Re: News - Wednesday, March 09, 2011
Title: Scorpio Mining Reports Nuestra Señora Mineral Reserve of 2.764 Mt @287 AgEq g/t

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

Toronto, March 9, 2011 - Scorpio Mining Corporation (TSX:SPM) ("Scorpio Mining" or the "Corporation") is pleased to report an updated mineral resource and reserve estimate below the 4750 level at its Nuestra Señora mine, Sinaloa State, Mexico.

Parviz Farsangi, President & CEO reports, "We are very pleased with this latest estimate. Reserves alone at Nuestra Señora now support approximately six years of production at our existing processing facility. The mineral resources at Nuestra Señora and other nearby projects are expected to provide additional years of production and are all open to expansion. An aggressive 10,500-metre drilling program to test the exploration potential at Nuestra Señora is scheduled to commence in March 2011. Together with the known and expanding resources in our other mineral concessions in the district, we are building a solid base from which to support growth."

Mineral Resource and Reserve Estimate

Independent consultant, Genivar Inc. of Val d'Or, QC (Genivar), prepared the updated mineral resource and reserve estimate at Nuestra Señora in accordance with NI 43-101. The estimate includes the results of drilling performed since the Corporation's previous estimate (Sedar filing - Jul 9, 2008) and was updated for prevailing costs and metal prices. Genivar provided separate estimates for above and below the 4750 level of the Nuestra Señora mine (just above Level 8). The extent of historical mine workings by Asarco and later artisanal mining above the 4750 level is uncertain, and future development in this area needs further evaluation. The area below the 4750 level is accessed by current operations and will continue to be the focus of development and extraction. The mineral resource and reserve estimate for Nuestra Señora below the 4750 level is as follows:

Table 1. Nuestra Senora Mineral Resource Estimate below the 4750 level - October 31, 2010

Table 2. Nuestra Senora Mineral Reserve Estimate below the 4750 level - October 31, 2010

Notes:

1. Hugues de Corta, P.Geo., of Genivar Inc. is the Qualified Person for this mineral resource and reserve estimate.
2. All mineral resources and reserves have been classified in accordance with CIM definition standards.
3. The estimation is based upon geological data and a mine excavation survey as of October 31, 2010 and accordingly represents the estimated resources and reserves as of that date.
4. The quoted mineral reserves are completely contained within the mineral resources.
5. Mineral resources have had factors for dilution (12.5% at zero grade) and mining recovery (80%) applied to obtain the mineral reserves.
6. "Value US$/t" has been calculated on a contained metal basis using: US$16/oz silver, US$1,015/oz gold, US$2.30/lb copper, US$0.80/lb lead and US$0.85/lb zinc.
7. Silver equivalence has been calculated on a contained metal basis using the metal prices noted above, with no factors for metallurgical recovery or Net Smelter Returns. It is calculated as: AgEq gpt = Ag gpt + (63.4 x Au gpt) + (36.4 x Zn%) + (34.3 x Pb%) + (98.6 x Cu%)
8. Totals may not add due to rounding.
9. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The general methodology used for the estimation includes the following:

• All calculations were made using GEMS software, version 6.2.4.
• Capping grade factors were applied and samples composited at a length of 1.5 metres.
• A block model with cell sizes of 2.5 x 2.5 x 2.5 metres was interpolated using the inverse of the square of the distance using samples in the search ellipsoids. Blocks with composite assay values within a range of 10 metres were classified as "Measured"; those with the closest composite within 10 and 20 metres were classified as "Indicated" and blocks with samples within 20 to 30 metres were classified as "Inferred".
• A specific gravity was also interpolated for each block based on nearest neighbour lithology. The average specific gravity for the total mineral resource is 2.88 tonnes per cubic metre.
• All known underground excavation openings were subtracted from the gross estimated mineral resource.
• All historic Asarco drill data was removed from the estimation to ensure sample integrity and reliability.

Due to the polymetallic nature of Nuestra Señora, the disclosed mineral reserves are based upon the value of the contained metal. The conservative cut-off value of US$85/t is the metal content contained in one tonne of ore for which the net revenue (net of smelter and refining costs) is in excess of the average cash operating costs to mine and process one tonne of ore. This assumes current concentrate sales contract terms, concentrate grades and typical plant performance metal recoveries to calculate the net value. Total cash operating costs at Nuestra Señora, including mining, milling, administration and general costs, are currently under US$50/tonne.

The forecast average daily and annual plant throughput for 2011 is estimated at 1,273 tonnes per day and 464,600 tonnes respectively, and due to higher utilization represents an increase of 22% from 2010 actual plant throughput.

An independent NI 43-101 technical report supporting this mineral resource estimate will be filed on SEDAR within 45 days from the date of this press release.

Scorpio Mining's Mexico Country Manager, John A. Sadek, B.Eng. (Mining), MAusIMM, is a Qualified Person for the Corporation's Mexico projects and has reviewed the content of this release. Hugues de Corta, P.Geo., of Genivar Inc. is the independent Qualified Person for this mineral resource and reserve estimate and has also reviewed the content of this release.

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

ON BEHALF OF SCORPIO MINING CORPORATION

Parviz Farsangi
President & CEO

We seek free harbour.

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