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VANCOUVER, BRITISH COLUMBIA, Aug 21, 2014 (Marketwired via COMTEX) — Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (tsx venture:SGN) is pleased to announce its financial results for the second quarter ended June 30, 2014 ("Q2"). This press release should be read in conjunction with the Company's condensed consolidated interim financial statements for Q2 and Management Discussion & Analysis for the same period, available on the Company's website atwww.scorpiogold.com and under the Company's name on SEDAR atwww.sedar.com. All monetary amounts are expressed in US dollars unless otherwise specified.

PERFORMANCE HIGHLIGHTS:

----------------------------------------------------------------------------Q2 2014Q2 2013H1 2014H1 2013----------------------------------------$$$$Revenue (000's)10,64614,83523,89526,501Mine operating earnings (000's)1,0483,6622,3787,232Net earnings (loss) (000's)608(7,772)986(5,676)Basic and diluted earnings (loss)per share0.00(0.05)0.00(0.04)Adjusted net earnings(1) (000's)5242,6619104,764Adjusted basic and diluted netearnings per share(1)0.000.010.000.02Adjusted EBITDA(1) (000's)3,3928,3887,32015,255Adjusted basic and diluted EBITDAper share(1)0.020.050.040.08Cash flow from operating activities(000's)2,2245,3925,36211,466Total cash cost per ounce of goldsold(1)815713803738Gold ounces produced9,03410,76919,32818,180----------------------------------------------------------------------------

Peter Hawley, CEO, comments, "Following another strong quarter at Mineral Ridge, the Company is well on track to meet its 2014 production forecast of 40,000 to 45,000 ounces gold at a cash cost of $800 to $850 per ounce of gold sold. Operational excellence remains the Company's key focus, and with the new carbon column tower coming on line as planned at the end of Q2, continued performance through the second half of 2014 is fully expected. We are very proud of our Mineral Ridge operations team, which continues to deliver solid results despite a lower average gold price."

Highlights for the Second Quarter Ended June 30, 2014:

--9,034 ounces of gold produced compared to 10,769 ounces produced duringQ2 of 2013. In late June 2014, an additional carbon column was installedwhich is expected to increase the rate of processing of pregnant leachsolution and thereby bring down leach pad inventory and consequentlyincrease gold production.--Revenue of $10.6 million compared to $14.8 million during Q2 of 2013,due to a lower number of ounces of gold sold at a lower average goldprice.--Total cash cost per ounce of gold sold(1) of $815 compared to $713during Q2 of 2013, mainly attributable to mining a lower grade of ore.--Mine operating earnings (1) of $1.0 million compared to $3.7 millionduring Q2 of 2013.--Net earnings of $0.6 million ($0.00 basic and diluted per share)compared to a net loss of $7.8 million ($0.05 basic and diluted pershare) following non-cash impairment charges of $9.9 million ($0.06basic and diluted per share) during Q2 of 2013.--Adjusted net earnings (1) of $0.5 million ($0.00 basic and diluted pershare) compared to $2.7 million ($0.01 basic and diluted per share)during Q2 of 2013.--Adjusted EBITDA (1) of $3.4 million ($0.02 basic and diluted per share)compared to $8.4 million ($0.05 basic and diluted per share) during Q2of 2013, as a result of lower revenue and higher cash costs.--Cash flow from operating activities (1) of $2.2 million, down from $5.4million during Q2 of 2013, as a result of lower revenue and higher cashcosts.

Highlights for the Six-Month Period Ended June 30, 2014:

--19,328 ounces of gold produced compared to 18,180 ounces produced duringthe six months ended June 30, 2013.--Revenue of $23.9 million compared to $26.5 million during the six monthsended June 30, 2013, mainly due to increased production which resultedin a higher number of ounces of gold sold, but at a lower average goldprice.--Total cash cost per ounce of gold sold(1) of $803 compared to $738during the six months ended June 30, 2013, mainly attributable to alower head grade.--Mine operating earnings (1) of $2.4 million compared to $7.2 millionduring the six months ended June 30, 2013.--Net earnings of $1.0 million ($0.00 basic and diluted per share)compared to a net loss of $5.7 million ($0.04 basic and diluted pershare) following non-cash impairment charges of $9.9 million ($0.06basic and diluted per share) during the six months ended June 30, 2013.--Adjusted net earnings (1) of $0.9 million ($0.00 basic and diluted pershare) compared to $4.8 million ($0.02 basic and diluted per share)during the six months ended June 30, 2013.--Adjusted EBITDA(1) of $7.3 million ($0.04 basic and diluted per share)compared to $15.3 million ($0.08 basic and diluted per share) millionduring the six months ended June 30, 2013, as a result of lower revenueand higher cash costs.--Cash flow from operating activities (1) of $5.4 million, down from $11.5million during the six months ended June 30, 2013, as a result of lowerrevenue and higher cash costs.--Sale of the Pinon property completed on March 5, 2014, withapproximately $5.2 million of the proceeds from such sale being appliedto reduce the Company's long-term debt.

(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 Q2 of 2014 for a complete definition and reconciliation to the IFRS results reported in the Company's financial statements for Q2 of 2014.

Non-IFRS Measures

The discussion of financial results in this press release includes reference to Adjusted EBITDA, Total 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 Q2 of 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 currently in production as 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 is assessing its exploration plans for the Goldwedge property as well as the potential for toll milling at the Goldwedge plant, which is currently permitted for 400 ton 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

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.

Contacts:Scorpio Gold CorporationSteve RoebuckPresident(819) [email protected]www.scorpiogold.comInvestor Relations:Jim MacdonaldTorrey Hills Capital(858) [email protected]

SOURCE: Scorpio Gold Corporation

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