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Growing Silver-Zinc Producer in Mexico

Growing Silver-Zinc Producer in Mexico. Nuestra Senora Project. October 2009.

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Growing Silver-Zinc Producer in Mexico

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  1. Growing Silver-Zinc Producer in Mexico Nuestra Senora Project October 2009

  2. Except for the statements of historical fact, the information contained herein is of a forward-looking nature. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of the Company to be materially different from any future results, performance or achievements expressed or implied by statements containing forward-looking information. Such factors include metal prices, exploration success, continued availability of capital and financing and general economic, market or business conditions. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that statements containing forward looking information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on statements containing forward looking information. Readers should review the risk factors set out in the Company’s Annual Information Form (AIF) as filed on SEDAR. Cautionary Note to U.S. Investors Concerning Estimates of Inferred Resources This presentation uses the term “Inferred Resources”. U.S. investors are advised that while this term is recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize it. “Inferred Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of “Inferred Resources” may not form the basis of feasibility or other economic studies. U.S. investors are also cautioned not to assume that all or any part of an “Inferred Mineral Resource” exists, or is economically or legally mineable. Forward-Looking Statement

  3. Company Snapshot Portal Entrance to Nuestra Senora * Convertible debenture due May 2011; (7% coupon, payable semi-annually, C$1.55 conversion price) 3

  4. Investment Highlights • Commercial production declared Jan/09 • Focus now on increasing throughput and resource expansion • Current throughput 800 tpd, ramping up to 1,600 tpd by Jan/2010 • Mill capacity designed for expansion (engineered to expand up to 4,000+ tpd) • 2010E production: 3.8 M oz Ag Eq • Experienced management team and board • Val-d'Or trained employees and Canadian mining standards implemented • Strong shareholder base • Mexico is a low risk jurisdiction • Attractive stock valuation 4

  5. Experienced Management Team & Board Peter Hawley, BSc, PGeo – Chairman and CEO • Consulting geologist to companies including Teck Corp., Noranda Inc., Placer Dome Inc. and Barrick Gold Corp. Roger Scammell, BSc, PGeo – President & Director • Former Regional Manager of Exploration for Teck Corporation in Mexico, where under his direction, the 72 million tonne San Nicolas VMS deposit in Zacatecas, Mexico and the El Limon gold skarn in Guerrero, Mexico were discovered Gilbert Comtois, BAA, CA – CFO • Ex-Deloitte & Touche mining practice – clients included Richmont Mines and McWatters Mines Paul Bonneville, BEng – Vice-President, Mining • Worked in design and supervision of various site construction and underground development projects, including development-stage Lapa and Goldex projects of Agnico-Eagle and Casa Berardi project of Aurizon Mines Robert Bryce, BSc, MBA, PEng – Director • Built Louvicourt Mine for Aur Resources and past General Manager of BHP’s Selbaie Mine Neil Seldon – Director • President of Neil S. Seldon & Associates Ltd. (NSA) and Chairman of Bloomsbury Minerals Economics Lisa Riley, BA – Director • Former VP and Director at TD Bank and VP at RBC Capital Markets, both in London, UK, and Lehman Brothers in NY James Henderson – Director • Founder of Transocean Securities Pty Limited and Focal Management Pty Limited 5

  6. Strong Shareholder Base 6

  7. Project Overview – Nuestra Senora • 100% owned silver-zinc-lead-copper mine • Located in Cosala Mining District of Sinaloa State, Mexico • 10 km from town of Cosala, 160 km from Mazatlan (Deep sea port in Mazatlan) • 55 km from railroad line for shipping to smelters in Mexico or the US • 34 km from hydro dam • District is host to more than 200 poly-metallic deposits • Comprised of three mining exploitation claims (El Angel Tercero, Anexas del Angel and Anexas al Predio) encompassing an area of 1,281 hectares • Additional six exploration claims encompassing 14,174 hectares • Low risk political jurisdiction 7

  8. History of Nuestra Senora Property • 1949: American Smelting and Refining Company (ASARCO) purchased the property and carried out extensive drilling prior to entering production in 1954 • 1965: ASARCO ceased production • 1996: LMX Resources Ltd’s Mexican subsidiary Minera LMX S.A. de C.V. optioned the property • 1997-1998: Property purchased by Scorpio • January 2007: Updated resource estimate published – significantly increasing tonnage • June 2007: Independent pre-feasibility study completed by Genivar • May 2008: Updated resource estimate published – substantial increase to M&I resources • May 2008: Start-up began • January 2009: Commercial production declared 8

  9. Final Concentrates, Copper, Lead & Zinc Copper Scorpio produces three concentrates – all with a significant silver component Lead Zinc 9

  10. Reserves & Resources • Focus has shifted from getting into production, to increasing the resource base ~ 8 year mine life, but this will increase with resource expansion Reserves based on Genivar’s June 2007 pre-feasibility study; Resources based on Watts, Griffis & McOuat’s June 2008 technical report * Based on US$14.50/oz Ag, US$1000/oz Au, US$0,50/lb Zn, US$0.60/lb Pb and US$1.60/lb Cu 10

  11. Infrastructure Built for Expansion Crushing Circuit Can Handle ~4,000 TPD Space Left for Third/Fourth Ball Mill Space for Extra Floatation Circuits Tailings Good for 25 Years at 2,000 TPD 11

  12. Fully Automated Underground Operation Electric Jumbos for Advancement Remote Control Mucking Cubex 6200 in Operation Development Face 12

  13. Top Notch Mechanic Shop Garage Located on Level 8 Mechanic Shop (8th Level) Mechanic Shop (8th Level) Computerized Inventory System 13

  14. Nuestra Senora – Exploration Upside All Zones Remain Open for Resource Expansion NEW ZONES RAMP PORTAL HOAG ZONE NUESTRA SENORA ZONE Multi-stacked thrust planes control the mineralization 14

  15. Excellent Quarterly Performance in 2009 Silver Production (oz) Zinc Production (lb) 40% 31% Lead Production (lb) Copper Production (lb) 18% 75% 15

  16. Excellent Quarterly Performance in 2009 Tonnes Processed Ag Eq Production* 36% 44% 2009 YTD Production by Metal Type 1,107,750 Ag Eq oz* * Based on US$13.00/oz Ag, US$0,80/lb Zn, US$0.80/lb Pb and US$2.20/lb Cu 16

  17. Compelling Valuation 17

  18. Contact Details TSX: SPM 18

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