Solitario Reduces Royalty and Options Significant Gold and Molybdenum Deposit on Its Mt. Hamilton Project, Nevada

Solitario Exploration & Royalty Corp. ('Solitario;?) (NYSE Amex:XPL)
(TSX:SLR) and Ely Gold & Minerals Inc. ('Ely Gold? - including Ely
Gold′s 100%-owned US subsidiary DHI US) (TSX.V:ELY) are pleased to
announce that their joint venture, Mt. Hamilton LLC ('MH LLC?), has
bought-down an existing 2.0% NSR royalty obligation on gold and silver
production on the Mt. Hamilton gold project and has completed an initial
evaluation of the Shell gold-molybdenum property optioned in the first
quarter of 2011. The Shell property comprises eight strategically
located mining claims on the south side of the Mt. Hamilton project
area. Completion of the royalty buy-down along with the new potential on
the Shell property significantly enhances overall project economics and
exploration potential. Mt. Hamilton is situated at the southern end of
the prolific Battle Mountain gold trend in eastern Nevada where
Solitario is currently managing feasibility work.

Terms of the Royalty Reduction Purchase

MH LLC purchased the 2.0% NSR royalty for $2.52 million, consisting of
$1.52 million in cash and $1.0 million by the delivery of 344,116 shares
of Solitario. Solitario contributed the entire purchase price and loaned
Ely Gold its 20% proportionate share. The loan to Ely Gold will bear
interest at 6% per annum and will be repaid from Ely Gold′s future
production proceeds. With the completion of the 2.0% NSR royalty
reduction purchase, the royalty rate on gold and silver mineralization
on the Mt. Hamilton gold project will be reduced to 1.0%, assuming MH
LLC fully exercises its current option to further reduce the royalty
from 6.0% to 1.0% for cash payments totaling $5.0 million to underlying
royalty holders. The $5.0 million NSR royalty reduction option is
exercisable at any time prior to commercial production. Closing of the
royalty purchase, including the issuance of Solitario′s common shares,
is subject to customary approvals including required regulatory approval
by the NYSE Amex Equities exchange and the Toronto Stock Exchange.

Shell Property

The Shell property contains significant deposits of both high-grade gold
and molybdenum that were partially defined by drilling conducted 30 to
40 years ago, principally by Union Carbide. Confirmatory drilling was
subsequently conducted in 2006 and 2007. Of the 40 holes drilled on the
property, 23 contain significant intercepts of gold and/or molybdenum.
The Shell property, situated less than a mile from Mt. Hamilton′s
Centennial deposit, is subject to two leases previously controlled
solely by Ely Gold.

Shell Mineralization

The ten best pre-1983 drill hole intercepts are presented in Table
1 (gold) and Table 3 (molybdenum)
and are historical in nature, requiring additional infill drilling
before resources for the Shell gold deposit can be measured in a NI
43-101 compliant estimate. Drill hole data presented in Table
2 (gold) and Table 4 (molybdenum)
are from a 2006/2007 drill hole assay verification program conducted
prior to Solitario′s participation in the project. The results of the
verification program substantially confirm previous drilling.

All drill thicknesses are thought to represent at least a 90% true
thickness of the mineralized interval.

All drill thicknesses arethought to represent at least a 90%
true thickness of the mineralized interval.

*DDH-U-7 intersected 2.0 feet (1427.6′-1429.6′) of gold grading 0.170
oz./ton.

All drill thicknesses are thought to represent at least a 90% true
thickness of the mineralized interval.Mineralized intersections
less than 8.0 feet diluted to a minimum mining width of 8.0 feet.

All drill thicknesses are thought to represent at least a 90% true
thickness of the mineralized interval.

The gold and molybdenum deposits are spatially associated, with a gently
dipping tabular gold deposit situated coincident with, and more
commonly, immediately below molybdenum mineralization. Geologically,
gold mineralization on the Shell property occurs along an unconformity
between two rock formations associated with a paleo-surface and karst
(cave) features. Molybdenum mineralization is controlled by low angle
fault structures in skarn rock.

Chris Herald, President and CEO of Solitario commented, 'The reduction
in the NSR royalty rate at Mt. Hamilton adds significant economic value
by reducing future total cash operating costs by nearly $30 per ounce at
today′s gold prices. With the Shell property acquisition, considerable
upside for future high-grade resource expansion has been added to the
project. The gold mineralization at Shell is a natural fit with the Mt.
Hamilton-Centennial gold deposit that we plan to take through
feasibility. The molybdenum mineralization also complements other known
molybdenum-tungsten occurrences on the Mt. Hamilton property. Both the
gold and molybdenum grades for the Shell deposits are impressive and
potentially underground mineable. We anticipate additional exploration
work to further define and expand resources on the property based on
further analysis of the historical data.'

'These developments point directly to Solitario′s commitment to moving
the Mt. Hamilton assets into production?, according to Trey Wasser, Ely
Gold′s President & CEO. 'The royalty reduction adds significantly to the
already robust economics of the project and the Shell properties could
allow for additional resource growth beyond what has been outlined in
the current reports.?

The information contained in this release has been reviewed by Walter
Hunt, Chief Operating Officer for Solitario, who is a qualified person
as defined by National Instrument 43-101. Whereas the drilling programs
were not directly supervised by Solitario, based upon the review, the
information is believed to be substantially accurate.

Terms of the Shell Leases

The Shell property was acquired from Ely Gold by MH LLC, after amending
some of the terms of its two underlying leases. Solitario and Ely Gold
equally contributed the $160,000 advanced royalty payments due the
underlying owners. In the future, MH LLC will be responsible for making
advanced royalty payments of $160,000 per year to the lease holders for
the next five years and conducting annual exploration work on the
property ranging from $5,000 for the first year to $75,000 for year five
and beyond. Both Shell leases are subject to a 4.5% NSR royalty that can
be reduced to 0.5% by making a $3.0 million cash payment to each royalty
owner prior to commercial production. MH LLC has the right to terminate
the Shell leases at any time.

Terms of the Mt. Hamilton Joint Venture

Solitario and Ely Gold formed MH LLC, a limited liability company which
now holds 100% of the Mt. Hamilton project assets under an Operating
Agreement ('MH-Agreement?). Per the terms of the MH-Agreement, DHI-US,
Ely Gold′s wholly owned US subsidiary, currently has a 90% initial
interest in MH LLC and Solitario has a 10% initial interest. Solitario
can earn up to an 80% interest in MH LLC by completing a feasibility
study, arranging project financing, and making future property and
advanced royalty payments.

About Solitario

Solitario is a gold, silver, platinum-palladium, and base metal
exploration and royalty company actively exploring in Brazil, Mexico,
Peru and Nevada. Solitario has significant business relationships with
Votorantim Metais, Compañia de Minas Buenaventura S.A.A., Anglo
Platinum, and Newmont Mining. Solitario has approximately US$17.5
million in net cash (after the royalty buy down) and marketable
securities and is traded on the NYSE Amex ('XPL') and on the Toronto
Stock Exchange ('SLR'). Additional information about Solitario is
available online at www.solitarioxr.com

About Ely Gold

Ely Gold is focused on acquisition and development of gold resources in
the Americas. The Company is currently evaluating other near term
production assets with a partnership business model focused on royalties
and cash flow. Ely Gold is traded on the TSX Venture Exchange ('ELY').
Additional information about Ely Gold is available online at www.elygoldandminerals.com

This press release includes certain 'Forward-Looking Statements'
within the meaning of section 21E of the United States Securities
Exchange Act of 1934, as amended. All statements, other than statements
of historical fact, included herein, including without limitation,
statements regarding potential mineralization and reserves, exploration
results and future plans and objectives of Solitario, are
forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate
and actual results and future events could differ materially from those
anticipated in such statements. Development ofSolitario′s
properties are subject to the success of exploration, completion and
implementation of an economically viable mining plan, obtaining the
necessary permits and approvals from various regulatory authorities,
compliance with operating parameters established by such authorities and
political riskssuch as higher tax and royalty rates, foreign
ownership controls and our ability to finance in countries that may
become politically unstable. Important factors that could cause actual
results to differ materially from Solitario′s expectations are disclosed
under the heading 'Risk Factors' and elsewhere in Solitario′s documents
filed from time to time with Canadian Securities Commissions and the
United States Securities and Exchange Commission.

Solitario Exploration & Royalty Corp.

Debbie Mino-Austin,
800-229-6827

Director ? Investor Relations

Christopher E.
Herald, 303-534-1030

President & CEO

or

Ely Gold &
Minerals Inc.

Steve Kenwood, 604-488-1104

Director

Trey
Wasser, 972-803-3904

President & CEO