Solitario Reports Continued Drilling Success 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 are core holes
V-287, that intersected 7.9 meters grading 24.6% zinc, 2.7% lead and
30.5 gpt silver and hole V-351 that intersected 13.0 meters grading
12.9% zinc, 4.3% lead and 32.4 gpt silver.

All drill holes reported in this news release were drilled from the
surface in the Karen Milagros mineralized area ('KM-Zone?), except for
three surface core holes that tested the southwestern extent of the San
Jorge zone. The drilling program was managed and entirely funded by
Solitario's joint venture partner Votorantim Metais ('Votorantim?).
Better intercepts in this round of surface drilling are presented below.

Drilling Highlights:KM-Zone

* True thickness has not been estimated for each individual intercept.

Surface drilling began late in the fourth quarter of 2011 and was
finished in the third quarter of 2012. During this period 50 core holes
were completed in the KM-Zone and three holes in the San Jorge Zone.
Remarkably, 46 of the 53 drill holes intersected mineralization grading
in excess of 2.0% zinc + lead over at least two meters, or equivalent.
Important mineralized intercepts are reported in a table appended to
this news release. None of the results contained in this news release
were previously reported.

Fifteen-hundred meters south of the KM-Zone, three surface core holes
successfully tested the southwestern extension of the San Jorge Zone.
These results are provided below.

San Jorge Zone Drilling Results

* True thickness has not been estimated

In addition to these three surface holes, 70 underground core holes were
recently completed in the San Jorge zone. The final results, which
included a number of thick, high-grade intercepts, were reported in a
release dated August 23, 2012. Both the KM and San Jorge mineralized
zones are contained within the Florida Canyon mineralized system which
remains open to expansion in all directions. Objectives of a planned
2013 surface drilling program will be to expand the KM-Zone to the
northeast and the San Jorge Zone to the south, to demonstrate the
physical continuity between the KM and San Jorge zones, and to test new
district targets outside of previously drilled areas.

Chris Herald, President and CEO of Solitario, commented, 'Once again,
these most recent drilling results are exceptional and further extend
and infill mineralization in the KM-Zone. As a result of these and other
equally strong drilling results in the KM-Zone, Votorantim is planning
to drive a 700-meter exploration tunnel in 2013 into the heart of the
Karen Milagros zone to better define the geometry of mineralization, as
well as extend the San Jorge tunnel a further 300 meters south to
further test open high-grade zinc mineralization. As positive as 2012
drilling and development activities have been for the Bongará project,
we believe that Votorantim′s 2013 surface and underground plans have an
even higher potential to create value.?

A drill hole map can be accessed at http://www.solitarioxr.com/art/Bongara100112.pdf.

Additional project information is found at http://www.solitarioxr.com/bongara.html.

Drill hole information contained within this release is reported under
Votorantim′s 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 29% of
revenues from production of zinc, nickel, steel 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 (February 22, 2012) and
reported a significant resource increase (September 10, 2012) 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.

Solitario Exploration & Royalty Corp.

Debbie Mino-Austin,
800-229-6827

Director ? Investor Relations

or

Christopher
E. Herald, 303-534-1030

President & CEO