Solitario Reports Best Hole Ever Drilled on Its Bongará High-Grade Zinc Project, Peru

Solitario Exploration & Royalty Corp. (NYSE MKT: XPL) (TSX: SLR)
announced continued outstanding drilling results on its high-grade
Bongará zinc project in Peru. Included in these results is the best hole
ever drilled on the project, underground core hole V-297, that
intersected 56.6 meters grading 22.69% zinc, 1.15% lead and 31.23 gpt
silver. In addition, drill hole V-298 intersected 7.4 meters grading
40.05% zinc, 3.68% lead and 58.99 gpt silver, representing the highest
grade ever intersected at Bongará.

All drill holes reported in this news release were drilled from the San
Jorge underground exploration tunnel completed in late-2011, a part of
the overall 2012 Florida Canyon drilling program managed and entirely
funded by Solitario's joint venture partner Votorantim Metais
('Votorantim?). The 13 best intercepts in this round of underground
drilling are presented below.

The San Jorge underground drilling program began in the fourth quarter
of 2011 and was completed in the second quarter of 2012. During this
period 70 core holes totaling 12,342 meters were completed from eight
different underground drill stations. Results from 39 of the final 48
core holes are presented in the table at the end of this release. None
of the results contained in this news release were previously reported.
The San Jorge mineralized area, and the Florida Canyon deposit in
general, remains open to expansion in all directions.

One of the most important advancements of this drilling program is the
discovery that zinc grades at the San Jorge area increase to the south.
In fact, the southernmost area of the underground drilling program
(Drill Station #1) contains some of the highest zinc grades ever
encountered on the property. Based on these results, Votorantim has
proposed extending the San Jorge exploration tunnel a further 300 meters
to the south where high-grade mineralization remains wide-open.

Votorantim continues to aggressively advance the project on a number of
fronts, including prefeasibility-level resource definition drilling and
the evaluation of the hydrologic and geotechnical characteristics of the
Florida Canyon mineralized area. Recently another round of metallurgical
testing at Pilot Plant scale was completed confirming excellent zinc
recoveries in excess of 90%.

Chris Herald, President and CEO of Solitario, commented, 'These results
are exceptional and amply demonstrate that the Bongará project is
emerging as one of the best undeveloped zinc projects in the world. A
significant surface drilling program in the Karen-Milagros area north of
San Jorge was also recently completed and final drilling results are
expected within the next several weeks. Votorantim is now well advanced
in its 2013 planning and we hope to announce the most aggressive
exploration and development program in the history of the project within
the next couple of months.'

The Bongará project hosts the high-grade Florida Canyon zinc deposit
where high-grade zinc mineralization has been intersected over a four
square kilometer area. Underground drill stations at San Jorge are
situated about 40 meters apart and are designed to drill test in detail
approximately 350 meters of strike length of the San Jorge
mineralization, situated in the southwestern part of the Florida Canyon
deposit. Anywhere from 4 to 15 core holes are fan-drilled from each
drill station. A drill hole map can be accessed at http://www.solitarioxr.com/art/Bongara082312.jpg.
Additional project information is found at http://www.solitarioxr.com/bongara.html.

Drill hole information contained within this release is reported under a
quality control program reviewed by Mr. Walt Hunt, COO for Solitario
Exploration & Royalty Corp., who is a qualified person as defined by
National Instrument 43-101. Samples are derived from 50% splits of HQ
and NQ (2.5 and 1.9 inch) diameter core. Samples are then shipped via
secured third-party land and air transportation companies and analyzed
by ALS Chemex Inc., North Vancouver, Canada, an ISO9002 registered
company.

Bongará Joint Venture Agreement with Votorantim
Metais

Votorantim Metais can earn up to a 70% interest in the project by
committing to place the project into production based upon a positive
feasibility study. After earning 70%, Votorantim Metais has further
agreed to finance Solitario's 30% participating interest for
construction. Solitario will repay the loan facility through 50% of its
net cash flow distributions.

About Votorantim Metais

Votorantim Metais belongs to a privately held Brazilian business
conglomerate that is a leader in every market segment in which it
operates, including cement, pulp and paper, metals, chemicals, orange
juice, and finance. The metals business division accounted for 37% of
revenues from production of zinc, nickel, steel (Siderugia) and
aluminum. Votorantim Metais is the world's fifth largest primary zinc
producer with three operating zinc smelters and two operating zinc
mines. It owns the Cajamarquilla zinc smelter and is the majority
shareholder of Milpo, both located in Peru. Votorantim Metais also has
operations in the United States and China.

About Solitario

Solitario recently completed a Feasibility Study on its 80%-owned Mt.
Hamilton Gold project in eastern Nevada. Solitario is a gold, silver,
platinum-palladium, and base metal exploration and royalty company
actively exploring in the United States, Brazil, Mexico, and Peru.
Besides Votorantim, Solitario has a significant business relationship
with Anglo Platinum, with Anglo funding the continued exploration of the
Pedra Branca PGM project in Brazil. Solitario is traded on the NYSE MKT
('XPL') and on the Toronto Stock Exchange ('SLR'). Additional
information about Solitario is available online at www.solitarioxr.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, future plans and
objectives of Solitario′s joint venture partner Votorantim Metais 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 risks such 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, the United
States Securities and Exchange Commission and other regulatory
authorities.