Solitario Resources Signs Major Agreement with Newmont Mining on Its Pachuca Real Silver-Gold Project, Mexico.

DENVER -- Solitario Resources Corporation (AMEX:XPL) (TSX:SLR) is pleased to announce that it has signed a definitive Venture Agreement with Newmont de Mexico, S.A. de C.V. ("Newmont"), a wholly owned subsidiary of Newmont Mining Corporation, on Solitario's Pachuca Real silver-gold project in central Mexico. Solitario's 100%-owned Pachuca Real project encompasses approximately 47,215 hectares of mineral rights in and around the famed Pachuca silver-gold mining district, one of the largest silver-gold districts in the world. Historic production from the Pachuca district has totaled approximately 1.4 billion ounces of silver and over 7.0 million ounces of gold. A map of the project area, can be viewed on Solitario's website at http://solitarioresources.com/art/pachucamap.jpg.

Terms of the Venture Agreement

The Venture Agreement calls for a firm work commitment by Newmont of $2.0 million over the next 18 months. Work commitments over the next 4.5 years total $12.0 million.

 Exploration Expenditures and Due Dates     Amount    Aggregate Amount
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18 months from signing - firm commitment   $2,000,000      $2,000,000
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30 months from signing - optional
 commitment                                $2,300,000      $4,300,000
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42 months from signing - optional
 commitment                                $3,500,000      $7,800,000
----------------------------------------------------------------------
54 months from signing - optional
 commitment                                $4,200,000     $12,000,000
----------------------------------------------------------------------

Newmont's initial firm work commitment includes a minimum of 7,500 meters of drilling within the first 24 months. Upon the completion of $12.0 million in expenditures, Newmont will have earned a 51% interest in the project. Newmont will have the right to earn an additional 14% (total 65%) by completing a positive feasibility study for the project. During the feasibility stage, Newmont is required to spend a minimum of $5.0 million annually until such time as the positive feasibility study is completed. Newmont has the right to terminate the agreement at anytime following its firm initial work commitment. The Venture Agreement is subject to Newmont completing its due diligence title review by October 2, 2006.

Upon completion of the feasibility study, Solitario will have the option to self-finance its 35%-participating interest in the project, or to have Newmont fund its portion of construction costs at Libor + 3%. If Solitario elects to have Newmont fund all its venture costs, including its portion of construction costs, then Solitario's participating interest will be 30% and Newmont's interest will be 70%.

Project History

The Pachuca Real land package encompasses parts of the old Pachuca district, but more importantly, covers the most prospective extensions of the district to the north and northwest. Prior to Solitario's acquisition of the mineral rights, the entire land package had been held by the Mexican government from 1947 to 1990, and then sold to a private Mexican company that controlled the claims until recently. During this 58-year period only a limited amount of exploration was conducted. Solitario acquired the majority of its land position in January 2006 and has been conducting surface exploration for the past seven months. This work has identified a number of well mineralized structures and veins distributed over a significant portion of the project area.

Chris Herald, President and CEO of Solitario, stated, "We are very excited about the potential of this land package in one of the most prolific silver-gold districts in the world. It is truly rare to establish such a dominant land position in a district such as this. Project exploration will be greatly accelerated through our Venture Agreement with Newmont. We have worked closely with Newmont in the past and are very pleased about the opportunity to broaden our relationship with Newmont on this important exploration project."

Solitario trades on the American Stock Exchange ("AMEX") under the ticker XPL and on the Toronto Stock Exchange ("TSX") under the symbol SLR. Solitario is a gold, silver, platinum-palladium, and base metal exploration company actively exploring in Brazil, Mexico and Peru. Additional information about Solitario is available online at www.solitarioresources.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 of Solitario'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. This release also contains information about adjacent properties on which Solitario has no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.