VANCOUVER

,

Aug. 16

/CNW/ - Scorpio Mining Corporation (TSX:SPM) ("Scorpio Mining" or the "Corporation") is pleased to announce its unaudited interim financial and operating results for the second quarter ended

June 30, 2010

.

    <<
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                         Three months Three months   Six months   Six months
                                ended        ended        ended        ended
                              June 30,     June 30,     June 30,     June 30,
                                 2010         2009         2010         2009
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                                    $            $            $            $
    Revenue                 6,464,264    4,650,139   12,486,205    6,904,035
    Mine operating
     earnings                 980,173    1,100,429    2,289,257    1,996,025
    Gain on dilution and
     deconsolidation of
     Scorpio Gold
     Corporation              377,814    1,237,402   20,164,101    1,237,402
    Net earnings (loss)    (1,292,453)     433,910   17,325,374       36,791
    Earnings per share
     (loss)                     (0.01)        0.00         0.12         0.00
    Adjusted EBITDA(1)      1,647,572    1,310,199    3,509,790    2,581,837
    Cash operating cost
     per tonne(2)(3) USD        50.11        44.55        43.25        40.98
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    >>

Peter J. Hawley, CEO reports, "The unexpected failure of one of the two ball mills at Nuestra Senora early in the quarter affected throughput and metal production targets for this quarter. The ball mill was repaired on July 8th, 2010 and the plant came back on line, with the July throughput target of 30,000 tonnes being exceeded, as 34,978 tonnes were processed. The Company expects the third quarter throughput target of 90,000 tonnes will be achieved, and the 2010 annual throughput and produced metals targets to be within reach. The Company congratulates the Mexico operations team on their hard work and the Company will continue to strive to make up the lost time on metal production".

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 June 30, 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 SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2010

SECOND QUARTER

    <<
    -   Net loss was $1,292,453 compared to net earnings of $433,910 for the
        same period of 2009.

    -   Nuestra Senora mine operating earnings were $980,173 compared to
        $1,100,429 for the same period of 2009.

    -   Adjusted EBITDA(1) was $1,647,572 compared to $1,310,199 for the same
        period of 2009.

    -   The average monthly mill throughput increased from 14,142 tonnes in
        Q2 2009 to 23,046 tonnes in Q2 2010, an increase of 163%. During Q2
        of 2010, despite a ball mill failure, the Nuestra Senora mill
        processed 69,138 tonnes in 84 days of production, at an average grade
        of 0.96% lead, 0.36% copper, 2.22% zinc and 114 g/t silver.

    -   Contained metals produced in concentrates consisted of 924,000 pounds
        of lead, 375,000 pounds of copper, 2.860 million pounds of zinc and
        187,496 ounces of silver.

    -   The Corporation acquired 100% of Platte River Gold Inc. through the
        issuance of 74,832,020 common shares. Its assets include three
        polymetallic deposits known as San Rafael, El Cajon and the 120 zone
        located approximately 10 kilometres from the Corporation's Nuestra
        Senora processing facility.

    SIX MONTHS

    -   Due to the gain on dilution and deconsolidation of Scorpio Gold
        Corporation of $20,164,101, net earnings were $17,325,374 compared to
        net earnings of $36,791 for the same period of 2009.

    -   Nuestra Senora mine operating earnings were $2,289,257 for the six-
        month period ended June 30, 2010 compared to $1,996,025 for the same
        period of 2009.

    -   The Nuestra Senora mine processed 161,796 tonnes, compared to 82,021
        tonnes for the same period in 2009.

    -   Adjusted EBITDA(1) was $3,509,790 compared to $2,581,837 for the same
        period of 2009.

    (1) This is a non-GAAP performance measure. The following table provides
        a reconciliation of operation cash costs per tonne:

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