Toronto, March 18, 2014 – Scorpio
Mining Corporation (TSX: SPM) (“Scorpio Mining” or the
“Company”) today reported its financial and operating results for the
fourth quarter (“Q4”) and year ended December 31, 2013. This press
release should be read in conjunction with the Company’s audited Financial
Statements and Management’s Discussion and Analysis (“MD&A”) for
the year ended December 31, 2013, as available on the Company’s website at www.scorpiomining.com and on SEDAR at www.sedar.com. All monetary figures are
expressed in Canadian dollars unless otherwise specified.

HIGHLIGHTS FOR THE THREE MONTHS AND YEAR ENDED DECEMBER, 2013

⁽¹⁾ This is a non-IFRS performance measure; see Non-IFRS
Performance Measures section in the MD&A.
⁽²⁾ Silver equivalent ounces were calculated using the following
metal prices: silver US$24/oz.; zinc US$0.90/lb.; copper US$3.50/lb.; and lead
US$0.90/lb.

RECONCILIATION OF RESERVES AND RESOURCES – NUESTRA SEÑORA

The Company completed an internal reconciliation of its Mineral Reserves and
Resources as at December 31, 2013, against the amounts declared as at December
31, 2012 in the report titled “Technical Report and Preliminary Economic
Assessment, Nuestra Señora , San Rafael and El Cajón Deposits” prepared by
Mine Development Associates (“MDA Technical Report”). The
reconciliation was prepared by the Company’s technical services team under the
supervision of the Company’s V.P. Exploration, James Stonehouse who is a
Qualified Person in accordance with NI 43-101.

The following table presents the remaining reserves and resources in the
Nuestra Señora Mine, accounting for mining operations and definition drilling
work through 2013.

Reconciliation of Nuestra Señora Reserves and Resources at EOY 2013

⁽¹⁾ Based on MDA Technical Report
⁽²⁾ Reserves included in M&I Resources

During 2013, only 31% of the reserves were thus depleted, representing 31% of
the overall plant feed tonnage processed, with the balance provided from
non-reserve material within Nuestra Señora and from La Verde. The remaining
reserves of 366 kilotonnes represent 65% of the budgeted plant feed in 2014,
with the possibility of adding more tonnage as plant feed from the resource
envelope, as mining and development progress during the year.

2013 HIGHLIGHTS

Financial

• Revenue
  from payable metals of $39.1 million in 2013, decreased from $55.0 million
  in 2012 due to lower metal prices for silver, zinc and copper and lower
  head grades for all metals;




• Cash
  cost per payable silver ounce, net of by-product credits⁽¹⁾,
  increased to $13.76 in 2013 compared to $11.93 in 2012 due to a decrease
  in payable silver ounces; a decrease in by-product credits as a result of
  lower metal production and metal prices for all metals, except lead;
  partially offset by increased throughput due to high processing plant
  availability and utilization;




• Net
  loss in 2013 was $(9.2) million or $(0.05) per share (basic) compared to
  net earnings of $7.1 million, or $0.04 per share (basic) in 2012. The 2013
  net loss includes an impairment charge of $(5.5) million or $(0.03) per
  share(basic) related to the Company’s investment in the common shares of
  Scorpio Gold Corporation (“Scorpio Gold”); and an impairment
  charge of $(0.8) million, net of tax, in respect of the Company’s deferred
  development and exploration costs at its Nuestra Señora Mine;




• Adjusted
  EBITDA⁽¹⁾ of $4.3 million in 2013 decreased from $15.5 million
  in 2012 as a result of lower revenues described above;




• Cash
  flow from operating activities before movements in working capital of $4.4
  million in 2013 decreased from $15.6 million in 2012; and




• Working
  capital was $35.8 million at the end of 2013, down from $44.7 million at
  the end of 2012.

Operations

• On
  a year-to-year basis, 2013 experienced the highest annual plant throughput
  at 534,043 tonnes. Lead production increased in 2013 compared to 2012
  whereas all other metals experienced relative declines. Silver recovery
  increased from 79% to 81%, and lead from 66% to 70%, despite pressure on
  plant efficiency coming from the decrease in head grades, from 90 g/t to
  70 g/t and 0.87% to 0.82%, for silver and lead, respectively;




• Recovered
  silver equivalent ounces⁽²⁾, at 1,959,113 ounces in 2013,
  decreased by 14% from 2,282,512 ounces in 2012 mainly due to the lower
  head grades;




• Focus
  on decreasing costs and increasing efficiencies led to drafting of changes
  to work schedules for plant and mine personnel, resulting in the reduction
  of overlaps and overtime. A review of the required manpower base led to
  the identification of operations and exploration personnel redundancies.
  As such, during 2013, a 14% reduction in the Company’s workforce was
  implemented across these departments;




• Contract
  mining commenced at the Company’s wholly-owned silver-copper La Verde Mine
  during Q3 2013 and production from La Verde totalled 34,265 silver
  equivalent ounces⁽²⁾ during 2013; and




• Concentrate
  sales contracts have been renegotiated for copper and extended for zinc,
  with the copper and lead concentrates placed until June 30, 2014, and zinc
  concentrate until December 31, 2014.

⁽¹⁾ This is a non-IFRS performance measure; see Non-IFRS
Performance Measures section in the MD&A.
⁽²⁾ Silver equivalent ounces were calculated using the following
metal prices: silver US$24/oz.; zinc US$0.90/lb.; copper US$3.50/lb.; and lead
US$0.90/lb.


Project development

• Released
  the latest reserve estimate for the Nuestra Señora Mine and the
  Preliminary Economic Assessment (“PEA”) for the advanced Cosalá
  District mineral resources;




• Received
  approval from SEMARNAT for its Environmental Impact Statement (Spanish
  acronym “MIA”) pertaining to underground mining at the El Cajón
  and San Rafael Projects;




• Received
  approval from SEMARNAT for the application for the Change of Use of Soil
  (“CUS”) pertaining to the development of underground mining
  operations at the El Cajón Project, located in the Cosalá Norte District;




• JDS
  Energy and Mining Inc. (“JDS”) was engaged to perform a
  prefeasibility study (“PFS”) for underground mining of the El
  Cajón Project. While progressing through the preparation of the PFS, the
  Company identified discrepancies between registered data and mapped
  information relative to the boundaries of the concessions encompassing the
  El Cajón resource outline. The Company is proceeding with development work
  while awaiting confirmation of the boundaries from the Dirección General
  de Minería (“DGM”). The completion of the PFS is expected in Q3
  2014, following incorporation of geotechnical data analysis and resolution
  of the concession boundaries by the DGM, and will then result in the
  publication of NI 43-101-compliant mineral reserves; and




• Received
  archaeological clearance for the haulage road realignment linking the
  Cosalá Norte development area and the existing Nuestra Señora processing
  plant.

Exploration

• The
  Company completed 7,150 meters of underground drilling at the Nuestra
  Señora Mine;




• Efforts
  have been directed at following up geophysical and ASTER studies performed
  during Q1 2013. Over 4,000 geochemical samples have been taken in grids
  covering areas identified by radiometric and aeromagnetic surveys. Mapping
  of these areas has been performed as well;




• A
  mapping and sampling program on surface at Nuestra Señora has led to
  defining material which can be recovered from within the Nuestra Señora
  Mine. This program has now expanded to cover more distant targets in the
  Nuestra Senora area. Efforts are underway to acquire the necessary
  permissions to drill targets developed from the mapping and sampling
  efforts adjacent to Nuestra Señora;




• Additional
  mapping at La Verde has defined previously unrecognized mineralized
  material controls. Re-sampling of drill cores is aiding in targeting new
  potential areas. The mine workings have been completely re-mapped and all
  the drill cores re-logged in light of the new ore controls. Plans are
  being formulated for a more detailed evaluation of the mine area, towards
  definition of resources;




• Geochemistry
  and mapping based on geophysical data have outlined a 6 kilometer long
  structural zone, related to La Verde, which contains several targets
  around small prospects conforming to the same La Verde model. Steps are
  being taken to allow for the detailed exploration of these zones.
  Archeological studies have been performed and cleared the area for future
  work; and




• Programs
  have been designed to upgrade the resources at the San Rafael Main Zone
  and El Cajón in 2014.

OUTLOOK FOR 2014

The Company is focused on maintaining ore production at current levels, to meet
the nominal plant capacity of 1,600 tpd throughout 2014, first through providing
the plant with a mixture of material mined from the Nuestra Señora and La Verde
Mines and, second through El Cajón which becomes the primary source once it is
fully ramped up. At this point, remnant mining at Nuestra Señora would not
justify maintaining a production team and related equipment within this mine.
These assets would then be redeployed within El Cajón, to minimize equipment
purchases.

A program based on a continued thorough review of previously mined sections of
the Nuestra Señora orebody, including the Candelaria Zone, the on-going
placement of backfill, which enabled mining of secondary stopes, and other
initiatives provided higher plant feed grades in Q3 and Q4 2013. These same
sources are expected to be available through Q4 2014. Mining of the reserves
and resources at Nuestra Señora will continue, with additional plant feed as
defined by short-term definition drilling while ensuring that safe, sustainable
methods are used.

The CUS for the El Cajón deposit was approved by SEMARNAT in Q4 2013. This has
allowed the Company to commence development of El Cajón in early 2014. This
underground development work at El Cajón is expected to be completed in Q3
2014. An additional quarter will be needed to ramp the mining activities to a
regular production regime at an expected potential of up to 1,500 tpd using
design assumptions based solely on surface drilling data. A level of
sustainable output will be better determined once underground operations are
underway and multiple accesses to the orebody are achieved. JDS is currently
working on a PFS to be provided in Q3 2014. Geotechnical drilling and
tree-clearing activities have been completed at El Cajón, with cut-and-fill
activities at the location of the mine adit and surface infrastructures nearing
completion. A short-list of mine contractors for driving the ramp has been
completed, with the selection of the retained bidder expected in March 2014.

The Company ended 2013 with approximately $16.4 million in its treasury, over
$35 million in working capital and no debt. Despite reduced cash flows brought
on by the difficult metal pricing environment, reduction in the operating and
exploration expenditures, coupled with improved head grades, the Company
believes that its treasury and future cash flows will be adequate to finance
the development of El Cajón, define resources at the La Verde Mine, de-risk the
San Rafael Project and sustain minimal regional exploration during 2014.

ANNUAL GENERAL AND SPECIAL MEETING OF SHAREHOLDERS

Scorpio Mining also announces that its 2014 Annual General and Special Meeting
of Shareholders will be held at 4:00 pm Eastern Time on Tuesday, May 13, 2014
at the New Brunswick Room, Main Mezzanine Floor of the Fairmont Royal York
Hotel, 100 Front Street West, Toronto, Ontario, M5J 1T1.

Scorpio shareholders of record at the close of business on April 3, 2014 are
entitled to attend the Annual General and Special Meeting and vote their
shares.

About Us

Scorpio Mining Corporation is a silver producer operating in Mexico with
significant base metal by-product credits. The 100% owned Nuestra Señora Mine
in the Cosalá District of Sinaloa State, Mexico, has flexible mining methods
and diversified metal production. It has a fully mechanized underground
operation and a processing facility with permitted capacity for expansion to
4,000 tonnes per day. The plant produces zinc, copper and lead concentrates,
with a significant payable silver component in the copper and lead
concentrates.

In addition, the Company has numerous exploration targets in the vicinity of
its current operations as well as the advanced El Cajón and San Rafael
development projects. The Company’s strategy for near-term growth is currently
focused on mine development of the El Cajón deposit upon receipt of permitting.

Scorpio Mining’s President and CEO, Mr. Pierre Lacombe, Eng., is a Qualified
Person as defined under National Instrument 43-101 and has reviewed and
approved the content of this release.

ON BEHALF OF SCORPIO MINING CORPORATION

Pierre Lacombe
President & CEO

For further information contact:
Victoria Vargas, Vice President Investor Relations and Corporate Communications
+1 416-585-2200
Email: [email protected]


Website: www.scorpiomining.com


This news release includes certain statements
that may be deemed “forward-looking statements” within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities legislation. Forward-looking statements include,
but are not limited to, statements with respect to the Company’s operations,
exploration and development plans, expansion plans, estimates, expectations,
forecasts, objectives, predictions and projections of the future. Generally,
these forward-looking statements can be identified by the forward-looking
terminology such as “plans”, “expects” or “does not
expect”, “is expected”, “budget”, “scheduled”,
“estimates”, “projects”, “intends”,
“anticipates”, or “does not anticipate”, or
“believes”, or “variations of such words and phrases or state
that certain actions, events or results “may”, “can”,
“could”, “would”, “might”, or “will” be
taken”, “occur” or “be achieved”. Forward-looking
statements are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or
achievements of Scorpio Mining Corporation to be materially different from
those expressed or implied by such forward-looking statements, including but
not limited to: risks related to the exploration and development and operation
of the Company’s projects in Mexico, risks related to international operations,
construction delays and cost overruns, the actual results of current exploration,
development and construction activities, conclusions of economic evaluations,
changes in project parameters as plans continue to be refined, future prices of
silver, zinc, copper, lead and gold, risks relating to completing acquisition
transactions as well as those factors discussed in the sections relating to
risk factors of our business filed in Scorpio Mining Corporation’s required
securities filings on SEDAR, including its Annual Information Form dated March
14, 2013. Although Scorpio Mining Corporation has attempted to identify
important factors that could cause results to differ materially from those
contained in forward-looking statements, there may be other factors that cause
results to be materially different from those anticipated, described,
estimated, assessed or intended.

There can be no assurance that any forward-looking statements will prove
accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Scorpio Mining Corporation does
not undertake to update any forward-looking statements that are incorporated by
reference herein, except in accordance with applicable securities laws.