Solitario Announces Mt. Hamilton Feasibility Study Results

Solitario Exploration & Royalty Corp. ('Solitario;? NYSE Amex: XPL;
TSX: SLR) and Ely Gold & Minerals ('Ely Gold;? TSX.V: ELY)
are pleased to announce positive Feasibility Study results on the
Centennial Gold deposit situated on the Mt. Hamilton property in eastern
Nevada, U.S.A. The Feasibility Study demonstrates robust economics with
excellent potential for developing additional resources. Development of
the project will deliver significant economic benefits to the local
economy of White Pine County with an estimated 120 fulltime jobs.

With the completion of this Feasibility Study, Solitario will hold an
80% interest in Mt. Hamilton LLC (the 'Company?), a limited liability
company which holds 100% of the Mt. Hamilton project assets. Ely Gold
will hold a 20% interest in the Company. The Feasibility Study has been
prepared on behalf of the Company by SRK Consulting (U.S.) Inc. (SRK).

Project Economics

All
currency figures in U.S. $′s; Economic base case in bold; M=millions

Life-of-mine cash operating costs on a gold equivalent basis (at a 52:1
silver to gold ratio) are estimated at $535 per gold-equivalent ounce
recovered, well below world-average industry cash costs. The economic
base case assumes a $1,323 life-of-mine gold price and a $25.34 silver
price, generating approximately $226 million in cash flow (operating
margin ? EBITDA) on a pre-tax basis over the mine′s currently
anticipated eight-year mine-life. At gold and silver prices of $1,700
and $33 per ounce, respectively, the project will generate nearly $390
million in life-of-mine cash flow. Initial capital costs are estimated
at $71.9 million, including a contingency of $6.3 million. On average,
silver production contributes approximately 11% to the overall project
revenues.

The Mt. Hamilton gold project will be an open pit mining operation with
heap leach processing and projected gold recoveries of 79%. The reserves
are contained within a well-defined ore body displaying excellent
continuity of mineralization that will be mined within a single open
pit. Processing is straight-forward with two-stage crushing to minus
 ?-inch, no agglomeration and rapid gold leach rates, followed by
conventional ADR (adsorption-desorption-recovery) metal extraction. The
project also incorporates several innovative design concepts to minimize
surface disturbance and environmental impacts, such as a vertical ore
pass and underground conveying system to reduce surface disturbance and
improve air quality. The Company is also pleased to report mineral
resources adjacent to the reserves reported in the Feasibility Study
that have the potential to significantly extend the mine life.

Feasibility Study Highlights:

Base
Case:Gold Price-$1,323; Silver Price- $25.34

Production Rate: 8,500 tons ore per day

Mine Life: 8.0 years

Average
Gold Recovery: 79% (70% of recoverable gold in the first 30 days)

Average
Silver Recovery: 90% of soluble silver (~ 36% of total contained silver)

Life
of mine strip ratio: 2.4:1.0 (waste:ore)

Initial Capital Cost:
$71.9 M (including $6.3 M contingency)

Sustaining Capital: $35.3 M
(including $4.3 M contingency and $10.3 M end-of-mine closure costs)

Working
Capital: $7.1 M

Underlying NSR-Royalty: 1%

Cash Costs per
Gold-Equivalent Ounce Recovered: $535

Average Annual Gold
Production: 48,000 ounces

Average Annual Silver Production: 330,000
ounces

Average Annual Gold-Equivalent Production: 54,000 ounces (at
a 52:1 silver to gold ratio)

The economic analysis in the Feasibility Study assumed a declining price
curve for gold and silver. Realized gold/silver prices were set at
$1,600/$35.45 per ounce for the first year of production, $1,420/$28.25
for the second year, and $1,280/$23.90 per ounce for all subsequent
years. These prices are based on the 12-month, 24-month and 36-month
trailing average of gold and silver prices, respectively. This declining
gold price scenario results in an average life-of-mine price of $1,323
per ounce for gold and $25.34 per ounce for silver.

Chris Herald, President and CEO of Solitario, stated 'Completion of this
comprehensive Feasibility Study represents the culmination of an
intensive one-year effort by our staff and SRK. With this study in hand,
we are now moving forward with permitting the mine, arranging project
financing and adding new reserves. With its robust economics, we believe
we will have an array of financing opportunities available to us. Our
mine plan is well conceived from both an operational and environmental
standpoint, however, we will continue to evaluate a number of
opportunities identified in the Feasibility Study that have the
potential to reduce capital and operating costs. Additionally, we
believe with a modest amount of infill drilling marginal to the current
reserves and confirmation drilling in the historic Seligman pit area, we
will be able to add several years of additional low-cost production.?

'The completion of the Mt. Hamilton Feasibility Study is an exciting
milestone for Ely Gold. The project represents an important building
block in our corporate strategy of participating in North American
precious metal development projects,? stated Trey Wasser, Ely Gold′s
President and CEO.

Mineral Reserves Statement,Centennial
Gold-Silver Deposit,

White Pine County, Nevada, SRK
Consulting (Inc.)

*Reported silver grade is cyanide soluble.

Mineral reserves were estimated from a pit design based on $1,200/oz.
gold and $20/oz. silver prices. The cutoff grade used to estimate
reserves was 0.006 oz/t gold equivalent (0.20 grams/tonne) and is the
internal cutoff grade. Multiple pit scenarios were evaluated using these
criteria under a range of gold prices to determine the most favorable
pit design for both optimal resource extraction and cash flow.

Mineral Resource Statement Centennial Gold-Silver Deposit,

White
Pine County, Nevada, SRK Consulting (Inc.)

• 
  Mineral Resources are not Mineral Reserves and do not have
  demonstrated economic viability. There is no certainty that all or any
  part of the Mineral Resources estimated will be converted into Mineral
  Reserves estimate;
  
• 
  Resources stated as contained within a potentially economically
  minable open pit above a 0.006 oz/t AuEq CoG;
  
• 
  Pit optimization is based on assumed gold and silver prices of
  US$1,600/oz and US$40.00/oz, respectively, effective heap leach
  recoveries of 75% and 30% for gold and silver, respectively, a mining,
  processing and G&A cost of US$5.81/t; Net Smelter Return 1% and pit
  slopes of 50 ?.
  
• 
  Reported Au ounces are contained metal subject to process recovery
  which will result in a reduced number of payable ounces;
  
• 
  * Reported Ag ounces have already received a recovery discount during
  resource modeling; therefore, there will be minimal further reduction
  of payable Ag ounces after processing; and
  
• 
  Mineral resource tonnage and contained metal have been rounded to
  reflect the accuracy of the estimate, and numbers may not add due to
  rounding.
  

The Feasibility Study resource and reserve estimations demonstrate a
potential to increase the size of the existing Centennial deposit
through step-out exploration drilling around the east and southeast
margins of the current pit configuration. This mineralization falls
entirely within a pit design based on $1,600/oz. gold and $40/oz. silver
and is situated immediately adjacent to the reserve pit. Approximately
2.6 million tons of Indicated Resources grading 0.017 oz/t gold (45.3
koz of gold) and 0.153 oz/t silver (397.6 koz of silver) and 2.8 million
tons of Inferred Resource grading 0.018 oz/t gold (50.2 koz of gold) and
0.080 oz/t silver (223.5 oz of silver) above a 0.006 oz/t gold cut-off
have been identified outside of the reserve pit, but within the resource
envelope (Whittle? shell). Drilling is planned in these areas with the
objective to upgrade the mineralization to Measured and Indicated
Resources.

Solitario is also planning a drilling program to upgrade mineralization
around the nearby historic Seligman pit area. The Seligman deposit,
situated approximately 2,000 feet north of the planned Centennial pit,
was partially mined in the mid-1990′s. About 310 drill holes define a
well mineralized, near surface gold deposit that was abandoned due to
low gold prices. Solitario believes these two resource expansion
programs may have the potential to extend mining for three to four years.

Cautionary Note to U.S. Investors concerning estimates of Resources:
This section uses the terms 'Measured, Indicated and Inferred
Resources.? The Company advises U.S. investors that while these terms
are recognized and required by Canadian regulations, the SEC does not
recognize the terms.U.S. investors are cautioned not to assume
that any part or all of Measured or Indicated Mineral Resources will
ever be converted into Reserves.Inferred Resources have a great
amount of uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all or
any part of an Inferred Mineral Resource will ever be upgraded to a
higher category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or pre-feasibility
studies, except in rare cases.U.S. investors are cautioned not
to assume that any part or all of a measured, indicated or
inferred resource exists, or is economically or legally minable.

The Feasibility Study was prepared by SRK Consulting (U.S.), Inc., an
independent and internationally recognized mining engineering firm. The
Feasibility Study provides mineral resource and mineral reserve
estimates, and a classification of resources and reserves in accordance
with the Canadian Institute of Mining, Metallurgy and Petroleum
Standards on Mineral Resources and Reserves: Definitions and Guidelines,
November 27, 2010 (CIM). It also meets the standards of the U.S.
Securities and Exchange Commission Industry Guide 7 for estimating and
reporting reserves. This release has been reviewed for accuracy by Mr.
J. B. Pennington of SRK and for Solitario by Walter Hunt, Chief
Operating Officer, both of whom are 'qualified persons? as that term is
defined in NI 43-101.

Terms of the Mt. Hamilton LLC Joint Venture

Solitario and Ely Gold formed Mt. Hamilton LLC ('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, with the completion of this Feasibility Study,
Solitario will hold an 80% interest in MH-LLC, and DHI-US. Ely Gold′s
wholly owned US subsidiary, will hold a 20% interest in MH-LLC. Further
Solitario obligations include 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,
and Peru. Solitario has significant business relationships with
Votorantim Metais on its high-grade Bongará zinc project in Peru and
Anglo Platinum on its Pedra Branca platinum-palladium project in Brazil.
Solitario is traded on the NYSE Amex ('XPL') and on the Toronto Stock
Exchange ('SLR'). Additional information about Solitario is available
online at www.solitarioxlr.com

About Ely Gold

Ely Gold is focused on the acquisition and development of gold resources
in North America. Besides its interest in the Mt. Hamilton project, Ely
Gold has entered into a series of transactions to acquire a portfolio of
assets in the Abitibi Gold Camp in Quebec. Ely Gold is traded on the TSX
Venture Exchange ('ELY'). Additional information about Ely Gold is
available online at www.elygoldandminerals.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward Looking Information

This press release contains forward-looking statements within the
meaning of the U.S. Securities Act of 1933 and the U.S. Securities
Exchange Act of 1934, and as defined in the United States Private
Securities Litigation Reform Act of 1995 (and the equivalent under
Canadian securities laws),that are intended to be covered by the
safe harbor created by such sections. Forward-looking statements are
statements that are not historical fact. They are based on the beliefs,
estimates and opinions of the Company's management on the date the
statements are made and address activities, events or developments that
Solitario expects or anticipates will or may occur in the future, and
are based on current expectations and assumptions.Forward-looking
statements involve a number of risks and uncertainties. Consequently,
there can be no assurances that such statements will prove to be
accurate and actual results and future events could differ materially
from those anticipated in such statements. Such forward-looking
statements include, without limitation, statements regarding the
Company′s expectation of the projected timing and outcome of engineering
studies; expectations regarding the receipt of all necessary permits and
approvals to implement the mining plan at Mt. Hamilton; the potential
for confirming, upgrading and expanding oxide gold and silver
mineralized material at Mt. Hamilton; reserve and resource estimates;
operating cost estimates; estimates of gold and silver grades; estimates
of recovery rates; expectations regarding the cash flow generated by the
property; and other statements that are not historical facts.Although
Solitario management believes that its expectations are based on
reasonable assumptions, it can give no assurance that these expectations
will prove correct.Important factors that could cause actual
results to differ materially from those in the forward-looking
statements include, among others, risks relating to risks that
Solitario′s exploration and property advancement efforts will not be
successful; risks relating to fluctuations in the price of gold and
silver; the inherently hazardous nature of mining-related activities;
uncertainties concerning reserve and resource estimates; availability of
outside contractors in connection with Mt. Hamilton and other
activities; uncertainties relating to obtaining approvals and permits
from governmental regulatory authorities; the possibility that
environmental laws and regulations will change over time and become even
more restrictive; and availability and timing of capital for financing
the Company′s exploration and development activities, including
uncertainty of being able to raise capital on favorable terms or at all;
as well as those factors discussed in Solitario′s filings with the U.S.
Securities and Exchange Commission (the 'SEC?) including
Solitario′s latest Annual Report on Form 10-K and its other SEC filings
(and Canadian filings) including, without limitation, its latest
Quarterly Report on Form 10-Q. The Company does not intend to publicly
update any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as may be required
under applicable securities laws.

Solitario

Christopher E. Herald, 303-534-1030

President & CEO

or

Debbie
Mino-Austin, 800-229-6827

Director ? Investor Relations

or

Ely
Gold

Steve Kenwood, 604-488-1104

Director

or

Trey
Wasser, 972-803-3087

President & CEO