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Nov 26, 2012

Scorpio Gold Provides Update for the Mineral Ridge Operation

Vancouver, November 26, 2012 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) announces additional drill results from its 2012 drilling program on the Drinkwater Highwall Zone; provides an update on advancing the exploration of its satellite deposits; and reports on a new discovery of high-grade gold and silver mineralization at the 70% owned Mineral Ridge project, Nevada.

Satellite Deposit Update

Telesto Nevada Inc. (Telesto) has completed block modelling and open pit design and optimization for the satellite Brodie, Bluelite, Wedge, Oromonte and Solberry deposits at Mineral Ridge. Following review of the data, Scorpio Gold has commissioned Telesto to proceed with a NI 43-101 compliant mineral resource estimate. Telesto has set a target date of mid-Q1 2013 for completion of the estimate.

Telesto's block modelling of the satellite deposits utilized 10-foot bench composites as the data source and a maximum search range of 80 feet. A cap of 0.25 ounces per ton (OPT) gold was applied to the models. Cut-off grades and economic parameters were based on AMEC's Life of Mine Plan Study dated July 15, 2012 (see October 1, 2012 news release), and a US$1,500 per ounce gold price. Based on these parameters, floating open-pit cones were draped over each deposit using an overall pit slope of 49 degrees. The pit shells produced in the analysis are currently being reviewed by the Company, with certain deposits intended to be the subject of aggressive drilling in 2013 to facilitate mine planning for open pit extraction. All of the satellite deposits lie to the west and southwest of the Drinkwater Pit and are situated within 400 metres of the leach pad.

Drinkwater Highwall Zone Drill Results

Scorpio Gold's drilling to date has determined that the Drinkwater Highwall, Drinkwater, Mary and Mary LC zones represent one continuous zone of mineralization. The results presented in Table 1 are step out holes north of the historical outline of the Drinkwater Highwall Zone mineralization, (see October 30, 2012 news release). Assays have yet to be received for drill hole MR12467. A drill hole plan is available on the Company's website: View Map.

Table 1. Drinkwater Highwall Zone - Significant Drill Results

Hole No. From (ft) To (ft) Width (ft) From (m) To (m) Width (m) Gold (OPT) Gold (g/t)
MR12468 0 15 15 0.00 4.57 4.57 0.023 0.78
MR12469 0 15 15 0.00 4.57 4.57 0.086 2.96
  455 470 15 138.72 143.29 4.57 0.016 0.55
  480 485 5 146.34 147.87 1.52 0.016 0.55
  615 620 5 187.50 189.02 1.52 0.027 0.93
MR12470 Nil              
MR12474 140 155 15 42.68 47.26 4.57 0.173 5.93
  580 585 5 175.83 178.35 1.52 0.015 0.51
  625 650 25 190.55 198.17 7.62 0.010 0.36
MR12475 340 345 5 103.66 105.18 1.52 0.018 0.62
  400 405 5 121.95 123.48 1.52 0.019 0.65
  465 470 5 141.77 143.29 1.52 0.015 0.51
  520 525 5 158.54 163.11 1.52 0.026 0.89
  555 560 5 169.21 170.73 1.52 0.055 1.89
  570 575 5 173.78 178.35 1.52 0.017 0.57

New Discovery

Recent prospecting and grab sampling in an area approximately 400 meters west-southwest of the leach pad has led to the discovery of high-grade gold and silver mineralization in two new zones. In comparison to the Drinkwater and Mary mineralization, where the gold to silver ratio is approximately 2:1, high-grade gold mineralization at the new Lookout Zone is accompanied by significantly higher silver content. In contrast, the new Bottom Zone discovery hosts high-grade silver mineralization with no gold. These discoveries suggest that silver values are generally increasing westward, and occurrences of very high (bonanza) grades of both gold and silver are also more common to the west. The host rock to the newly discovered mineralization is the Mary Limestone unit, which also hosts the Drinkwater and Mary deposits. Sample designations A and B in Table 2 represent sampling of one mineralized unit, with the estimated higher grade mineralization being labelled A, and the lesser mineralized sample being labelled B. The Company will incorporate this area into its 2013 exploration plans for follow up.

Table 2. Lookout and Bottom Zones - Significant Assay Results from Surface Sampling

Sample No. Zone Sample Type Gold (OPT) Gold (g/t) Silver (OPT) Silver (g/t)
MR17-195 Lookout Grab 0.303 10.39 0.27 9.26
MR17-196 Lookout Grab 0.415 14.23 0.33 11.31
MR17-197-A Lookout Grab 0.304 10.42 Nil Nil
MR17-197-B Lookout Grab 0.295 10.11 5.21 178.63
MR17-198 Lookout Grab 0.544 18.65 0.47 16.11
MR17-199-A Lookout Grab 3.146 107.86 2.83 97.03
MR17-199-B Lookout Grab 0.863 29.59 0.92 31.54
MR17-200 Lookout Grab Nil Nil Nil Nil
MR17-201 Lookout Grab 0.042 1.44 0.69 23.66
MR17-202 Lookout Grab Nil Nil Nil Nil
MR17-203 Bottom Grab Nil Nil Nil Nil
MR17-204 Bottom Grab Nil Nil Nil Nil
MR17-205-A Bottom Grab Nil Nil 39.75 1,362.86
MR17-205-B Bottom Grab Nil Nil 8.16 279.77

All holes presented in Table 1 were completed by reverse circulation (RC) drilling. True width is estimated at ~90% of downhole width. Analytical results were performed by American Assay Laboratory Inc. ("AAL") in Sparks, Nevada, USA. AAL does not have ISO/IEC 17025 accreditation but implements a quality management system following ISO/IEC 17025 standards and maintains a paperwork trail for ISO/IEC 17025 accreditation. AAL participates in a number of testing and certification programs, details of which are presented in the Company's quality assurance and quality control (QA/QC) program for the Mineral Ridge project: View PDF. External check assays to verify lab accuracy are routinely completed by ALS Chemex, an ISO 9001:2000 certified and ISO/IEC 17025:2005 accredited laboratory.

Scorpio Gold's CEO, Peter J. Hawley, P.Geo., is a Qualified Person for the Mineral Ridge project and has reviewed and approved the content of this release. For additional information please see the Company's website at www.scorpiogold.com.


Peter J. Hawley,

For further information contact:
Steve Roebuck Tel: (819) 825-7618

Investor Relations:
Jim Macdonald, Torrey Hills Capital
Tel: (858) 456-7300

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. 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 such as delays related to completion of mineral resource estimates, exploration 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.