Scorpio Mining Announces First Quarter 2010 Financial Results

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./

TSX:SPM

VANCOUVER, May 18 /CNW/ - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the "Corporation") is pleased to announce the unaudited interim financial and operating results for the first quarter ended March 31, 2010.

    
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                                                    2010            2009
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    Revenue                                     $6.0 million    $2.3 million
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    Mine operating earnings                     $1.3 million    $0.9 million
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    Gain on dilution and deconsolidation of
    Scorpio Gold Corporation                   $19.8 million               -
    -------------------------------------------------------------------------
    Net earnings (loss)                        $18.6 million   ($0.4 million)
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    Earnings per share (loss)                       $0.17          ($0.00)
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    Adjusted EBITDA(1)                          $1.9 million    $1.1 million
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    Cash operating cost per tonne (1)             US$33.01        US$35.78
    -------------------------------------------------------------------------
    

Peter J. Hawley, Chairman, CEO reports, "On behalf of Management and the Board of Directors of the Corporation, I am extremely pleased to report another successful quarter for Scorpio Mining as its production continues to increase, bringing adjusted EBITDA of $1.9 million for the quarter. The continued hard work of the Scorpio team in keeping operating costs low, while increasing mine production and mill throughput has contributed to this solid performance. Net earnings were $18.6 million, which included a non-recurring gain on the deconsolidating of Scorpio Gold of $19.8 million."

This earnings release should be read in conjunction with the Corporation's MD&A, Financial Statements and Notes to Financial Statements for the period ended March 31, 2010, which are available on the Corporation's website at www.scorpiomining.com and have been posted on SEDAR at www.sedar.com.

Highlights For The First Quarter Ended March 31, 2010 and Subsequent Events:

    
    -  Nuestra Senora mine continued to increase production and, for the
       first quarter of 2010, processed 92,658 tonnes, which is equivalent to
       44% of the total production for 2009.

    -  Nuestra Senora mine operating earnings were $1,309,084 for the
       three-month period ended March 31, 2010 compared to $895,596 for the
       same period of 2009.

    -  Adjusted EBITDA(1) were $1,862,218 for the three-month period ended
       March 31, 2010 compared to $1,061,102 for the same period of 2009.

    -  Due to the gain on dilution and deconsolidation of Scorpio Gold
       Corporation of $19,786,287, net earnings were $18,617,827 for the
       three-month period ended March 31, 2010 compared to net loss of
       $397,119 for the same period of 2009.

    -  Nuestra Senora unit cash operating costs(1) were 7.7% lower than 2009,
       at US$33.01 per tonne for the three-month period ended March 31, 2010
       compared with US$35.78 per tonne for the same period of 2009.

    -  The average monthly mill throughput increased from 13,199 tonnes in Q1
       2009 to 30,886 tonnes in Q1 2010, an increase of 134%. During Q1 2010,
       the Nuestra Senora mill processed 92,658 tonnes in 79 days of
       production at an average grade of 1.12% lead, 0.23% copper, 2.18% zinc
       and 81 g/t silver.

    -  For the first quarter ending March 31, 2010, contained metals produced
       in concentrates consisted of 1.758 million pounds of lead, 235,000
       pounds of copper, 3.434 million pounds of zinc and 213,435 ounces of
       silver.

    -  On April 1, 2010, the Corporation acquired 100% of Platte River Gold
       Inc. through the issuance of 74,832,020 common shares.


    (1) This is a non-GAAP performance measure; please see Non-GAAP
        Performance Measures section in the Corporation's MD&A.
    

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

President, Mr. D. Roger Scammell, PGeo, is the Corporation's Qualified Person for the Nuestra Senora project and has reviewed the content of this release.

ON BEHALF OF SCORPIO MINING CORPORATION

    
    Peter J. Hawley
    Chairman & 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 enhancing mine operations, completing acquisitions 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 operation 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, 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, 2010. 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.

SOURCE Scorpio Mining Corporation

For further information: For further information: Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America), Email: yes@yesinternational.com

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