Bongara, Peru– Zinc Project
Drilling on our high-grade Bongará zinc project located in northern Peru continues to intersect outstanding zinc-lead-silver mineralization. Highlights of the 2007 32-hole, 11,443 meter drilling program, include drill hole V-21 that cut 92.0 meters grading 5.50% zinc and 1.74% lead, the thickest mineralized interval ever intersected on the project, and V-40 that intersected 6.0 meters grading 23.65% zinc and 5.38% lead, one of the highest grade intercepts over 5-meters in thickness. The program was managed and funded by Solitario's joint venture partner Votorantim Metais ("Votorantim").

Before reviewing last year's outstanding exploration results, it is important to state that we believe 2008 will be a year of transition from exploration to development for the project. Besides Votorantim's aggressive $5.0 million exploration program, pre-feasibility studies, including resource estimation, metallurgy, access, infrastructure and socio-economic studies, will all be proceeding to an advanced stage. This transition will hopefully lead to a production decision within the next 18 months.

Since September of 2006, work conducted by Votorantim has demonstrated that high-grade zinc mineralization is widespread as both stratigraphically controlled deposits and also as thicker structurally controlled breakout zones. Mineralization measuring about 1,000 meters by 600 meters in size has now been relatively well defined by Votorantim's drilling, but more widely spaced drill holes surrounding this area of detailed drilling strongly indicate that similar mineralization is present over an area of at least 2.0 kilometers by 2.0 kilometers. These impressive drilling results confirm the excellent size potential of this high-grade zinc deposit, leading us to believe that Florida Canyon represents one of the best undeveloped zinc deposits in the world. 2007 drilling results.

Moreover, the deposit is open to expansion in all directions. Besides the stratigraphic mineralization, three separate "breakout zones" have now been identified in drill holes. These zones display relatively high-grade mineralized bodies extending vertically across thick intervals of stratigraphy where collapse breccias have been replaced by ore minerals. Evidence for these breakout zones is provided in the drill hole breakout zone chart from various locations on the property.

About Votorantim Metais
Votorantim Metais belongs to a privately held Brazilian business conglomerate that is a leader in every market segment in which it operates, including cement, pulp and paper, metals, chemicals, orange juice, and finance. In 2007, Votorantim Group’s revenues amounted to US$15.0 billion. The metals business division accounted for 30% of revenues from production of zinc, nickel, steel and aluminum. Votorantim Metais is the world's third largest primary zinc producer with three operating zinc smelters and two operating zinc mines. It owns the Cajamarquilla zinc smelter and is a major shareholder of Milpo, both located in Peru. Votorantim Metais also acquired US Zinc, a zinc recycling company based in the USA with a plant located in China.

Votorantim Metais has completed approximately US$4.0 million in exploration expenditures since signing the initial Letter Agreement in August 2006. Solitario is entitled to cash payments of $200,000 per year until Votorantim makes a production decision. Votorantim has the option to earn up to a 70% interest in the project by committing to place the project into production based upon a feasibility study and spending a minimum of $18.0 million on exploration and development. Once Votorantim has spent $18.0 million on exploration and
development, and committed to place the project into production, it has further agreed to finance Solitario's 30% participating interest for construction. Solitario will repay the loan facility through 50% of its cash flow distributions.