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The historic Pachuca mining district, located about 80 kilometers north of Mexico City near the city of Pachuca, was one of the most prolific silver districts in the world with substantial gold production. Past production totals at least 1.4 billion ounces of silver and just over 7.0 million ounces of gold. Solitario's property encompasses about 30 percent of the historic district, but more importantly, covers over 95% of the potential extensions of the district to the north (“Pachuca Norte”), a large area situated about 10 kilometers north of the historical district. The Pachuca Norte area was essentially dormant for the past 80 years because its previous owners focused on mining the historic district and just held this property without conducting any serious exploration. Fortunately, we were able to stake the property the day after the previous owners let the mineral rights lapse. Newmont's drilling program was the first modern day exploration to test the Pachuca Norte district; consequently, Solitario believes these results to be very significant.

Besides Newmont's initial drilling program in 2007, a comprehensive surface exploration program was completed over about 75% of the prospective terrain in the Pachuca Norte area. Thirty-two named prospect areas have thus far been geologically mapped and sampled by Newmont. At least 13 kilometers of strong surface vein trends have been mapped by Newmont in detail. The mineralization defined by Newmont is very similar, if not identical, to that found in the historic district.

A 5,000 meter two-rig core drilling program resumed in early March 2008 and is expected to continue into July 2008. Twelve deep drill holes are currently planned. Newmont is also slated to complete its detailed surface mapping and sampling program by mid-year. We remain very excited about the potential of the Pachuca Real project and believe it could be a market impacting project for our shareholders.

Newmont has spent nearly $2.0 million on exploration since the venture agreement was signed in September 2006. The Agreement calls for optional annual work commitments totaling $12.0 million over a 4.5 year period for Newmont to earn a 51% interest in the project. Newmont will then have the right to earn an additional 14% (total 65%) by spending at least $5.0 million annually until such time as a positive feasibility study is completed for the project. Solitario has the right to require Newmont to fund its share of construction costs; if we exercise this right, Solitario will retain a 30% interest in the property.