Scorpio Gold Closes C$11.6 Million Private Placement

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

Vancouver, January 21, 2011 - Scorpio Gold Corporation (the “Company”) (TSX-V: SGN) today announced that it has closed its previously announced private placement (the “Offering”). The Company issued a total of 19,333,333 common shares at a price of C$0.60 per common share, for aggregate gross proceeds of C$11.6 million. Jennings Capital Inc. (“Jennings”) acted as exclusive agent in respect of the Offering.
In connection with the closing of the Offering, Jennings received a cash commission equal to 4% of the aggregate gross proceeds of the Offering and has been granted broker options equal to 4% of the number of common shares issued under the Offering. Each broker option (773,333 options in total) entitles the holder to acquire one common share of the Company at a price of C$0.60 until July 21, 2012.
All of the securities issued under the Offering will be subject to restrictions on resale for four months.

Proceeds of the Offering will be used to fund capital requirements, property bonding and exploration and development at the Mineral Ridge property and for general corporate purposes.

The securities offered have not been and will not be registered under the U.S. Securities Act, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale or solicitation would be unlawful.

For additional information please see the Company’s website at www.scorpiogold.com.

ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION

Peter J. Hawley,
Chief Executive Officer and Director

For further information contact:
Peter J. Hawley Tel: (819) 825-7618