Vancouver, April 28, 2015 – Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) is pleased to announce its financial results for the fourth quarter ("Q4") and year ended December 31, 2014. This press release should be read in conjunction with the Company's consolidated financial statements for the year ended December 31, 2014 and Management's Discussion & Analysis ("MD&A") for the same period, available on the Company's website at www.scorpiogold.com and under the Company's name on SEDAR at www.sedar.com. All monetary amounts are expressed in US dollars unless otherwise specified.

PERFORMANCE HIGHLIGHTS:

Peter Hawley, the Company's CEO, comments, "The Company continued to increase its gold production during 2014 and generated $16.2 million of cash flow from operating activities despite lower gold prices. As with many other companies in the industry, the Company recorded a non-cash impairment during 2014. The Company continues to focus on operational excellence along with safe mining practices. In addition, an aggressive drilling program has been planned for 2015 at the Mineral Ridge project with the objective of increasing its life of mine. The Company remains on target to meet its guidance of 40-45,000 ounces of gold production at a cost of $800-$850 per ounce in 2015."

2014 HIGHLIGHTS AND SUBSEQUENT EVENTS

• 40,814 ounces of gold produced at the Mineral Ridge mine compared to 39,160 ounces during 2013.
• Revenue of $52.0 million compared to $54.6 million during 2013, as a result a 10% decline in gold prices, partially offset by the sale of 5% more gold ounces in 2014 than 2013.
• Total cash cost per ounce of gold sold(1) of $845 compared to $734 during 2013, mainly attributable to lower head grades.
• Mine operating earnings(1) of $3.1 million compared to $10.8 million during 2013.
• Net loss of $27.4 million ($0.16 basic and diluted per share) after non-cash impairment charge of $28.2 million, compared to a net loss of $ 6.8 million ($0.05 basic and diluted per share) after a non-cash impairment charge of $12.6 million during 2013.
• Adjusted net earnings(1) of $0.3 million ($0.00 basic and diluted per share) compared to $6.3 million ($0.03 basic and diluted per share) during 2013.
• Adjusted EBITDA(1) of $12.3 million ($0.06 basic and diluted per share) compared to $25.2 million ($0.14 basic and diluted per share) during 2013, mainly as a result of higher unit costs per ounce of gold sold and lower realized gold prices.
• Cash flow from operating activities(1) of $16.2 million compared to $22.9 million during 2013, mainly as a result of higher cash costs per ounce of gold sold and lower realized gold prices, offset by a favorable change in inventory.
• On November 5, 2014, the Company received 1,250,000 additional common shares of Gold Standard Ventures Corp. ("Gold Standard") as bonus consideration pursuant to the sale agreement in respect of the Pinon property. The Company held an aggregate of 6,750,000 common shares of Gold Standard as at December 31, 2014.
• During Q1 of 2015, the Company received proceeds of $3.3 million from the sale of all of the common shares of Gold Standard, and also received payment from Gold Standard of the debt represented by the CAD$2.5 million promissory note received as part of the sale of the Pinon property.
• On March 11, 2015, the Company's long-term debt owing to Waterton Global Value LP ("Waterton") was fully repaid.
• On March 6, 2015, the Company announced a strategic financing to raise $15 million from the issuance of equity to Coral Reef Capital LLC ("Coral Reef"). This financing was thereafter terminated and as such the Company is obligated to pay a break fee of $500,000 along with approximately $100,000 of related due diligence costs incurred by Coral Reef.

FOURTH QUARTER 2014 ("Q4") HIGHLIGHTS

• 10,258 ounces of gold produced at the Mineral Ridge mine compared to 11,348 ounces in Q4 of 2013, a decrease of 10% due to a lower head grade in 2014 along with a lower number of ore tonnes mined during Q4 of 2014 compared to Q4 of 2013. Significantly more effort was put towards mine development during Q4 of 2014 compared to Q4 of 2013.
• Revenue of $13.4 million in Q4 of 2014 compared to $13.7 million during Q4 of 2013. During Q4 of 2014, the Company sold 11,344 gold ounces at an average price of $1,173 per ounce compared to 10,895 gold ounces at an average price of $1,254 per ounce during Q4 of 2013.
• Total cash cost per ounce of gold sold(1) of $898 in Q4 of 2014 compared to $732 during Q4 of 2013. This increase is mainly attributable to lower head grades during Q4 of 2014.
• Mine operating loss(1) of $0.5 million compared to mine operating earnings(1) of $1.8 million during Q4 of 2013, as a result of higher cash cost and lower average gold prices, partly offset by the higher number of ounces sold.
• Net loss of $28.7 million ($0.16 basic and diluted per share), compared to $2.0 million ($0.02 basic and diluted per share) during Q4 of 2013. During Q4 of 2014, impairments of $26.9 million and $1.3 million, respectively, were recorded on the mining assets and available-for-sale investments. During Q4 of 2013 a non-cash impairment charge of $2.7 million was recorded on the Pinon assets, which were subsequently disposed of in 2014.
• Adjusted net loss(1) of $1.1 million ($0.01 basic and diluted per share) compared to adjusted net earnings(1) of $0.8 million ($0.00 basic and diluted per share) during Q4 of 2013.
• Adjusted EBITDA(1) of $1.5 million ($0.01 basic and diluted per share) compared to $4.8 million ($0.03 basic and diluted per share) during Q4 of 2013 mainly as a result of higher cash cost per ounce of gold sold and lower average gold prices, partly offset by the higher number of ounces sold.
• Cash flow from operating activities(1) of $5.8 million compared to $4.8 million in Q4 of 2013, mainly as a result of a favorable change in inventory partially offset by the higher cash costs per ounce of gold sold and lower realized gold prices during Q4 of 2014 compared to Q4 of 2013.

(1) This is a non-IFRS measure; refer to Non-IFRS Measures section of this press release and the Company's Management Discussion & Analysis for a complete definition and reconciliation to the Company's financial statements.

NON-IFRS MEASURES 

The discussion of financial results in this press release includes reference to Adjusted EBITDA, Cash Cost per Ounce of Gold Sold and Adjusted Net Earnings, which are non-IFRS measures. The Company provides these measures as additional information regarding the Company's financial results and performance. Please refer to the Company's MD&A for the year ended December 31, 2014 for definitions of these terms and a reconciliation of these measures to reported IFRS results.

About Scorpio Gold Corporation 

Scorpio Gold holds a 70% interest in the producing Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Waterton Global Value L.P. (30%), and Scorpio Gold is currently entitled to receive 80% of cash flow generated. Mineral Ridge is a conventional open pit mining and heap leach operation. The Mineral Ridge property is host to multiple gold-bearing structures, veins and lenses at exploration, development and production stages. Scorpio Gold also holds a 100% interest in the advanced exploration-stage Goldwedge property and processing facility in Manhattan, Nevada. The Company has commenced its 2015 exploration program for the Goldwedge property and is currently processing high-grade Mineral Ridge ore at the Goldwedge plant, which is permitted to process 400 tons per day.

Scorpio Gold's CEO, Peter J. Hawley, P.Geo., is a Qualified Person as defined in National Instrument 43-101 and has reviewed and approved the content of this release. 

ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION

Peter J. Hawley,
CEO

For further information contact:
Peter J. Hawley, CEO
Tel: (819) 825-7618
Email: [email protected]

Website: www.scorpiogold.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The Company relies on litigation protection for "forward-looking" statements. This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the Company's plans with respect to the exploration, development and exploitation of its Mineral Ridge project, including any forecasts regarding future production or costs related thereto. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements, including risks relating to operation of a gold mine, including unanticipated changes in the mineral content of materials being mined; unanticipated changes in recovery rates; changes in project parameters; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; availability of skilled labour and the impact of labour disputes; delays in obtaining governmental approvals; changes in metals prices; the availability of cash flows or financing to meet the Company's ongoing financial obligations; unanticipated changes in key management personnel; changes in general economic conditions; other risks of the mining industry and those risk factors outlined in the Company's Management Discussion and Analysis as filed on SEDAR. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty thereof.

Original Article: http://www.scorpiogold.com/s/news.asp?ReportID=705525