn-Noranda, where he performed all financial requirements for various mining clients including Richmont Mines and McWatters Mines.

Paul Bonneville. P. Eng., Officer, Vice President Mining

Has over 25 years experience in the mining industry. Past Manager for Dumas Contractors looking after the Lapa, Goldex Mines of Agnico Eagle and Casa Berardi Mine of Aurizon Mines. 1986 – 2004 partner of Ross – Finlay Mining Contractors where he managed multi-million dollars projects world wide. His expertise lies in shafts, ramps, production, planning, budget management, designing mining methods, equipment and supervision of mining personnel.

Robert Bryce, P. Eng, MBA, Director

Has over 40 years experience in the mining industry. Past Vice president of Mining Operations for Aur resources Inc, where he was in charge of the development and construction of the 4,000 tonne-per-day Louvicourt base metal mine and the past General manager of BHP Billiton’s 7,500 tonne-per-day Selbaie Mine, both in Quebec.

James Henderson, CA, Director

More than 20 years experience in the emerging company market and is the founder and present Managing Director of Australian-based Transocean Securities Pty limited and the founder of Focal Management Pty Limited. He has been a team leader in mergers, acquisitions, dispositions, takeovers and raising capital in Singapore, Australia, Canada, the USA and the UK.

Lisa Riley, BA, Director

Past Vice President and Director of TD bank in London, UK and past Vice President of RBC Capital Markets, London, UK. Prior to these positions she was a Bank Analyst and Vice President with Lehman brothers Inc. of New York, USA.

Neil S. Seldon, Director

Mr. Seldon is a graduate of the Royal School of Mines in London and began his career working with metal merchants in London, including time with a ring-dealer on the London Metal Exchange.

Janet Horbulyk, Corporate Secretary

Janet Horbulyk has twenty-five years of experience with securities regulations including seven years with the listings department of the Vancouver Stock Exchange.

Company Address 511 - 475 Howe Street Vancouver, Canada Canada V6C 2B3 Telephone: 819-825-7618 Facsimile: 819-825-0977 Email: scorpio[at]scorpiomining.com Website: http://www.scorpiomining.com

Capital Shares outstanding: 112,123,069 common shares Fully diluted: 138,827,450 common shares

Related News

04/03/08 - Scorpio Mining Will Be A Highly Profitable Polymetallic Producer by Mid Year
18/04/07 - Scorpio Mining Only Months Away From Production In Mexico

Most Recent Statement

06/10/08 - Scorpio Continues to Increase Lead-Zinc Concentrate Production at Nuestra Senora Project, Mexico
08/09/08 - Scorpio’s Drilling of the North West Main Zone
03/09/08 - Scorpio Provides Operations Update on Nuestra Senora Project, Mexico
06/08/08 - SCORPIO GOLD CORPORATION SIGNS LETTER OF INTENT WITH CINCORO CAPITAL CORP. FOR QUALIFYING TRANSACTION
05/08/08 - Scorpio Begins Shipments Of Concentrates From Its 100% Owned Nuestra Senora Project, Sinaloa State, Mexico
07/07/08 - Scorpio's Drilling of Santa Teresa Zone reports 1.60 metres grading 1,640 g/t Silver...