Scorpio Mining Provides November-December Update and January 2009 Forecast

    TSX:SPM

    VANCOUVER, Dec. 22 /CNW/ - Scorpio Mining Corporation (TSX:SPM) is
pleased to provide an operational update for November-December 2008 and its
January 2009 forecast for the 100% owned Nuestra Senora mine, Sinaloa State,
Mexico.
    Peter J. Hawley, Chairman, CEO reports, "As previously announced on
November 8, 2008, the addition of higher-grade ore from high-grade production
stopes versus earlier development stockpile material has increased the overall
copper content of the mill feed and justified activation of the copper
circuit. The standard procedure to extract the copper is to use cyanide;
however, the Company has conducted laboratory tests using environmentally
friendly starch. This is the same starch that is used in the food industry and
is a fraction of the cost of cyanide. During the last two weeks alone,
modifications to the process resulted in a 30% to 70% reduction in consumption
of the various costly reagents. This in turn has reduced the cost of
processing a tonne of concentrate. The combination of processing higher-grade
material and modifications to the circuit has resulted in an increase in the
silver payable in the lead concentrate, a new cash flow of copper concentrate
that includes silver revenues and an increase in the percentage of zinc in the
zinc concentrate. The new addition of copper and silver payables from the
copper concentrate will augment the Company's income and cash on hand.
    The achievement of consistent results in terms of processing and
recoveries has gained unanimous approval by the Company's Board of Directors
to declare commercial production commencing in January 2009. During 2009, if
the operation clearly demonstrates a two-month positive cash flow, the Company
will review metal prices related to cash flow and for every 10% increase in
metal prices, increase the mine and mill throughput by 10%. The Company
believes that this will not only allow the Company to generate increased
revenues but also conserve the contained metals in the ground for times that
are more payable."November 2008 Update

    -   132 tonnes of lead concentrate shipped.
    -   898 tonnes of zinc concentrate shipped.
    -   Mill throughput of 17,457 for 26 days.
    -   Copper circuit activated in late November.
    -   Increased silver component in lead concentrate.
    -   New revenue stream from copper-silver concentrate.
    -   Off take for copper concentrate arranged.
    -   Reduction in consumption of reagents.
    -   Reduction of work force.

    December 2008 (Update as of Dec. 18)

    -   347 tonnes of lead concentrate shipped.
    -   52 tonnes of copper concentrate shipped.
    -   Current lead concentrate inventory of 476 tonnes.
    -   Current zinc concentrate inventory of 696 tonnes.
    -   Current copper concentrate inventory of 36 tonnes.
    -   Mill throughput of 8,547 tonnes for 12 days.
    -   Current ore stockpile for processing at mill site is 59,271 tonnes
        including 56,191 tonnes of development ore in the No. 1 stockpile and
        3,080 tonnes of high-grade ore in stockpile No. 2.
    -   Completion of Company owned housing allowing termination of 14 rental
        units.
    -   Completion of Company owned core storage and logging facilities
        allowing termination of leased facilities.

    January 2009 Forecast

    -   Official commercial production slated for January 2009.
    -   All-in mining, milling and administration (Mexico) costs forecasted
        at $37.11 per tonne.
    -   Throughput per month (reviewed each two months) at 11,500 tonnes per
        month.
    -   Mill grade throughput estimated at 127 g/t silver, 0.63% copper,
        1.34% lead, 2.55% zinc.
    -   2009 salaries to upper administration in Canada and Mexico reduced by
        10-15 percent.
    -   Re-modification of the existing copper circuit to maximize copper-
        silver recovery.
    -   Finalize 2009 negotiations with off take partners for the sale of
        concentrates, treatment charges and related pricing.
    -   Continue discussions regarding toll milling of copper-silver ore from
        a local producer versus purchase of material before processing.
    -   Rotation schedule of mine/mill employees

    January 2009 Variables

    -   Metal prices.
    -   Throughput increase for each 10% increase in metal prices.
    -   Mill head grades.
    -   Increased recoveries of concentrates with continued fine tuning of
        processing facility.
    -   Expected lower smelter treatment charges.
    -   Reduced transportation charges of concentrates.

    Further information is available on the Company's web site at:
www.scorpiomining.com.

    President, Mr. D. Roger Scammell, PGeo, is the Company's Qualified Person
for the Nuestra Senora project. Mr. Scammell is responsible for the current
exploration and development program and has reviewed the content of this
release.

    ON BEHALF OF SCORPIO MINING CORPORATION

    Peter J. Hawley
    Chairman & CEOThis 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 processing throughput, increased recoveries and
reduction of operating costs, and Scorpio Mining Corporation's commitment to,
and plans for developing the Nuestra Senora Project. 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 construction of the Nuestra Senora Project, 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,
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 26, 2008. 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.

For further information: Glenn Little, Jackson Little Holdings Ltd:
[phone], 1-888-930-4375, Email: [e-mail]; Rich Kaiser,
YES International: 1-800-631-8127, 001-757-306-6090 (outside North America),
Email: [e-mail]