configuration - Help needed setting up nginx to serve static files

I'm trying to setup nginx to serve static files. Basically
all I need is to have rel="noreferrer">http://mydomain.com/site_media/ point to
/var/django/myproject/site_media.

I have tried
so many configurations and when I test it I always get a 404 error for static
files.

Can anyone please tell me what
I'm doing wrong or how I should be setting this
up?

This is my current nginx configuration
file.

user
            www-data;
worker_processes 1;

#error_log
            /usr/local/nginx/logs/error.log;
#pid
            /usr/local/nginx/logs/nginx.pid;


events {

            worker_connections 1024;
 use epoll;
}

http
            {

 # Enumerate all the Tornado servers here
 upstream
            frontends {

 server 127.0.0.1:8000;
 server
            127.0.0.1:8001;
 server 127.0.0.1:8002;
 server
            127.0.0.1:8003;
 }

 include mime.types;

            default_type application/octet-stream;

 #access_log
            /usr/local/nginx/logs/access.log;


 keepalive_timeout
            65;
 proxy_read_timeout 200;
 sendfile on;
 tcp_nopush
            on;
 tcp_nodelay on;
 gzip on;
 gzip_min_length
            1000;
 gzip_proxied any;
 gzip_types text/plain text/html text/css
            text/xml

 application/x-javascript application/xml

            application/atom+xml text/javascript;

 proxy_next_upstream
            error;

 server {
 listen 80;

 #
            Allow file uploads
 client_max_body_size 50M;



            location ^~ /site_media/ {
 root /var/django/myproject/site_media;

            if ($query_string) {
 expires max;
 }
 }

            location = /favicon.ico {
 rewrite (.*) /site_media/favicon.ico;

            }

 location = /robots.txt {
 rewrite (.*)
            /site_media/robots.txt;
 }

 location / {

            proxy_pass_header Server;
 proxy_set_header Host $http_host;

            proxy_redirect off;
 proxy_set_header X-Real-IP $remote_addr;

            proxy_set_header X-Scheme $scheme;

 proxy_pass
            http://frontends;
 }
 }

 #include
            /usr/local/nginx/sites-enabled/*;

}

Thanks,

Cata