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Solitario Signs Letter of Intent with Hochschild Mining on Its Pachuca Norte Silver-Gold Project, Mexico

  Solitario Signs Letter of Intent with Hochschild Mining on Its Pachuca Norte
  Silver-Gold Project, Mexico

Business Wire

DENVER -- March 7, 2013

Solitario Exploration & Royalty Corp. (“Solitario;” NYSE MKT: XPL;  TSX: SLR)
is pleased to announce that it has signed a binding Letter of Intent (“LOI”)
with Minera Hochschild México S.A. de C.V., a 100%-owned subsidiary of
Hochschild Mining plc (LSE: HOCM.L / HOC LN) ("Hochschild"), on Solitario's
Pachuca Norte silver-gold project in central Mexico. Solitario's 100%-owned
Pachuca Norte project (formerly called “Pachuca Real”), encompasses
approximately 19,000 hectares of mineral rights in and around the famed
Pachuca silver-gold mining district. Historic production from the Pachuca
district totals approximately 1.4 billion ounces of silver and over 7.0
million ounces of gold, making it one of the largest silver-gold districts in
the world. A map of the project area can be viewed on Solitario's website at
http://www.solitarioxr.com/art/PachucaNorte.pdf.

Terms of the Venture Agreement

Per the terms of the binding LOI, Hochschild can earn a 51% interest in the
project by spending a total $10.0 million on exploration over a five-year
period. The initial 12-month work program of $1.5 million is a firm
commitment. The following table presents the entire five-year work commitment
schedule:

                                                    
Exploration Expenditures and Due      Amount          Aggregate Amount
Dates
12 months from signing - firm         $ 1,500,000     $1,500,000
commitment
18 months from signing - optional     $ 500,000       $2,000,000
commitment
36 months from signing - optional     $ 3,000,000     $5,000,000
commitment
60 months from signing - optional     $ 5,000,000     $10,000,000
commitment

Hochschild will have the right to earn an additional 19% (total 70%) by
completing a positive feasibility study for the project. Both parties are
currently working on drafting and signing a definitive agreement. Upon signing
a definitive agreement, expected in approximately 30 days, Hochschild will
become project manager, and will have the right to terminate the agreement at
any time following its firm initial work commitment.

Chris Herald, President and CEO of Solitario, stated, "With Hochschild’s long
history of exploring for, developing and mining vein deposits, and current
successful management of four underground vein mines, we believe they are the
perfect partner to advance our high-potential Pachuca Norte silver-gold
project in Mexico. Past exploration by our former partners has laid
substantial groundwork for Hochschild to move rapidly forward offsetting
previously drilled holes that are strongly mineralized as shown in the drill
hole table provided below. With this latest agreement with Hochschild,
Solitario now has a portfolio of three significant joint venture projects in
which our partners are spending well in excess of $12 million on exploration
and development work for 2013.”

Project History

The Pachuca Norte land package encompasses parts of the old Pachuca district,
but more importantly, covers the most prospective extensions of the district
to the north, northwest, and east. 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.

Shortly after Solitario acquired the majority of its land position in early
2006, it formed a joint venture with Newmont Mining from 2006-2008 and then
Buenaventura from 2010-2011. Newmont identified 38 high-quality drill targets
consisting of high-grade silver-gold veins that are distributed over a
geographic area measuring 20 kilometers long and ten kilometers wide. Newmont
drilled 19 holes totaling 7,873 meters. Buenaventura expanded upon Newmont’s
work and drilled 38 holes totaling 13,489 meters. Hochschild has indicated
that its initial 12-month work program will be focused upon testing a number
of these already well-defined drill targets.

The 15 best drill hole intercepts from 10 separate prospect areas are
presented in the table below.

PACHUCA DRILLING HIGHLIGHTS
Vein             Drill        From      To        Width**    g/t      g/t       Ag
                    Hole*                                                   Gold        Silver       Eq.***
San Juan         Pac-08       266.4     267.3     0.90       2.03     754.0     856
Gallo               (N)
El Escribano     Pac-09       245.0     245.5     0.50       0.75     468.0     506
                    (N)
Investagadora    Pac-11       314.4     315.3     0.85       1.28     173.0     237
                    (N)
San Juan         Pac-13       156.9     158.9     1.95       0.63     144.7     176
Gallo               (N)
El Escribano     Pac-18       274.7     276.1     1.40       1.00     458.4     508
                    (N)
Investigadora    Pan-11-12    217.75    218.60    0.85       1.95     271.47    369
                    (B)
Investigadora    Pan-11-18    236.25    237.00    0.75       0.97     317.00    365
                    (B)
San Marcial      Pan-11-19    225.15    225.60    0.45       0.75     657.00    695
                    (B)
La Perla         Pan-11-22    344.90    345.90    1.00       6.30     53.48     368
                    (B)
Santa Rosa       Pan-11-25    252.60    255.00    2.40       1.43     158.27    230
                    (B)
Santa Rosa       Pan-11-27    144.90    145.50    0.60       5.60     837.00    1,117
                    (B)
Sumbimblia       Pan-11-28    46.30     47.35     1.05       16.40    238.86    1,058
                    (B)
Escribano        Pan-11-29    444.45    445.05    0.60       2.60     834.00    964
Norte               (B)
Escondida        Pan-11-31    250.30    251.15    0.85       8.40     283.00    703
                    (B)
Escribano Sur    Pan-11-34    238.85    240.40    1.55       0.90     165.00    210
                    (B)

* (N) = Newmont drilled core hole; (B) = Buenaventura drilled core hole
** true widths of veins have not been estimated and could be substantially
less than reported
***Ag Eq. = Silver Equivalent at 1.0 g/gold = 50 g/silver


The 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.

About Hochschild Mining plc

Hochschild Mining plc is a leading precious metals company listed on the
London Stock Exchange (HOC.L) with a primary focus on the exploration, mining,
processing and sale of silver and gold. Hochschild has almost fifty years'
experience in the mining of precious metal epithermal vein deposits and
currently operates four underground epithermal vein mines, three located in
southern Peru and one in southern Argentina. Hochschild also has numerous
long-term projects throughout the Americas.

About Solitario

Solitario is a gold, silver, platinum-palladium, and base metal exploration
and royalty company actively exploring in Brazil, Mexico, Peru and Nevada.
Besides Hochschild, Solitario has significant business relationships with
Votorantim Metais (world’s fifth largest zinc producer) and Anglo Platinum
(world’s largest platinum producer). Solitario is currently focused on
permitting and developing the Mt. Hamilton gold-silver project in Nevada.
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, 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.

Contact:

Solitario Exploration & Royalty Corp.
Debbie W. Mino, (800) 229-6827
Director – Investor Relations
or
Christopher E. Herald, (303) 534-1030
President & CEO
 
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