Scorpio Gold Intersects High-Grade Gold including 9.64 g/t over 6.86 meters at the Bunkhouse Hill Area, Mineral Ridge Project

The Bunkhouse Hill area extends northeast of the Mary LC pit. Drilling in 2015 intersected significant mineralization extending 250 meters northeast of the Mary LC pit at vertical depths of 50 to 150 meters (see June 29, 2015 news release). Fifteen RC holes were drilled in 2016 to further test and delineate the economics for extending the Mary LC pit into this area.

Geologically, the Bunkhouse Hill target is the immediate down-dip extension of the mineralization present in the Mary LC pit. The mineralization at Bunkhouse dips at 39° NE vs. the more typical 25-30° NE dip of the Mary LC mineralization. This dip change is spatially related to a change in geology, whereby the mineralized zone transitions from being hosted in felsic intrusive rocks to sedimentary rocks of the Wyman formation. Mapping work has shown how important this rheological contrast is in the formation of ore zones. The Bunkhouse target is currently defined over a ~150 x 450 meter area and mineralization remains open down dip to the northeast. Additional drilling is slated for 2017.

Highlights from 2016 RC drilling in the Bunkhouse Hill area include:

• MR162080: 5.15 grams per tonne ("g/t") gold over 5.98 meters true width
• MR162081: 9.64 g/t gold over 6.86 meters
• MR162088: 4.30 g/t gold over 5.61 meters
• MR162096: 4.53 g/t gold over 4.27 meters
• MR162100: 5.13 g/t gold over 6.72 meters

Map Links:

Drill hole location plan: DH Plan

Drill hole trace plan with gold projected vertically: DH Trace

Cross Section Center: XS Center

Cross Section +150 ft: XS +150

Cross Section -150 ft: XS -150

Table 1. Bunkhouse Hill Target Area - Significant Drill Results

All holes presented in Table 1 were completed by reverse circulation (RC) drilling. Estimates of true width ("TW") range from 59% to 98% of actual downhole width. Scorpio Gold utilizes the analytical services of ALS Minerals (Reno, Nevada), an ISO/IEC 17025:2005 (CAN-P-4E, CAN-P-1579) accredited testing laboratory, and Bureau Veritas (Reno, Nevada), an ISO 9001 certified testing laboratory that operates in compliance with ISO/IEC 17025:2005 standards. External check assays to verify lab accuracy are routinely completed. Further details are presented in the Company's quality assurance and quality control program for the Mineral Ridge project, available at: MR QAQC.

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 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 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

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 potential further exploration or extension of the Mary LC pit into the Bunkhouse Hill area. 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.



Contact

Scorpio Gold Corp.
Chris Zerga, President
(819) 825-7618
czerga@scorpiogold.com
www.scorpiogold.com
Investor Relations: JNS Capital Corp.
Jag Sandhu
(778) 218-9638
jagjns@outlook.com