Mr. Chris Herald of Solitario reports

SOLITARIO ANNOUNCES UPDATED MT. HAMILTON FEASIBILITY STUDY

Solitario Exploration & Royalty Corp. and Ely Gold & Minerals have released the results of an updated Mt. Hamilton feasibility study that focused on optimizing gold production during the early mine life to enhance project economics (all amounts are in U.S. dollars). Recent drilling, engineering and detailed mine planning have facilitated significantly higher annual gold production for the first four years, higher reserve grade and increased resources for the project compared with the original Mt. Hamilton feasibility study completed in February, 2012.

Mt. Hamilton 2014 feasibility study base case (gold: $1,300; silver: $20):

Production rate/mine life:  10,000 tons ore per day (350 days/year)/seven years

Average gold recovery:  76.2 per cent (70 per cent of recoverable gold in first 30 days of processing)

Average silver recovery:  39 per cent

Life-of-mine stripping ratio:  2.47 to 1.0 (waste to ore (includes stockpiled ore))

Initial capital cost:  $91.7-million (includes $9.0-million contingency)

Sustaining capital:  $29.8-million (includes $2.4-million contingency and $10.1-million end-of-mine closure costs)

Working capital:  8.4-million

Underlying net-smelter-return royalty:  3.4 per cent

Cash costs per gold-equivalent ounce recovered:  $558

Average annual AuEq production:  73,000 ounces (during 6.1-year active mining period)

Average annual gold production:  68,600 ounces

Average annual silver production:  279,400 ounces

Gold-equivalent (AuEq) was based on recovered payable metal with an effective silver-to-gold ratio of 65 to 1.

Additional highlights:

• Average annual production for the first four years is approximately 81,000 ounces AuEq compared with approximately 51,600 ounces forecast in the 2012 FS, an increase of 57 per cent;
• Life-of-mine total cash costs of $558 per ounce AuEq (includes all royalties and Nevada net profits tax and does not use silver as a credit). Low operating costs are mainly due to the high reserve gold grade, strong gold recoveries and short haulage distances;
• All-in sustaining costs of $833 per AuEq ounce;
• Proven and probable reserves contain 545,400 ounces of gold and 4,459,600 ounces of silver;
• Outstanding potential to upgrade a significant portion of indicated and inferred resources that are currently constrained by the capacity of the permitted heap-leach pad;
• At $1,300/ounce gold and $20.00 silver prices, the internal rate of return is 26 per cent (after tax) and 35.4 per cent (pretax) with a 2.9-year payback of the projected $91.7-million initial capital expenditures.

High reserve grade is the primary driver for Mt. Hamilton's low total cash cost of $558 per ounce of gold-equivalent produced. The low cash cost has been achieved in the 2014 FS using an improved mine plan offset by more conservative assumptions for metal prices, costs and operating inputs compared with the 2012 FS.

The Mt. Hamilton gold project will be an open-pit mining operation with heap-leach processing. Mining will occur in both the Centennial and Seligman ore deposits. Processing is straightforward with two-stage crushing to minus three-fourths-inch, no agglomeration and relatively rapid initial gold leach rates, followed by conventional ADR (adsorption-desorption-recovery) metal extraction. The project also incorporates several innovative design concepts including the use of a vertical ore pass and underground conveying system which minimize environmental impacts while providing operational efficiencies and safer operating conditions.

Chris Herald, president and chief executive officer of Solitario, stated: "We are very pleased with the outcome of the 2014 FS. Cash flow in the initial years is substantially increased, resulting in enhanced project economics. Mt. Hamilton represents one of the highest-grade, lowest-cost, open-pit heap-leach gold projects in Nevada. The results of the updated 2014 FS put the project in a stronger position to complete project financing. We have been very encouraged with our discussions to date with various financial institutions, and we are taking a measured approach to assure the best possible outcome.

"Equally important to the increased annual production rate and low cash costs are the additional gold ounces that have been defined in the $1,300 resource pit. Reserves were capped at 22.5 million tons, as that is the maximum tonnage capacity of our currently permitted heap-leach site situated on our private landholdings. Approximately 182,000 ounces of indicated and 119,000 inferred gold ounces in the $1,300 resource pit are not included in the current reserves. With a successful drilling program and the permitting of an expanded heap-leach facility, there is an opportunity to upgrade a portion of these gold ounces from indicated and inferred resources to proven and probable reserves, improving the project economics and extending cash flow over a longer mine life."

Mineral reserves were conservatively estimated from a pit design based on $840/ounce gold and $13/ounce silver prices. Multiple pit scenarios were evaluated under a range of gold prices to determine the most favourable pit design for both optimal resource extraction and cash flow.

                                                                                               
                     MINERAL RESERVE STATEMENT, MT. HAMILTON GOLD PROJECT

Reserve category        Tons     Gold grade    Silver grade    Contained metal (000s of ounces)
                        (000)  (oz/t)  (g/t)  (oz/t)   (g/t)        Gold                Silver

Proven                 1,240   0.029   1.01    0.198   6.80         36.6                 245.8
Probable              21,260   0.024   0.82    0.198   6.80        508.8               4.213.8
Proven and probable   22,500   0.024   0.83    0.198   6.80        545.4               4.459.6

Reserves are reported using a cu-toff grade (COG) of 0.006 ounce per ton Au.
The COG was based on a gold price of $1,300/ounce and a silver price of $20/ounce.
The COG was calculated at an average recovery of 76 per cent for Au and 39 per cent for Ag.
Average recovery for gold was calculated from a recovered grade item modelled for each model
block based on cyanide soluble and total gold grades.
Cut-off for each block was determined using this recovered grade item.
Metal grades reported are diluted.
Some numbers may not add due to rounding.

"The environmental assessment process was completed in September and the Mt. Hamilton mine is now moving to the development phase. The increase in the measured and indicated resources indicate that the Mt. Hamilton mine life could easily exceed 10 years and is not dependent on higher gold prices. In addition, the Wheeler Ridge area is now fully permitted for exploration and is a significant untested area," stated Trey Wasser, Ely Gold's president and chief executive officer. "All of our previous drill programs have been very successful in upgrading existing and adding new resources. Once constructed, the Mt. Hamilton mine should be producing gold for many years to come."

                                                                                       
                  MINERAL RESOURCE STATEMENT, MT. HAMILTON GOLD PROJECT

Resource category         Tons  Au grade  Ag grade        AuEq grade   Contained ounces (000)
                          (000)    (oz/t)    (oz/t)   (oz/t)    (g/t)   Au        Ag    AuEq

Measured                 1,427     0.030     0.209    0.033     1.13    42       299      47
Indicated               32,283     0.021     0.194    0.024     0.83   685     6,271     790
Measured and indicated  33,710     0.022     0.195    0.025     0.84   727     6,569     828
Inferred                 6,721     0.018     0.171    0.020     0.67   119     1,153     136

Mineral resources are not mineral reserves and do not have demonstrated economic viability.
There is no certainty that 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; pit
optimization was based on assumed gold and silver prices of $1,300/ounce and $19.60/ounce,
respectively, block-by-block modelled recovery averaging 76.3 per cent for
Au and 39 per cent for Ag, an ore mining cost of $2.06/tonne for the Seligman deposit, an
ore mining cost of $1.64/t for the Centennial deposit and an ore processing cost of
$4.95/t; west pit slopes of 45 degrees, east pit slopes of 50 degrees.
Resources are reported using a 0.006 ounce per ton contained gold cut-off grade.
AuEq was calculated using a silver-to-gold ratio of 65 to 1.
Numbers in the table have been rounded to reflect the accuracy of the estimate and may not
sum due to rounding.

                                                                        
                             PROJECT ECONOMICS                            
                                                                        
Item                              Pretax                After tax       
                                                
Gold (US$/oz)          $ 1,200    $1,300  $1,400   $1,200  $1,300  $1,400
Silver (US$/oz)          18.50     20.00   21.50    18.50   20.00   21.50
Cash flow (US$M)         141.9     184.8   227.6     89.4   115.9   142.3
NPV at 8% (US$M)          76.6     107.0   137.3     41.8    60.8    79.9
NPV at 5% (US$M)          97.6     131.8   166.2     57.0    78.5    99.9
IRR                       28.4      34.5    42.1     20.6    26.0    31.1
Payback (years)            3.0       2.7     2.5      3.1     2.9     2.7

The 2014 feasibility study is available on both Solitario's and Ely Gold's websites and will be filed today on SEDAR and furnished on EDGAR under the title "NI 43-101 Technical Report, Feasibility Study, Mt. Hamilton Gold and Silver Project, Centennial Deposit and Seligman Deposit, White Pine County, Nevada." The 2014 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, Nov. 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 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 National Instrument 43-101.

We seek Safe Harbor.