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Scorpio Gold’s 2017 Phase I Drilling Encounters High-Grade Gold Proximal to Underground Mine Workings at the Goldwedge Project, Nevada

Exploration Programs

TSX-V: SGN

1462 de la Quebecoise

Val-d’Or, QC, J9P 5H4

T: 819- 825-7618

www.scorpiogold.com

News Release No. 242

Scorpio Gold’s 2017 Phase I Drilling Encounters High-Grade Gold Proximal

to Underground Mine Workings at the Goldwedge Project, Nevada

Vancouver, July 27, 2017 - Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX-V: SGN)

is pleased to report final results from its 2017 Phase I exploration drilling program at the Goldwedge project,

located in Manhattan Nevada.

The drill program was designed to target the extension of the favorable lithologic unit in the Goldwedge

Mine, specifically the Zanzibar limestone bound within the Reliance Fault Zon e. This zone plunges

northward into the Manhattan caldera margin. Seven RC holes totaling 7,530 ft (2,295 m) were drilled from

5 pad locations.

Significant mineralization was encountered in 3 of the holes (GW17024, GW17026 and GW 17029) that

intercepted the targeted Zanzibar limestone within the Reliance Fault Zone. GW17029 targeted an area near

elevated underground rib samples west of the Reliance Fault Zone , and intersected significant

mineralization within 65 feet of the mineralized rib and above the lowest working underground level.

Table 1. 2017 Goldwedge Surface RC Drilling - Significant Results (>0.1 oz/t)

Hole

No.

Azm

(deg)

Dip

(deg)

From

(ft)

To

(ft)

Width

(ft)

From

(m)

To

(m)

Width

(m)

Gold

(oz/t)

Gold

(g/t)

GW17024 192 90 725 730 5 221.00 222.50 1.52 0.274 9.39

GW17026 225 55 460 470 10 140.21 143.26 3.05 0.324 11.11

GW17029 040 55 265 280 15 80.77 85.34 4.57 0.325 11.14

620 625 5 188.98 190.50 1.52 0.157 5.38

Three of the 7 holes (GW17027, GW17028, and GW17030 ) deviated and stayed in the Tertiary volcanic

rock and did not drill the intended target. A fourth hole (GW17025) was drilled to intercept the Zanzibar

limestone outside of the Reliance Fault Zone. No significant mineralization was encountered in these four

holes.

Map Links:

Drill Hole Plan

Drill Hole Cross Section

All holes presented in Table 1 were completed by reverse circulation (“RC”) drilling. Widths are presented

as down hole lengths; true widths are unknown at this time. Analytical results were performed by ALS

Minerals in Reno, Nevada, an ISO/IEC 17025:2005 accredited facility. Further details are presented in the

Company’s quality assurance and quality control program for the Goldwedge project available at: GW

QAQC.

Scorpio Gold Corporation 2

About Scorpio Gold

Scorpio Gold holds a 70% interest in the producing 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 Mineral R idge 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 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’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 release.

ON BEHALF OF THE BOARD

SCORPIO GOLD CORPORATION

Brian Lock,

Interim CEO

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 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 sim ilar

words or statements that certain events or conditions “may” or “will” occur, and include, without limitation, statements rega rding

the Company’s plans with respect to the exploration, development and exploitation of its Goldwedge project. 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

involved in mineral exploration and development programs 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.