Solitario Selling Mt. Hamilton Project To Waterton

DENVER, CO - Solitario Exploration & Royalty Corp. and Ely Gold & Minerals Inc. and together with Solitario, are pleased to announce that they have closed the previously announced agreement to sell their combined interests in the Mt. Hamilton gold project to Waterton Nevada Splitter, LLC, a wholly-owned subsidiary of Waterton Precious Metals Fund II Cayman, LP for total cash proceeds of US$30 million. The Transaction was structured as the sale of the Sellers╒ membership interests in Mt. Hamilton LLC (MH-LLC), a limited liability company that held 100% of the Mt. Hamilton assets. Shareholders of Solitario and Ely Gold recently approved the Transaction.

Solitario received gross proceeds of $24 million for its 80% interest in MH-LLC, and DHI Minerals (U.S.) Ltd., Ely Gold's wholly-owned U.S. subsidiary, received gross proceeds of $6 million for its 20% interest in MH-LLC. Concurrently with the closing of the Transaction, Solitario paid its outstanding US$5 million corporate credit facility with RMB Australia Holdings Limited, plus approximately $7,000 in accrued interest and fees.

Chris Herald, President and CEO of Solitario, stated, We are pleased to have successfully closed our transaction with Waterton. With Waterton as the new owner of Mt. Hamilton, we believe the project can more rapidly advance towards construction and subsequent production.

Trey Wasser, President and CEO of Ely Gold, stated: This sale will provide Ely with the capital to focus on advancing our 100% owned Green Springs project, located just seven miles south of Mt. Hamilton. Green Springs is fully permitted for exploration and we expect to begin a drill program this fall.