Pedra Branca, Brazil– PGM Project
With encouraging exploration results and a land rush to acquire mineral rights in the region by some of the largest mining companies in the world, Solitario quadrupled its land holdings from 45,365 to 178,514 hectares at the Pedra Branca project which is located in Ceará State in Brazil.

As background, during 2007 we noticed an increase in competitor exploration activity within the region. We stepped up our exploration efforts surrounding our existing claim block to identify new areas with potential to host PGM and nickel mineralization. We were aided by satellite images and also a new Brazilian geochemical report indicating areas of high chrome concentrations in stream sediments (chrome is often associated with PGM mineralization). With this information, and previous information we had gathered during the past eight years, we acquired vast new concession areas in virtually all directions from our original claim block.

When the dust settled on this staking rush, our joint venture controlled substantial new tracts of mineral rights extending over an area 100 kilometers long in a north-south direction and 25 kilometers in an east-west direction. Our new neighbors include Vale (formerly CVRD), Xtrata and Votorantim Metais, all top-tier, global mining companies.

A total of 3,251 meters of core drilling was completed in 35 drill holes at Pedra Branca during 2007. Sixteen different prospect areas were drilled with four returning favorable results. These successful tests were at three Cedro area prospects and an extension of mineralization at Trapia West. All of these successes were in the central core of the project area. 2007 drilling results.

With platinum selling for around $2,000 per ounce and palladium over $450 per ounce, it is easy to see why we are excited about the near-surface mineralization we have delineated thus far on our Pedra Branca project. Nearly 250 holes have now been completed on the project.??We believe discovery of another new PGM-deposit could put us over the top in moving the project from advanced exploration to pre-feasibility. That is another reason why we're so enthusiastic about the vast new mineral rights we acquired in 2007.

Although we have not yet conducted much follow-up surface exploration work on our new concessions, what little work we have done has borne fruit with the discovery of a new chromitite boulder field where our only sample of the boulder field yielded an assay of 8.6 gpt platinum and 6.4 gpt palladium. In addition, we have discovered an area with nickel mineralization where our only sample of subcropping boulders yielded 0.98% Ni. With this excellent start, we are optimistic about the potential of our new land holdings.

Anglo Platinum has once again agreed to fund our exploration program with a $1.5 million budget. Work will focus on regional reconnaissance exploration over our new property position and about 2,000 meters of core drilling offsetting areas of new mineralization discovered in 2007.

Anglo Platinum has spent approximately $2.5 million on exploration since signing the initial Letter Agreement in January 2003 and has earned a 15% interest in the project. Anglo Platinum has the option to incrementally earn up to a 51% interest in the project by spending an additional $4.5 million (total of $7.0 million) on exploration at Pedra Branca by June 30, 2010. Anglo Platinum can earn an additional 9% interest (for a total of 60%) by completing either (i) a bankable feasibility study or (ii) spending an additional $10.0 million on exploration and development, whichever occurs first. Anglo Platinum can also earn an additional 5% interest (for a total of 65%) by arranging for 100% financing to put the project into commercial production.