PEDRA BRANCA

Solitario Exploration in 2008 reported that six different prospect areas were drilled with five returning favorable results at Pedra Branca; results include 44.4m of 1.32 g/t PGM+Au (Cerio I), 29.6m of 2.17g/t PGM+Au (Curiu), and 19.7m of 1.29 g/t PGM+Au (Cedro IV), among others.

The company sold 50% share ownership of Aurizona Goldfields Limited, which holds the property, together with all rights and obligations to Luna Gold Corp. (“Luna"). On closing, the company received US$0.5 million and 3 million shares of Luna. Under the agreement, Luna will make additional payments of US$1.0 million on the first anniversary of the closing, US$1.5 million on the second anniversary of the closing and US$1.0 million on the first, second and third anniversary of the commencement of commercial production. In the 2006 Annual Report, additional geophysical work consisting of induced polarization surveys and rigorous new reprocessing of previously generated ground magnetic data were conducted in late 2006/early 2007. This work has provided enhanced target definition for drilling to extend mineralization at the previously drilled Esbarro, Cedro, Trapia and Santa Amaro prospects, and provided exciting new information for the Galante, Conceição and South Synform prospects that have never been drill tested. Our current plans call for drilling to begin in late-April. The 2007 program will consist of 3,500 meters of core drilling in at least seven different areas. The Esbarro prospect, with 105 holes, has the largest database of information of the drilled prospects. Drilling was conducted on approximately 50-meter spaced centers. The Curiu prospect is the second most detailed prospect drilled with 21 holes completed to date. Drilling was conducted on approximately 25-meter spaced centers. We have completed 9 drill holes at Santa Amaro, 8 at the Trapia I, and 19 on the Cedro prospect. Drill spacing on these three prospects range from 50 to 200 meters.

Has intersected significant widths and grades of platinum and palladium mineralization on three emerging PGM prospects, the San Amaro, Trapia and Cedro of the Pedra Blanca project in Brazil. Highlights of this drilling campaign included SA-08 and TU-06 that intersected 82.7 m grading 1.45 g/t PGM+gold and 56.0 m grading 1.75 g/t PGM+gold. Eleven prospect areas were drill tested and significant mineralization was intercepted in five of the holes.