New Crushing Plant For Mineral Ridge

VANCOUVER, BC - Scorpio Gold Corporation reported final operating results for the fourth quarter of 2012 (Q4) and provides 2013 guidance for its 70% owned Mineral Ridge Project located in Nevada.

Peter J. Hawley, CEO said, "The Company is pleased to provide its final production numbers for 2012. In our first year of declared commercial production the Mineral Ridge operation produced a total of 32,066 ounces of gold and 13,871 ounces of silver, meeting its yearly production guidance for 2012. Actual mined ore production in the Drinkwater Pit in 2012 was 3.9% higher than predicted by the reserve block model and the ore mined contained 11.4% more gold ounces than predicted.

"The Company has taken a conservative approach to production guidance for 2013. In the year ahead we look forward to receiving approval for an amended Plan of Operations submitted to the Nevada Bureau of Land Management for the incorporation of a super pit, which will expand the current Mary Pit to incorporate the Mary LC zone. The new super pit will have dimensions greater that the current operating Drinkwater Pit. In addition, the Company looks forward to completion of its new crushing plant that will increase average throughput in 2013 to approximately 2,700 tons per day."

In 2012, the Company commenced construction of a new crushing plant in an improved location that is permitted for 24 hour per day operation at 400 tons per hour. Among multiple design improvements, the new plant will have greater horsepower, a larger jaw crusher, 25% more screen capacity, a modified cone crusher with quick change design, a "bag-house" dust suppression system to reduce water addition to ore and process logic control at multiple stations with inter-locks. With the new plant coming online in 2013, the estimated average throughput for the year will increase to approximately 2,700 tons per day.

Gold production for 2013 at the Mineral Ridge operation is forecast at 32,000 to 35,000 ounces at a total cash cost of US$800 to $US900 per ounce of gold sold.