Scorpio Mining Corporation

COMPANY DATA | INTRODUCTION |  PROJECT IN HAND | MANAGEMENT
NEWS UPDATE | CHINESE

COMPANY DATA

INTRODUCTION

Scorpio Mining Corporation is a silver-based company with a focus on Mexico. The Company's flagship asset is the 100% owned Nuestra Senora silver property in the established Cosala, Mexico mining district. The Company also has gold properties in Nova Scotia including the Caribou and Cochrane Hill properties. Over 70% of its shares are owned by major financial institutions and the Company is in strong financial shape.

PROJECT IN HAND

(1) Nuestra Senora Silver-Zinc Project, Mexico

The Nuestra Senora project is located at approximately 10 km east of the town of Cosala in Sinaloa State, Mexico. The property is accessible from Cosala via two heavy equipment access roads reconstructed by Scorpio.

The property comprises three recorded mining exploitation claims (El Angel Tercero, Anexas del Angel and Anexas al Predio) encompassing 140 ha and six exploration claims encompassing 14,174 ha. An application has been made for one additional exploration claim in the immediate area of the existing claims, the size of which will depend upon the amount of land granted at the time of approval. Scorpio Mining's wholly owned Mexican mining subsidiary, Minera Cosala SA de CV, holds 100% ownership of the Nuestra Senora mineral rights with no underlying royalties or interest payments.

During the past 2 years Scorpio has completed over 68,000 metres of surface and underground drilling to define the geometry and resources of the deposits and has discovered an additional 4 mineralized bodies adjacent to the Nuestra Senora body. All bodies, mineralization and resources remain open at depth and on strike. An independent NI 43-101 resource report announced in January 2007 based on drilling to the end of September 2006 reported a Measured / Indicated Resources of 3.54 million tonnes grading 118 g/t silver, 2.27% zinc, 0.38% copper, 1.06% lead and 0.15 g/t gold. Plus an Inferred Resource of 4.1 million tonnes grading 132 g/t silver, 2.18% zinc, 0.22% copper, 1.00% lead and 0.185 g/t gold. It is interesting to note: "That in the 10 years of exploitation by previous owner and explorer of the property ASARCO, they extracted approximately 1 million tonnes and in less than 2 years Scorpio has increased that number by 7 fold, which shows the robust nature of the deposit(s)."

Over $20 million has been invested to date in surface and underground development, resource definition, and mill purchase at Nuestra Senora. The Company is now the largest employer in the village of Cosala with over 130 employees. The Company is poised to commence production at the rate of 1,100 tonnes per day in 2007.

(2) Caribou Gold Project, Nova Scotia

The Caribou property is located 80 km northeast of Halifax and 10 km south of the rural community of Upper Musquodoboit, in Halifax County, Nova Scotia. Scorpio has an option to acquire a 100% interest in the property that comprises 16 contiguous mineral claims covering approximately 256 hectares.

The Company engaged independent Qualified Person, Guy Mac Gillivray, P.Geo., to compile all of the available underground and drill-hole data on the property and prepare a resource estimate. The Inferred Resource estimate using uncut gold assays is 350,305 tonnes grading 8.41 g/t gold (94,763 oz gold) or 12,285 grams of gold per vertical metre. Using a statistical cut-off for gold of 47 g/t, the Inferred Resource for the property is 350,305 tonnes grading 5.83 g/t gold (67,425 oz gold) or 8,710 grams of gold per vertical metre. A NI 43-101 Technical Report supporting the above estimate was filed on SEDAR on February 21, 2007.

(3) Cochrane Hill Gold Project, Nova Scotia

The Cochrane Hill gold deposit is located in Guysborough County, Nova Scotia, 15 km north of Sherbrooke and 210 km northeast of Halifax. Infrastructure and services to the area are excellent.

The property consists of 65 contiguous claims encompassing 1,192 hectares of land in Guysborough County, Nova Scotia. Fifty-three claims encompassing 848 hectares are held under an option agreement, whereby Scorpio earned 100% of the property on November 1, 2005 by making a final cash payment to the property vendor. The option is subject to a 3% Net Smelter Return royalty, 2% of which may be purchased by Scorpio at a cost of $500,000 for the first 1% and $1 million for the second 1%. The remaining 12 claims encompassing 344 hectares were acquired by staking and 100% owned by Scorpio.

(4) Lac Arseneault Project, Quebec

The Lac Arseneault property is located in Bonaventure County, 36 km north of the town of Paspebiac on the south coast of the Gaspe Peninsula, Quebec. The property is easily accessed via paved highway and logging roads. Supplies, services and manpower are readily available in the communities along the southern shore of the Gaspesie.

Scorpio Mining has the option to acquire a 100% interest in 30 contiguous mineral claims encompassing 480 hectares subject to a 2% Net Smelter Return royalty. Scorpio entered into an option agreement with Appalaches Resources Inc. on the Lac Arseneault property in August 2005 and Appalaches completed 28-hole (1,766-metre) diamond drilling program on the property in October of that year. Although Appalaches indicated its intent to conduct a follow-up program for the 2006 field season, Scorpio was informed on July 24, 2006 that Appalaches had chosen to terminate the option agreement. As such, no work was performed on the property during the 2006 field season.

MANAGEMENT

Scorpio Mining Corporation has a well management team with experience in different areas.

Peter J. Hawley, B.Sc., P.Geo., Chairman & CEO
Mr. Hawley has 25 years mining-industry experience that spans grassroots exploration through to development and production. He has worked extensively as a consulting geologist to a large number of intermediate and senior mining companies including Teck Corp., Noranda Inc., Placer Dome Inc. and Barrick Gold Corp. He is also experienced in private and public company financing and corporate administration.

D. Roger Scammell, B.Sc., P.Geo., President & Director
Mr. Scammell has more tan 30 years experience in the mining and exploration industry. He was the Regional Manager of Exploration for Teck Corporation's Mexican subsidiary, Minera Teck SA de CV from 1992 to 2002. Under his direction, Minera Teck discovered the 72 million tonne San Nicolas volcanogenic massive sulphide deposit in Zacatecas, Mexico and the El Limon gold skarn in Guerrero, Mexico.

Paul Bonneville, B.Eng., Vice President, Mining
A mining engineer, Mr. Bonneville worked as Project Manager and Manager Overseas Operations for mining contractor, Ross-Finlay Inc., from 1986 to 2004. During that time he worked in design and supervision of various site construction and underground development projects. Since September 2004 he was Manager of Technical Services for Dumas Contracting Ltd., responsible for the development-stage Lapa and Goldex projects of Agnico Eagle and Casa Berardi project of Aurizon Mines.

Gilbert Comtois, BAA, CA, Interim Acting Chief Financial Officer
The Company's controller, Mr. Gilbert Comtois is elevated from his current position to Interim Acting Chief Financial Officer after the resignation of the Company's Chief Financial Officer Mr. Jean Yves Laliberte. Prior to joining the Company in July 2006, Mr. Comtois was the Principal Director of KPMG/Samson Belair Deloitte & Touche in Rouyn-Noranda, where he performed all financial requirements for various mining clients including Richmont Mines and McWatters Mines.

Robert C. Bryce, B.Sc., MBA, P.Eng., Director
Mr. Bryce is the President and Chairman of Abitex Resources Ltd., a nickel exploration company based in Val d'Or, Quebec. He is the past Vice President of Mining Operations for Aur Resources Inc., where he was in charge of the development and construction of the 4,000 tonne per day Louvicourt base-metal mine in Quebec, and the past General Manager of BHP Billiton's 7,500 tonne per day Selbaie Mine in Quebec.

James G. Henderson, Director
Mr. Henderson has specialized in the emerging company market for more than twenty years and is the founder and present Managing Director of Australian-based Transocean Securities Pty Limited and the founder of Focal Management Pty Limited. He has been a team-leader in mergers, acquisitions, dispositions, takeovers and raising capital in Singapore, Australia, Canada, the US and the UK.

Lisa K. Riley, BA, Director
As past Vice President and Director of TD Bank in London, UK and past Vice President of RBC Capital Markets, London, UK, Ms. Riley's most recent experience was in equity sales, primarily to European institutional clients. Prior to these positions, Ms. Riley was a Bank Analyst and Vice President with Lehman Brothers Inc. of New York, NY.

Janet Horbulyk, Corporate Secretary
Ms. Horbulyk has 25 years of experience with securities regulations including 7 years with the listings department of the Vancouver Stock Exchange.

NEWS UPDATE

On April 30, 2007, Scorpio Mining Corporation announced that Mr. Jean Yves Laliberte has tendered his resignation as the Company's Chief Financial Officer for personal reasons. He remains a consultant to the Company on an as needed basis. 

The Company's controller, Mr. Gilbert Comtois is elevated from his current position to Interim Acting Chief Financial Officer. Prior to joining the Company in July 2006, Mr. Comtois was the Principal Director of KPMG/Samson Belair Deloitte & Touche in Rouyn-Noranda, where he performed all financial requirements for various mining clients including Richmont Mines and McWatters Mines.

On April 30, 2007, Scorpio Mining Corporation announced additional drill results from 2007 underground drilling from the 9th Level and main ramp drill stations of the Nuestra Senora silver-zinc project on the main Nuestra Senora body.

Drilling continues on the Hoag, September 9th and Main Nuestra Senora zones from the 8th, 9th and 10th level cross-cuts and main ramp drill stations. Scorpio's deep drilling from main ramp intercepts 13.60 metres grading 434 g/t Ag, 4.11% Zn, 1.26% Cu, 3.71% Pb and 0.211 g/t Au.

Peter J. Hawley, Chairman & CEO reports, "The drilling from the main ramp drill stations is confirming the downward continuity of the main Nuestra Senora zone and these deeper drill stations will permit the infill drilling between the 10th to 12th levels for future mine planning."

On April 23, 2007, Scorpio Mining Corporation announced additional drill results from 2007 underground drilling from the 9th Level of the Nuestra Senora silver-zinc project on the main Nuestra Senora body.

Drilling continues on the Hoag, September 9th and Main Nuestra Senora zones from the 8th, 9th and 10th level cross-cuts and main ramp drill stations. Scorpio's drilling of Nuestra Senora main zone reports 4.4 metres grading 636 g/t Ag, 11.55% Zn, 5.50% Cu, 7.18% Pb, 0.094 g/t Au and 821 g/t Ag, 21.36% Zn, 7.24% Cu, 4.72% Pb, 0.525 g/t Au over 2.2 metres.

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