Scorpio Mining Corporation

Scorpio Mining Corporation - Scorpio Gold Corporation Sign Letter of Intent with Bactech Mining Corporation for Sale of Gold Assets

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Vancouver, September 6, 2007 - Scorpio Mining Corporation ("SMC"),(TSX:SPM) and Scorpio Gold Corporation ("SGC") a 93.5% owned private subsidiary of SMC are pleased to announce that they have signed a Letter Of Intent ("LOI") with BacTech Mining Corporation ("BacTech", TSX.V: BM) whereby BacTech will acquire certain gold assets in Nova Scotia and Quebec (the "Gold Assets"), in exchange for common shares in BacTech. The transaction with BacTech will see SMC become the controlling shareholder in BacTech. SMC has recently transferred its interests in the Caribou, Cochrane Hill and Lac Arsenault gold properties to SGC for 26,830,763 shares of the company.

BacTech, subject to shareholder and TSX Venture Exchange approvals, and certain other customary conditions, will issue to SGC shareholders including SMC, 2.6 shares of BacTech for each share of SGC held at a deemed value of $0.18 per share, resulting in SGC shareholders acquiring approximately 56% of the common shares of BacTech (approximately 50.7% on a fully diluted basis). The signing of a definitive agreement will be preceded by a 35 day due diligence period. The transaction is expected to close within 120 days, and is subject to customary conditions, including definitive documentation, receipt of all requisite regulatory approvals, including the approval of the TSX Venture Exchange and the Toronto Stock Exchange, and approval by the shareholders of BacTech and SGC. BacTech has obtained voting support agreements supporting the transaction from shareholders representing more than 40% of the outstanding shares of BacTech. SMC has also agreed to support the transaction as the controlling shareholder of SGC.

The resulting company, to be called Scorpio Gold Corporation, will continue to pursue BacTech's strategy of acquiring refractory gold and complex base metal projects for application of its proprietary bioleaching technology. The resulting company will also have an excellent portfolio of advanced stage development properties in Canada, and access to SMC's expertise in Mexico for acquiring, developing, or operating complementary projects in Mexico.

Commenting on the proposed transaction, Peter J. Hawley, Chairman and CEO of Scorpio Gold Corporation and Scorpio Mining Corporation said, "This is a win -- win situation for Scorpio shareholders. Not only do the spun-off gold assets become publicly financeable thereby reducing share dilution for SMC, the transaction also allows the SMC shareholders to reap the value of the gold assets which were not previously valued by the market. The transaction also allows us to open another avenue to develop the gold focus of SGC and to pursue cost effective, environmentally friendly exploitation of precious and base metals. We certainly look forward to developing Scorpio Gold Corporation into a solid metal player within these exciting times. SMC will now focus on bringing its flagship Nuestra Senora silver-zinc project into production."

Ross Orr, President and CEO of BacTech comments, "After an extensive search for a new direction for BacTech, we are pleased to announce this new initiative for the Company. We will still be able to pursue the four refractory projects we are currently working on, and, at the same time, develop near term production gold assets internally. Peter Hawley, Chairman and CEO of SMC, has over 20 years of experience in Mexico, and he will be instrumental in assisting us in identifying projects, both refractory and conventional, for the new Company. In addition, SMC has built a solid infrastructure in Mexico which will provide us with access to resources that have only been available through consultants in the past."

The proposed management of the resulting company is as follows:

Peter J. Hawley, Chairman and CEO
M. Ross Orr, President
Louis R. Nagy, Chief Financial Officer
Stephen Roebuck, Vice President, Development.
Dr. Paul Miller, Vice President Technology and Engineering

The proposed Board of Directors of the resulting company is as follows:

Peter J. Hawley, Chairman
M. Ross Orr
John C. Gingerich
D. Roger Scammell
Samuel W. Ingram
(plus 2 mutually agreed independents)

The new company will be based in Toronto at BacTech's current location and will continue to be listed on the TSX Venture Exchange.

The Scorpio Gold Assets

Caribou Gold Mine: Located 80 km north of Halifax. Scorpio has the right to earn a 100% interest in this past-producing high grade gold mine, with excellent potential to expand and upgrade the current National Instrument 43-101 (NI 43-101) inferred mineral resources of 350,305 tonnes grading 8.41 g/t gold, uncut (94,763 contained ounces of gold). An aggressive exploration and development plan has begun that includes surface diamond drilling, dewatering of the old mine shaft, erection of a head frame, a hoist system, supporting surface infrastructure, underground mapping and diamond drilling. Completion of this program will require additional financing and various avenues are being considered for this fundraising. A bulk sample decision will be made based on the results of this program.

Cochrane Hill Deposit: 100% owned, located in Guysborough County, Nova Scotia. Recently, this advanced property was optioned to Atlantic Gold of Australia. The current NI 43-101 resource study estimates an indicated mineral resource of 588,794 tons grading 0.191 oz/ton gold (112,460 contained ounces of gold) and an inferred mineral resource estimate of 29,422 tons grading 0.165 oz/ton gold. Atlantic Gold will work to increase these resources through a planned $4.75M exploration program and will make $100,000 in cash payments over a four year period to earn a 60% interest in the project. Atlantic Gold's main focus will be to look at the economic viability of an open pit mining operation.

Lac Arseneault Property: Located in the Gasp� region of eastern Quebec, the property is a mid-stage exploration project in which Scorpio has an option to earn a 100% interest. High-grade gold-silver-zinc-lead mineralization is hosted in an extensive system of quartz veins and breccia zones. Previous work includes mapping, geophysics, trenching and diamond drilling.

SMC has had a presence in Mexico for over nine years and, as such, has evaluated numerous properties which do not fit its mandate but could potentially fit Scorpio Gold's plans. Initial reconnaissance by SMC has identified five gold showings worthy of follow up by Scorpio Gold. Mexico is host to many refractory deposits in both gold and base metals, and an extensive search will begin to locate a suitable project following the completion of this transaction.

The Qualified Person, as defined under National Instrument 43-101 is President of Scorpio Mining Corporation, Mr. D. Roger Scammell, PGeo. Mr. Scammell is responsible for the current exploration and development programs and the preparation of all technical information provided in this release and has reviewed and approved the contents of this news release.

BACTECH PROFILE

BacTech has developed and patented bacterial oxidation technology for the treatment of refractory ores and concentrates to enhance the recovery of gold, silver and base metals. BacTech has successfully commissioned three bioleach plants for gold and demonstrated its technology in the selective recovery of base metals from complex sulphide concentrates in a joint project with Industrias Pe�oles de C.V. of Mexico that was completed in 2001. BacTech's focus is the acquisition of equity positions in projects amenable to bioleaching. Recently, the company expanded its focus through the establishment of a uranium joint venture with Quinto Mining Corporation in Quebec.

Further information on the Company and the Nuestra Se�ora project is available on the Scorpio Mining web site at: www.scorpiomining.com.

ON BEHALF OF SCORPIO MINING CORPORATION

Peter J. Hawley
Chairman & CEO

For further information contact:
Glenn Little, Jackson Little Holdings Ltd: 604-930-4375; 1-888-930-4375
Email: jlconsulting@telus.net
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: yes@yesinternational.com

This news release includes certain statements that may be deemed "forward-looking statements". All statements in this news release, other than statements of historical facts, that address future exploration drilling, exploration activities and transactions, events or developments that the Company expects, are forward looking statements. Although SMC believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration success, continued availability of capital and financing, and general economic, market or business conditions as well as those other risk factors set out in SMC's annual information form for the year ended December 31, 2006. The reader is cautioned not to place undue reliance on forward looking statements.