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Scorpio Gold Reports Annual Gold Production Exceeding Guidance at the Mineral Ridge Operation, Nevada

Production Results

TSX-V: SGN

1462 de la Québécoise

Val-d’Or, QC, J9P 5H4

T: 819- 825-7618

www.scorpiogold.com

News Release No. 231

Scorpio Gold Reports Annual Gold Production Exceeding Guidance

at the Mineral Ridge Operation, Nevada

Vancouver, January 11, 2017 - Scorpio Gold Corpora tion (“Scorpio Gold” or the “Company”) (TSX-V:

SGN; Frankfurt: Z3S) announces its operating results for the full year and the fourth quarter (“Q4”) of 2016

at its 70% owned Mineral Ridge project, located in Nevada.

Total gold production in 2016 was 36,879 ounces, ex ceeding the Company’s high end guidance of 35,000

by 1,879 ounces, or 5%. The annual production for 2016 of 36,879 ounces represented a decrease of 7%

over the prior year. Gold production in Q4 2016 totalled 8,301 ounces representing a decrease of 13% from

Q4 2015. Mine production decreased in 2016 due to mining 24% fewer ore tonnes at 5% lower grades in

the Mary LC and satellite pits, as compared to the prior year. Ore tonnes crushed and placed on the pad

were 5% lower in 2016 compared to 2015 as a result of fewer tonnes mined which was offset by a larger

initial ore stockpile inventory at the beginning of 2016.

Chris Zerga, President, comments, “We are proud to report that we have exceeded the high end of our

production guidance of 30,000-35,000 ounces for 2016 with 36,879 gold ounces produced at Mineral Ridge

in 2016. Scorpio Gold has now completed five years of production at Mineral Ridge, consistently meeting

or exceeding annual guidance, while maintaining a safe working environment for our employees and

contractors. I would like to thank the entire producti on team who continue to make the Mineral Ridge

operation a success.”

Key Operating Statistics

Three months ending

December 31

Twelve months ending

December 31

2016 2015 Change 2016 2015 Change

Mining operations

Mary LC pit

Ore tonnes mined 148,161 119,891 23.6% 553,402 203,468 172.0%

Waste tonnes mined 977,246 743,394 31.5% 3,519,285 1,684,728 108.9%

Total mined 1,125,407 863,285 30.4% 4,072,687 1,888,196 115.7%

Strip Ratio 6.6 6.2 6.5% 6.4 8.3 -22.9%

Satellite pits

Ore tonnes mined 6,028 245,569 -97.5% 196,802 487,234 -59.6%

Waste tonnes mined 5,888 769,186 -99.2% 525,491 2,045,787 -74.3%

Total mined 11,916 1,014,755 -98.8% 722,293 2,533,021 -71.5%

Strip Ratio 1.0 3.1 -67.7% 2.7 4.2 -35.7%

Scorpio Gold Corporation | 2

Three months ending

December 31

Twelve months ending

December 31

2016 2015 Change 2016 2015 Change

Mary pit

Ore tonnes mined - - 0.0% - 202,002 -100.0%

Waste tonnes mined - - 0.0% - 1,053,992 -100.0%

Total mined - - 0.0% - 1,255,994 -100.0%

Strip Ratio - - 0.0% - 5.2 -100.0%

Total producing pits

Ore tonnes mined 154,189 365,460 -57.8% 750,204 892,704 -16.0%

Waste tonnes mined 983,134 1,512,580 -35.0% 4,044,776 4,784,507 -15.5%

Total mined 1,137,323 1,878,040 -39.4% 4,794,980 5,677,211 -15.5%

Strip Ratio 6.4 4.1 56.1% 5.4 5.4 0.0%

Pits under development

Ore tonnes mined - - 0.0% - 92,146 -100.0%

Waste tonnes mined

(pre-stripping) 160,672 - 100.0% 309,902 1,995,432 -84.5%

Total mined 160,672 - 100.0% 309,902 2,087,578 -85.2%

Total mining operations

Ore tonnes mined 154,189 365,460 -57.8% 750,204 984,850 -23.8%

Waste tonnes mined 1,143,806 1,512,580 -24.4% 4,354,678 6,779,939 -35.8%

Total mined 1,297,995 1,878,040 -30.9% 5,104,882 7,764,789 -34.3%

Processing

Tonnes processed 142,101 265,017 -46.4% 846,140 891,997 -5.1%

Gold head grade (g/t) 1.37 1.66 -17.5% 1.44 1.52 -5.3%

Ounces produced

Gold 8,301 9,503 -12.6% 36,879 39,690 -7.1%

Silver 4,074 4,905 -16.9% 16,950 19,742 -14.1%

Crusher throughput

(tonnes per day) 1,545 2,881 -46.4% 2,312 2,444 -5.4%

Recoverable(1) gold

ounces placed on pad 4,301 9,434 -54.4% 26,549 29,189 -9.0%

(1) A weighted average metallurgical recovery factor has been ap plied to the estimated containe d ounces crushed and placed on

the leach pad based on the pit from which the ore was mined.

About Scorpio Gold

Scorpio Gold holds a 70% interest in the produc ing Mineral Ridge gold mining operation located in

Esmeralda County, Nevada with joint venture partner Elevon, LLC (30%). Mineral Ridge is a conventional

open pit mining and heap leach operation. The Minera l Ridge property is host to multiple gold-bearing

structures, veins and lenses at exploration, developm ent and production stages. Sc orpio Gold also holds a

100% interest in the advanced exploration-stage Gold wedge property in Manhattan, Nevada with a fully

permitted underground mine and 400 ton per day mill facility. The Goldwedge mill facility has been placed

on a care and maintenance basis and can be restarted immediately when needed.

Scorpio Gold Corporation | 3

Scorpio Gold’s Chairman, Peter J. Hawley, PGeo, is a Qualified Person as defined by National Instrument

43-101 and has reviewed and approved the content of this news release.

ON BEHALF OF THE BOARD

SCORPIO GOLD CORPORATION

Chris Zerga,

President

For further information contact:

Chris Zerga, President

Tel: (819) 825-7618

Email: [email protected]

Investor Relations

Jag Sandhu, JNS Capital Corp.

Tel: 778-218-9638

Email: [email protected]

Website: www.scorpiogold.com

Neither TSX Venture Exchange nor its Regula tion 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. Th is 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. Such forward-looking statements involve

known and unknown risks, uncertainti es and other factors that coul d 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 related to open

pit mining and heap leach processing operati ons 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 securiti es laws, the Company disclaims any intent or obligation to update any forward-looking statement,

whether as a result of new information, future events or resu lts 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.