Chambara, Peru– Zinc Project
With the outstanding success Solitario and Votorantim Metais (“Votorantim”) have enjoyed at Bongará, it made sense to team up again to make new zinc discoveries in what we consider to be one of the best under-explored zinc terrains in the world. In March of 2008, we signed an exciting new joint venture arrangement with Votorantim on our regional Chambara zinc project. As with all our other agreements with major mining company partners, this agreement is a NPI-Royalty structured joint venture.

Under this innovative arrangement, Solitario contributed 9,300 hectares of mineral rights that included four prospects with significant high-grade zinc mineralization at surface and a vast regional geologic and geochemical data base covering much of the Area of Interest (“AOI”) measuring 200 kilometers in a north-south direction and 85 kilometers in an east-west direction. Votorantim contributed 51,000 hectares of mineral rights within the AOI to the Chambara project. All assets of this newly formed venture are held by a new private Peruvian company, Minera Chambara, that is 85%-owned by Solitario and 15%-owned by Votorantim.

Votorantim will be the operator of all exploration and development within the AOI. Any new properties acquired by Votorantim during its exploration program will become an asset of Minera Chambara.

Votorantim has the option to earn a 49% interest in Minera Chambara by spending a total of $6.25 million on exploration over the next seven years. Votorantim will then have the right to earn an additional 21% (total 70%) by funding a feasibility study and arranging construction financing for Solitario's 30%-interest at LIBOR+3.5%. Solitario will repay the loan facility through 80% of its cash flow distributions.