Scorpio Mining Announces Second Quarter 2010 Guidance

Monday, Jul 05, 2010

Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the "Corporation") announces operation expectation guidance for the second quarter 2010 as a result of a ball mill failure at the Corporation's Nuestra Senora mill facility in Sinaloa State, Mexico.

Peter J. Hawley, Chairman, CEO reports, "An unfortunate crack in the ball mill A trunnion at the Nuestra Senora mill facility has required a shut down of that ball mill and limiting of the processing throughput to ball mill B. Equipment failure and breakdown is an anticipated occurrence at mine and mill facilities; but due to the immediate action taken by the Scorpio Mexico operational team, we expect to resume processing with both ball mills by mid July 2010. This being the case, the Corporation wishes to inform its shareholders that throughput for the second quarter is expected to be approximately 23% lower than the previously targeted 90,000 tonnes. Accordingly, mill head grades have been increased in order to offset the decrease in total metal production and lessen the impact on revenues for the second quarter."

<< The Corporation notes the following: - Second quarter 2010 process throughput will be reduced by approximately 23%. - Repair and full resumption of ball mill A is expected by mid July 2010. - Third quarter production is expected to meet the budgeted target of 90,000 tonnes for the quarter. - The overall 2010 budgeted throughput target remains unchanged. >>