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<SEC-DOCUMENT>0000917225-03-000002.txt : 20040303
<SEC-HEADER>0000917225-03-000002.hdr.sgml : 20040303
<ACCEPTANCE-DATETIME>20031212164810
ACCESSION NUMBER:		0000917225-03-000002
CONFORMED SUBMISSION TYPE:	10-12G
PUBLIC DOCUMENT COUNT:		23
FILED AS OF DATE:		20031212
DATE AS OF CHANGE:		20040303

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOLITARIO RESOURCES CORP
		CENTRAL INDEX KEY:			0000917225
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				841285791
		STATE OF INCORPORATION:			CO
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-12G
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-50602
		FILM NUMBER:		031052301

	BUSINESS ADDRESS:	
		STREET 1:		1675 BROADWAY
		STREET 2:		SUITE 2400
		CITY:			DENVER
		STATE:			CO
		ZIP:			80202
		BUSINESS PHONE:		3035341030

	MAIL ADDRESS:	
		STREET 1:		1675 BROADWAY
		STREET 2:		SUITE 2400
		CITY:			DENVER
		STATE:			CO
		ZIP:			80202
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-12G
<SEQUENCE>1
<FILENAME>form10.htm
<TEXT>
<HTML>
<HEAD>
<META NAME="Generator" CONTENT="Microsoft Word 10.0">
<TITLE>UNITED STATES</TITLE>
<META NAME="Template" CONTENT="C:\Documents and Settings\paula\Application Data\Microsoft\Templates\EDGARizr.dot">
</HEAD>
<BODY>

<FONT SIZE=2><P ALIGN="CENTER">UNITED STATES</P>
<P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</P>
<P ALIGN="CENTER">Washington, D.C. 20549</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">___________________</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">FORM 10</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">GENERAL FORM FOR REGISTRATION OF SECURITIES</P>
<P ALIGN="CENTER">Pursuant to Section 12(b) or 12(g) of the Securities Exchange Act of 1934</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">____________________</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Solitario Resources Corporation</P>
<P ALIGN="CENTER">(Exact name of registrant as specified in its charter)</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">____________________</P>
<P ALIGN="CENTER"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE Border=0 CELLSPACING=0 CELLPADDING=7 WIDTH=370>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Colorado</FONT></TD>
<TD WIDTH="44%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">84-1285791</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">(State or other jurisdiction of incorporation or organization)</FONT></TD>
<TD WIDTH="44%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">(I.R.S. Employer Identification No.)</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="LEFT"></P>
<P ALIGN="CENTER">4251 Kipling Street, Suite 390</P>
<P ALIGN="CENTER">Wheat Ridge, Colorado 80033</P>
<P ALIGN="CENTER">(303) 534-1030</P>
<P ALIGN="CENTER">(Address, including zip code, and telephone number, including area code, of principal executive offices)</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">______________________</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Securities to be registered pursuant to Section 12(b) of the Act:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#9;None</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Securities to be registered pursuant to Section 12(g) of the Act:</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Common Stock, $0.01 par value</P>
<P ALIGN="CENTER">(Title of Class)</P>
<P ALIGN="LEFT"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INFORMATION INCLUDED IN INFORMATION STATEMENT AND INCORPORATED IN FORM 10 BY REFERENCE</P>
<P ALIGN="LEFT"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE Border=0 CELLSPACING=0 CELLPADDING=7 WIDTH=663>
<TR><TD WIDTH="6%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Item No.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Caption</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Location in Information Statement</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">1.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Business</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&quot;"Summary&quot;"; &quot;"Summary Financial Information&quot;";  &quot;"Management's Discussion and Analysis of Financial Condition and Results of Operations&quot;"; and &quot;"Business&quot;"</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">2.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Financial Information</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&quot;"Summary&quot;"; &quot;"Selected Historical Consolidated Financial and Other Data&quot;"; and &quot;"Management's Discussion and Analysis of Financial Condition and Results of Operations&quot;"</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">3.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Properties</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&quot;"Business&quot;" </FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">4.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Security Ownership of Certain Beneficial Owners and Management</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&quot;"Principal Stockholders&quot;"</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">5.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Directors and Executive Officers</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&quot;"Management of Solitario Resources Corporation&quot;"</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">6.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Executive Compensation</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&quot;"Management of Solitario Resources Corporation&quot;"</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">7.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Certain Relationships and Related Transactions</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&quot;"Management's Discussion and Analysis of Financial Condition and Results of Operations  Related Party Transactions&quot;"</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">8.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Legal Proceedings</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&quot;"Business  Legal Proceedings&quot;"</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">9.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Market Price of and Dividends on the Registrant's Common Equity and Related Stockholder Matters</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&quot;"Market for our Common Stock&quot;"; &quot;"Dividend Policy&quot;"; and &quot;"Principal Stockholders&quot;"</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Recent Sales of Unregistered Securities</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Not included see Part II below</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">11.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Description of Registrant's Securities to be Registered</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&quot;"Description of Capital Stock&quot;"</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">12.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Indemnification of Directors and Officers</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&quot;"Management of Solitario Resources Corporation  Indemnification of Directors&quot;"</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">13.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Financial Statements and Supplementary Data</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&quot;"Summary&quot;"; &quot;"Selected Historical Consolidated Financial and Other Data&quot;"; and &quot;"Consolidated Financial Statements of Solitario Resources Corporation&quot;"</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">14.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Not included  see Part II below</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">15.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Financial Statements and Exhibits</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&quot;"Index to Solitario Resource Corporation's Consolidated Financial Statements&quot;" and see Part II below</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INFORMATION NOT INCLUDED IN INFORMATION STATEMENT</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">Item 10.&#9;   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recent Sales of Unregistered Securities</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">In January, April, June and September of 2001, we issued a total of 62,487 shares of our common stock, as payment for and to maintain certain property interests valued by us at $38,742, to a property owner located outside of the United States pursuant to Regulation S.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">On November 4, 2003 we sold 1,500,000 shares of our common stock for Cdn$1,800,000 to certain Canadian based funds managed by Sprott Securities of Toronto, Ontario, Canada pursuant to Regulation S.  A finder's fee of approximately Cdn$50,000 was paid to the individual who introduced us to Sprott Securities.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Item 14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">None</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">Item 15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;     Financial Statements and Exhibits</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>

<P ALIGN="LEFT">(b) Exhibits:</P>
<P ALIGN="LEFT"></P></DIR>
</DIR>
</FONT>
<TABLE Border=0 CELLSPACING=0 CELLPADDING=7 WIDTH=628>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Exhibit Number</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Description</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">3.1</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Amended and Restated Certificate of Incorporation of Solitario Resources Corporation</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">3.2</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Amended and Restated By-laws of Solitario Resources Corporation</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">4.1</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Form of Common Stock Certificate of Solitario Resources Corporation</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.1</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Voting Agreement dated April 15, 2002 between Solitario Resources Corporation, Zoloto Investors, LP and Crown Resources Corporation</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.2</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Solitario Resources Corporation 1994 Stock Option Plan</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.3</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Management and Technical Services Agreement between Crown Resources Corp. of Colorado and Solitario Resources Corporation dated January1, 1994</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.4</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">First Amendment to the Management and Technical Services Agreement between Crown Resources Corp. of Colorado and Solitario Resources Corporation dated March 25, 1999</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.5</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Second Amendment to the Management and Technical Services Agreement between Crown Resources Corp. of Colorado and Solitario Resources Corporation dated November 16, 2000</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.6</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Third Amendment to the Management and Technical Services Agreement between Crown Resources Corp. of Colorado and Solitario Resources Corporation dated July 1, 2002</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.7</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">First Amendment to the Solitario Resources Corporation 1994 Stock Option Plan dated December 15, 1995 increasing the number of shares available for grant under the plan from 1,100,000 to 1,170,000 </FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.8</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Second  Amendment to the Solitario Resources Corporation 1994 Stock Option Plan dated December 11, 1996 increasing the number of shares available for grant under the plan from 1,170,000 to 1,386,000.</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.9</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Third  Amendment to the Solitario Resources Corporation 1994 Stock Option Plan dated April 16, 1997 increasing the number of shares available for grant under the plan from 1,386,000 to 1,536,000</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.10</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Fourth Amendment to the Solitario Resources Corporation 1994 Stock Option Plan dated June 4, 1999 increasing the number of shares available for grant under the plan from 1,536,000 to 1,936,000</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.11</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Fifth Amendment to the Solitario Resources Corporation 1994 Stock Option Plan dated June 15, 2000 increasing the number of shares available for grant under the plan from 1,936,000 to 2,336,000</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.12</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Sixth Amendment to the Solitario Resources Corporation 1994 Stock Option Plan dated June 15, 2000 increasing the number of shares available for grant under the plan from 2,336,000 to 3,136,000</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.13</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Seventh Amendment to the Solitario Resources Corporation 1994 Stock Option Plan dated June 26, 2002 increasing the number of shares available for grant under the plan from 3,136,000 to 3,736,000</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.14</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Termination and Royalty Agreement between Altoro Mineracao, Ltd,, Brazil, a wholly-owned subsidiary of ours, and Unamgem mineracao E Metalurgia S.A., a Brazilian subsidiary of Eldorado Gold Corporation dated September 30, 2003, with respect to certain concessions to our Pedra Branca Project in Ceara State, Brazil  Complete Portuguese text of the agreement with an English translation summary</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.15</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Letter Agreement between Bear Creek Mining Company of Tuscon, AZ and Minera Solitario Peru S.A.C. ,a wholly-owned subsidiary  of ours dated July 31, 2003, with respect to our La Pampa Gold Project in Peru</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.16</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Letter Agreement between Anglo American Platinum Corporation and us dated January 28, 2003, with respect to our Pedra Branca Project in Ceara State, Brazil </FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10.17</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Option to Purchase Mineral Concessions between Compania Minera Andes Sur, a wholly-owned subsidiary of ours and certain land owners dated July 31, 2003, with respect to the Triunfo poly-metalic Project in Bolivia.  English translation summary of the original Spanish language Option Agreement</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">21.1</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Subsidiaries of Solitario Resources Corporation</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">99.1</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Solitario Resources Corporation Information Statement dated December *, 2003</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="LEFT"></P>
<P ALIGN="CENTER">SIGNATURES</P>
<P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY">Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this Form 10 registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Solitario Resources Corporation</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">By:&nbsp;&nbsp;&nbsp;   /s/ Christopher E. Herald</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Name:&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Christopher E. Herald</P>
<P ALIGN="JUSTIFY">Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;President and Chief Executive Officer</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Dated:  </P></FONT></BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21.1
<SEQUENCE>2
<FILENAME>exh211.htm
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<TITLE>SUBSIDIARIES OF SOLITARIO RESOURCES CORPORATION</TITLE>
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<U><P ALIGN="RIGHT">Exhibit 21.1</P>
</U><B><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SUBSIDIARIES OF SOLITARIO RESOURCES CORPORATION</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Solitario's corporate structure is as follows [jurisdiction of incorporation]  ownership percentage.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="JUSTIFY">Solitario Resources Corporation [Colorado]</P><DIR>

</B><P ALIGN="JUSTIFY"> Altoro Gold Corp. [British Columbia, Canada] 100 percent</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Altoro Gold (BVI) Corp. [British Virgin Islands]  100 percent</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minera Altoro (BVI) Ltd. [British Virgin Islands] 100 percent</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minera Andes (BVI) Corp. [British Virgin Islands] 100 percent</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compania Minera Andes del Sur S.A. [Bolivia] 100 percent</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minera Altoro Brazil (BVI) Corp. [British Virgin Islands]  100 percent</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Altoro Mineracao, Ltda. [Brazil]  100 percent</P>
<P ALIGN="JUSTIFY"> Minera Solitario Peru, S.A. [Peru]. 100 percent</P>
<P ALIGN="JUSTIFY"> Minera Bongara, S.A. [Peru]  100 percent</P>
<P ALIGN="JUSTIFY"> Minera Soloco, S.A. [Peru]. 100 percent</P></DIR>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.12
<SEQUENCE>3
<FILENAME>exh1012.htm
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<TITLE>SOLITARIO RESOURCES CORPORATION</TITLE>
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<FONT FACE="CG Times"><P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">1994 STOCK OPTION PLAN</P>
</FONT><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SIXTH AMENDMENT</P>
<P ALIGN="CENTER"></P>
<P ALIGN="LEFT">&nbsp;</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">Pursuant to a consent resolution unanimously passed by the Board of Directors on March 2, 2001, and subsequently approved by appropriate regulatory authorities and an affirmative vote of the shareholders, the Company's <FONT SIZE=3>1994 Stock Option Plan, as amended, is modified as follows:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The second sentence in Section 2 shall be amended from: </P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"</FONT><FONT FACE="CG Times">The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed </I></FONT>2,336,000<I><FONT FACE="CG Times"> shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">To the Following:</P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed 3,136,000 shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No other changes to the 1994 Stock Option Plan are made as a result of this Sixth Amendment to the Plan.</P></DIR>
</DIR>
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<DOCUMENT>
<TYPE>EX-10.13
<SEQUENCE>4
<FILENAME>exh1013.htm
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<TITLE>SOLITARIO RESOURCES CORPORATION</TITLE>
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<BODY>

<FONT FACE="CG Times"><P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">1994 STOCK OPTION PLAN</P>
</FONT><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SEVENTH AMENDMENT</P>
<P ALIGN="CENTER"></P>
<P ALIGN="LEFT">&nbsp;</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">Pursuant to a resolution unanimously passed by the Board of Directors on March 7, 2002, and subsequently approved by appropriate regulatory authorities and an affirmative vote of the shareholders, the Company's <FONT SIZE=3>1994 Stock Option Plan, as amended, is modified as follows:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The second sentence in Section 2 shall be amended from: </P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"</FONT><FONT FACE="CG Times">The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed </I></FONT>3,136,000<I><FONT FACE="CG Times"> shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">To the Following:</P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed 3,736,000 shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No other changes to the 1994 Stock Option Plan are made as a result of this Seventh Amendment to the Plan.</P>
</FONT><P ALIGN="LEFT"></P></DIR>
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<DOCUMENT>
<TYPE>EX-10.15
<SEQUENCE>5
<FILENAME>exh1015.htm
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<TITLE>(Solitario Letterhead)</TITLE>
<META NAME="FooterPath" CONTENT="cmd\368901\property agreements\0083">
<META NAME="_AdHocReviewCycleID" CONTENT="-489724412">
<META NAME="_EmailSubject" CONTENT="La pampa">
<META NAME="_AuthorEmail" CONTENT="walt@crownresources.com">
<META NAME="_AuthorEmailDisplayName" CONTENT="Walt Hunt">
<META NAME="_PreviousAdHocReviewCycleID" CONTENT="-2028123494">
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<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<FONT FACE="Courier New"><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</FONT><FONT FACE="Arial"><P ALIGN="JUSTIFY">July 31, 2002</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Mr. Andy Swarthout</P>
<P ALIGN="JUSTIFY">Mr. David Volkert</P>
<P ALIGN="JUSTIFY">Bear Creek Mining Company </P>
<P ALIGN="JUSTIFY">8340 N. Thornydale Rd. #110-263</P>
<P ALIGN="JUSTIFY">Tucson, AZ 85741</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">RE:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LETTER OF INTENT</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Gentlemen,</P>
<P ALIGN="JUSTIFY"></P><DIR>

<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to our recent discussions, Bear Creek Mining Company, an Arizona Corporation ("BCMC") wishes to acquire the exclusive right to earn an interest in the La Pampa Property in the Department of Lambayeque, Per&uacute; (the "Property"), the mineral rights to which are held by are held by Minera Solitario Peru S.A.C. ("MSP").  MSP is a wholly owned subsidiary of Solitario Resources Corporation of Denver, Colorado ("Solitario").  The Property consists of a 19 square kilometer area near Chongoyape Per&uacute;, a more definitive description of which is shown on Exhibit A attached.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">1.&nbsp;&nbsp;a) Subject to the Conditions (as hereinafter defined), this Letter of Intent sets forth terms under which BCMC will have an option to acquire an interest in the Property by way of the acquisition of a sharehold interest in a new corporate entity ("Newco") to be formed by MSP under the laws of Per&uacute; and which shall hold as its sole assets the Property and its initial capital. MSP shall create Newco prior to such time as BCMC exercises it option to acquire an interest in Newco (the "Option Period").  MSP and BCMC may enter into an Operating Agreement at such time as BCMC deems appropriate which provides for the detailed terms under which BCMC shall conduct exploration during the Option Period and under which MSP and BCMC may jointly invest in the property through Newco after BCMC has vested its interest in Newco. The Operating Agreement shall be mutually agreed upon by the Parties and which shall form a basis for the development and mining of the Property by Newco based u
pon terms commonly accepted in the mining industry.</P>
</FONT><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Arial">b) During the Option Period, MSP agrees to provide the Property exclusively to BCMC free of any encumbrance or title defect and will pay expenses to remedy any such defects which may be discovered to have existed prior to signing of this Letter of Intent.  Should the Parties decide to acquire additional mineral rights within two kilometers of the boundaries of the claims shown on Exhibit A those rights shall be incorporated into and be an integral part of the Property.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">2.&nbsp;&nbsp;a) In order to acquire a 51% interest in Newco, BCMC shall undertake the following cumulative work commitments with respect to the Property over a period of five years, which five year period begins on the date of signing of this Letter of Intent:</P>
<P ALIGN="JUSTIFY"></P></DIR>
</FONT>
<P ALIGN="LEFT"><TABLE BORDER CELLSPACING=0 CELLPADDING=4 WIDTH=202>
<TR><TD WIDTH="26%" VALIGN="MIDDLE">
<FONT FACE="Arial"><P ALIGN="JUSTIFY">Year</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="JUSTIFY">Expenditure (US$)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="RIGHT">1</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="RIGHT">100,000</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="RIGHT">2</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="RIGHT">300,000</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="RIGHT">3</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="RIGHT">700,000</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="RIGHT">4</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="RIGHT">1,300,000</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<U><FONT FACE="Arial"><P ALIGN="RIGHT">5</U></FONT></TD>
<TD WIDTH="74%" VALIGN="TOP">
<U><FONT FACE="Arial"><P ALIGN="RIGHT">2,100,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="JUSTIFY">Total</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="RIGHT">4,500,000</FONT></TD>
</TR>
</TABLE>
</P>

<FONT FACE="Arial"><P ALIGN="JUSTIFY"></P><DIR>

<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowable costs allocable to the work commitment shall relate to direct costs expended on exploration and related activities and reasonable administration costs which directly relate to expenditures on the Property as is generally accepted within the mining industry.  Solitario shall have the right to verify work expenditures upon prior notice to BCMC. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) For as long as BCMC is earning its right to exercise its option under the terms of this Letter of Intent or the Operating Agreement, BCMC shall make all surface rights, lease and tax payments with respect to the Property, defend its good standing and pay the annual holding costs (<I>derechos de vigencia)</I> for the claims as required by Peruvian law. All payments by BCMC for surface rights (<I>servidumbre</I>), acquisition of surface titles, and mineral rights shall be deemed to be applicable to the work commitment. At the signing of this Letter Agreement the <I>derechos de vigencia</I> for year 2001 were paid in arrears in June 2002.  BCMC makes a firm commitment to pay of the<I> derechos de vigencia</I> for year 2002 payable not later than June 30, 2003, which are estimated to be approximately $6,000.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) BCMC commits to complete at least 1000 meters of exploration drilling within the first year of the Option Period subject to the Conditions, including the condition in Section 2(f) below.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) At any time after completion of 1000 meters of drilling, BCMC may withdraw from the Agreement by notifying Solitario of termination in writing.  Notwithstanding notification of termination by BCMC, obligations in relation to property payments by BCMC under section 2(b) above shall endure for a period of forty-five days after the date of notification of termination. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) BCMC may accelerate the schedule of its work commitment to earn its right to exercise its option by completing its investment of $4,500,000 at any time during the five year Option Period, at which time BCMC will have been deemed to have fulfilled its work commitment and may exercise its option to acquire an interest in Newco.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) Upon signing of this Letter of Intent BCMC will endeavor to acquire the surface rights to perform exploration from the title holder(s) of the Property under favorable terms and within a reasonable time frame.  Should this acquisition require more than four months, the effective date of the work commitments as described in Section 2(a) of this Letter of Intent shall be postponed for such period in excess of four months as is required to acquire such rights but not to exceed an additional period of six months.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">3.&nbsp;&nbsp;a) Upon fulfillment of its work commitments BCMC may exercise its option to receive a 51% sharehold interest in Newco. This transfer of corporate interest will be recorded in the books of Newco by way of a sale of shares for a nominal amount representing 51% of the initial capital of Newco.  The parties shall mutually agree on the manner of this transfer which provides the most favorable tax treatment for both parties. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Upon completion of the initial earn-in requirements and notification to Solitario of the exercise of its option to acquire a 51% interest in Newco, BCMC may concurrently elect to increase its corporate interest in the Company from 51% to 65% by committing to complete a bankable feasibility study within two years of the election.  BCMC shall earn the additional 14% of the shares in the Company upon completion of the bankable feasibility study and the accounts of the Newco shall be accordingly adjusted.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) The Shareholders of Newco shall record that the initial contribution of each Party upon the earn in of BCMC's 51% (or 65%) interest will be deemed to be in proportion to the actual expenses incurred by BCMC in earning its interest. For greater certainty, the formula IPI= [A/(A+B)] describes the initial contribution of the Parties where IPI (the Initial Participating Interest) of BCMC equals either 51% or 65% and A represents the actual expenditure incurred by BCMC to earn the corresponding interest and B represents the deemed initial contribution of Solitario. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Subsequent to earn in by BCMC the Participating interest of each party may, from time to time, be calculated using a similar formula to that shown in Section 3(d): PI = [A/(A+B)] where in PI is equal to the Participating Interest of Party 1 and A is the Initial Contribution of Party 1 plus its additional contributions, and B is the other Party's Initial Contribution plus additional contributions.  Should either Party's Participating Interest be diluted to 10% then the diluting Party's interest shall revert to a 2.5% Net Smelter Return as defined in Exhibit B.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">4.&nbsp;&nbsp;The Bylaws of Newco shall generally conform to the terms of the Operating Agreement and the appointment of its Directors shall be mutually agreed upon by the parties to the Operating Agreement for so long as the Operating Agreement is in force.  The Operating Agreement shall: 1) specify procedures for the approval of budgets, cash calls, reporting, notifications etc., all in accordance with standard mining practice, 2) provide that, following the Option Period, the shareholders of the Company shall bear the costs of exploration, development and mining in proportion to each party's ownership of the shares of the Company, 3) that the voting representation on the Board of Directors of Newco shall be in proportion to each Party's Participating Interest and 4) other provisions as are required by mutual agreement and standard mining practice to facilitate the operational and administrative functions of the company.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">5.&nbsp;&nbsp;The Letter of Intent or the Operating Agreement shall terminate upon the earlier to occur of the following:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(i)&nbsp;&nbsp;after written notice by BCMC to Solitario pursuant to the terms of Section &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2(d);</P><DIR>

<P ALIGN="JUSTIFY">(ii)&nbsp;&nbsp;BCMC fails to complete the cumulative work commitments on the anniversary dates of the work commitment schedule shown in Section 2(a) subject to the terms of Section 2(f);</P></DIR>

<P ALIGN="JUSTIFY">(iii)&nbsp;&nbsp;the mutual agreement of both parties;</P><DIR>

<P ALIGN="JUSTIFY">the parties cease to own an interest in the Property; and</P>
<P ALIGN="JUSTIFY">(iv)&nbsp;&nbsp;failure of BCMC to acquire access rights within ten months of the signing of this Letter of Intent as provided for in Section 2(f).</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P></DIR>

<P ALIGN="JUSTIFY">6.&nbsp;&nbsp;BCMC will be the operator of the project during the term of the option.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">7.&nbsp;&nbsp;During the Option Period BCMC agrees to provide Solitario with quarterly written reports of factual and interpretive data as well as more frequent updates regarding material results and, as needed, for corporate reporting requirements.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">8.&nbsp;&nbsp;Draft releases of information to the public by a Party shall be provided to the  other Party for comment and approval, such review to occur in a timely manner. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">9.&nbsp;&nbsp;This Letter of Intent is subject to the following conditions (the "Conditions"):</P>
<P ALIGN="JUSTIFY"></P><DIR>

<P ALIGN="JUSTIFY">&nbsp;&nbsp;(i)&nbsp;&nbsp;satisfactory completion by BCMC of due diligence in respect of the adequacy of mineral title of the Property not to exceed a period of thirty (30) days; and</P>
<P ALIGN="JUSTIFY"></P></DIR>

<P ALIGN="JUSTIFY">&nbsp;&nbsp;(ii)&nbsp;&nbsp;the acquisition of surface rights as contemplated by Section 2(f) above.</P>
<P ALIGN="JUSTIFY"></P><DIR>

<P ALIGN="JUSTIFY">10.&nbsp;&nbsp;Until such time as a definitive form of agreement is executed, the terms of this Letter of Intent will be binding on the parties.</P>
<P ALIGN="JUSTIFY"></P></DIR>

<P ALIGN="JUSTIFY">11.&nbsp;&nbsp;This Letter of Intent shall be interpreted in accordance with and governed by &nbsp;&nbsp;the laws of Colorado.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P></DIR>

<P ALIGN="JUSTIFY">The parties express their agreement to the terms of this Letter of Intent by signing below.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Solitario Resources Corporation</P>
</B></FONT><P ALIGN="LEFT">4251 Kipling St. #390</P>
<P ALIGN="LEFT">Wheat Ridge, CO 80033</P>
<FONT FACE="Arial"><P ALIGN="JUSTIFY"></P>
</FONT><P ALIGN="LEFT">By<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><FONT FACE="Arial"><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date:___________________</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="JUSTIFY">Bear Creek Mining Company</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">By<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date:___________________</P>
<P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER">EXHIBIT A</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The claims comprising the Property:</P>
<P ALIGN="JUSTIFY"></P></FONT>
<TABLE BORDER CELLSPACING=2 BORDERCOLOR="#000000" CELLPADDING=8 WIDTH=576>
<TR><TD WIDTH="25%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="LEFT">&nbsp;</P>
<B><P ALIGN="CENTER">DERECHO</B></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<B><FONT FACE="Arial"><P ALIGN="LEFT"></P>
<P ALIGN="CENTER">CODIGO</B></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<B><FONT FACE="Arial"><P ALIGN="LEFT"></P>
<P ALIGN="CENTER">ASIENTO</B></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<B><FONT FACE="Arial"><P ALIGN="LEFT"></P>
<P ALIGN="CENTER">FICHA</B></FONT></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="CENTER">La Pampa uno</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="CENTER">01-00168-99</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="CENTER">02</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="CENTER">16376</FONT></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="CENTER">La Pampa dos</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="CENTER">01-00191-99</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="CENTER">02</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="CENTER">16336</FONT></TD>
</TR>
</TABLE>

<FONT FACE="Arial"><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="CENTER">EXHIBIT B</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">Net Smelter Return</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">The Party with the majority share of the La Pampa Project shall pay to the diluting Party with respect to the substances produced and sold form the Property two and one half percent (2.5%) of the "Net Returns" received by the majority Party from the sale of the substances produced.  The term "Net Returns" shall mean the total receipts from the mint, refinery, smelter or other purchaser less only (i) the transportation costs from the Property to the place of sale, if paid by the majority Party and (ii) the costs, penalties, treatment charges and other charges paid by the majority Party to, or deducted from, the amount paid by the mint, refinery, smelter or other purchaser.  Net Returns royalties payable hereunder shall be paid within forty-five (45) days following the end of each calendar quarter in which the majority Party receives the Net Returns.  Payments shall be made to the diluting Party at the address of record in this agreement or to such depository or address that the diluting Party 
shall designate to the majority Party in writing.  Net Returns payments shall be accompanied by a statement setting forth the amount of substances sold, the total received therefore and the method used to determine the Net Returns payable.  Each such statement shall be deemed correct and binding upon the diluting Party unless the diluting Party shall dispute the accuracy thereof in writing within six (6) months following the end of the calendar year in which the Net Return was paid.  The diluting Party shall have the right to audit the accounting of the Net Return calculations of the majority Party.</P></FONT></BODY>
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<TYPE>EX-10.14
<SEQUENCE>6
<FILENAME>exh1014.htm
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<TITLE>Rio de Janeiro, 30 de setembro de 2003</TITLE>
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<P ALIGN="RIGHT">Rio de Janeiro, 30 de setembro de 2003</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">A</P>
<P ALIGN="JUSTIFY">UNAMGEN MINERACAO E METALURGIA S.A.</P>
<P ALIGN="JUSTIFY">CARNAUBA MINERACAO LTDA.</P>
<P ALIGN="JUSTIFY">SAO BENTO MINERACAO S.A.</P>
<P ALIGN="JUSTIFY">Fazenda Sao Bento</P>
<P ALIGN="JUSTIFY">Municipio de Santa Barbara, MG</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">At. Srs. Lincoln Silva e Sergio Luiz Martins Pereira</P>
<P ALIGN="JUSTIFY"></P><DIR>
<DIR>
<DIR>
<DIR>

<U><P ALIGN="JUSTIFY">Ref.:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acordo relativo ao prosseguimento do Projeto Pedra Branca</P>
</U><P ALIGN="JUSTIFY"></P></DIR>
</DIR>
</DIR>
</DIR>

<P ALIGN="JUSTIFY">Prezados senhores,</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fazemos referencia ao denominado "Projeto Pedra Branca", no qual foram desenvolvidas pesquisas minerarias em areas localizadas em Pedra Branca, Ceara, em conformidade com os direitos de pesquisa outorgados a Unamgem Mineracao e Metalurgia S.A. ("Unamgem") por meio dos Processos DNPM n s 800.470/96 e 800.483/96, e a Carnauba Mineracao Ltda. ("Carnauba") por meio dos Processos DNPM n s 800.446/96, 800.458/96, 800.459/96, 800.471/96, 800.482/96, 800.495/96, 800.507/96, 800.520/96. Consoante o Acordo de Cooperacao Comercial e seu primeiro Aditamento, celebrados respectivamente em 30/9/1999 e 30/12/1999, entre Unamgem, Carnauba e Altoro Mineracao Ltda. ("Altoro"), tais direitos de pesquisa foram cedidos a Altoro, tendo sido as pesquisas minerarias desenvolvidas conjuntamente pela Altoro e pela Unamgem, que investiram, respectivamente, 70 percent e 30 percent dos recursos empregados no empreendimento.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Como e de conhecimento de V. Sas., apesar dos esforcos das partes, as pesquisas nao revelaram, ate o presente momento, potencial minerario das areas de Pedra Branca, estando os direitos de pesquisa concedidos por meio dos processo acima mencionados por expirar no dia 30/10/2003. Considerando tal situacao e tendo em vista o interesse da Altoro e da Sao Bento Mineracao S.A. ("Sao Bento") em continuar desenvolvendo as pesquisas minerarias nas areas em Pedra Branca, Ceara, vimos propor a V. Sas. os seguintes termos e condicoes para o desenvolvimento do Projeto Pedra Branca:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Altoro nao apresentara o relatorio final relativo as pesquisas realizadas em conformidade com os direitos de pesquisa outorgados pelos Processos DNPM acima mencionados, deixando, assim, caducar tais direitos de pesquisa.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequentemente, a Altoro ira requerer ao DNPM os direitos de pesquisa sobre as areas do Projeto Pedra Branca (areas identicas aquelas que foram objeto dos Processos DNPM acima mencionados), envidando seus melhores esforcos para que lhe sejam concedidos tais direitos de pesquisa. A Altoro ressalva que, nao obstante seus esforcos, o DNPM podera nao lhe conceder os direitos de pesquisa requeridos.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Obtidos os direitos minerarios sobre as areas do Projeto Pedra Branca, a Altoro ira individualmente realizar as pesquisas em tais areas, realizando todos os atos e utilizando-se da melhor tecnica para que ali seja identificada lavra economicamente viavel.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Identificada a exeqiibilidade tecnica e economica da lavra em qualquer das areas do Projeto Pedra Branca, uma vez iniciada a sua atividade, a Altoro pagara a Sao Bento o valor correspondente a 2 percent dos resultados da lavra a ceu aberto ou subterranea de platina, outros minerais ou subprodutos. Considerar-se-a resultados da lavra, para tal efeito, todos os valores obtidos com a venda dos minerios extraidos da lavra, deduzidos das seguintes importancias: (a) tributos diretamente incidentes sobre a producao e a venda do minerio (incluindo a Compensacao Financeira pela Exploracao de Recursos Minerais, mas nao sendo incluidos os tributos sobre a renda, o faturamento ou a folha de salarios); (b) despesas incorridas com o transporte dos minerios das usinas de beneficiamento ou depositos da Altoro para o local de entrega ao comprador; e (c) seguro dos minerios para o transporte referido na alinea "b".</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A participacao da Sao Bento nos resultados da lavra, referida no item 4 anterior, sera apurada e paga pela Altoro a cada quatro meses, podendo a Sao Bento promover auditoria das contas apresentadas.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A aceitacao desta proposta implicara em plena e geral quitacao da Unamgem, da Carnauba e da Altoro das obrigacoes recirocas previstas no Acordo de Cooperacao Comercial e seu primeiro Aditamento, respectivamente de 30/9/1999 e 30/12/1999, bem como das obrigacoes constantes do Instrumento Particular de Cessao e Transferencia de 20/1/2000, declarando nada mais ter a reclamar quanto a tais instrumentos.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Caso o DNPM nao conceda o direito de pesquisa relativo a nenhuma das areas do Projeto Pedra Branca, ou na hipotese de ser concedido o direito de pesquisa sobre alguma dessas areas, mas as pesquisas desenvolvidas pela Altoro nao identificarem lavra economicamente viavel, o acordo que derivar da aceitacao da presente proposta se resolvera de pleno direito, dando-se as partes por reciprocamente quitadas e satisfeitas, declarando nada mais ter a reclamar.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Qualquer controversia decorrente ou relacionada a interpretacao ou cumprimento do acordo que derivar da aceitacao da presente proposta, sera solucionada por arbitragem de acordo com as regras da Camara de Arbitragem Empresarial - Brasil, por um ou mais arbitros nomeados de acordo com tais regras, em Belo Horizonte, Estado de Minas Gerais.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solicitamos a V.Sas. a gentileza de apor vossas assinaturas no espaco a seguir, indicando a aceitacao da Unamgem, da Carnauba e da Sao Bento aos termos da proposta acima descrita, que passara a reger, em carater irrevogavel e irretratavel, as relacoes entre tais empresas e a Altoro, bem como seus sucessores a qualquer titulo, relativamente ao Projeto Pedra Branca.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Atenciosamente,</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="CENTER">ALTORO MINERACAO LTDA.</P>
<P ALIGN="CENTER">Luiz Mauricio Ferraiuoli Azevedo</P>
<P ALIGN="CENTER">(signature)</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">MINERA ALTORO BRAZIL (BVI) CORPORATION</P>
<P ALIGN="CENTER">Luiz Mauricio Ferraiuoli Azevedo</P>
<P ALIGN="CENTER">(signature)</P>
<P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY">De acordo:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="CENTER">UNAMGEM MINERACAO E METALURGIA S.A.</P>
<P ALIGN="CENTER">Lincoln Silva&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sergio Luiz Martins Pereira</P>
<P ALIGN="CENTER">(signatures)</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">CARNAUBA MINERACAO LTDA.</P>
<P ALIGN="CENTER">Lincoln Silva&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sergio Luiz Martins Pereira</P>
<P ALIGN="CENTER">(signatures)</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">SO BENTO MINERACAO S.A.</P>
<P ALIGN="CENTER">Lincoln Silva&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sergio Luiz Martins Pereira</P>
<P ALIGN="CENTER">(signatures)</P>
<P ALIGN="CENTER"></P>
<FONT FACE="Arial"><P ALIGN="LEFT">&nbsp;</P>
</FONT><P ALIGN="LEFT">Following is a summary of NSR Letter Agreement:</P>
<U><P ALIGN="LEFT"> Acordo relativo ao prosseguimento do Projeto Pedra Branca</P>
<P ALIGN="LEFT">Dated September 30, 2003</P>
</U><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">As has been previously communicated by Altoro and despite the best efforts made during the past exploration work in the Pedra Branca Project, until today there are no potential mining resources identified within the area of the 10 Eldorado claims. As you know these claims are due for renewal as mining concessions on the 30<SUP>th</SUP> of October 2003. Given this situation, and bearing in mind  Altoro and S&atilde;o Bento have an interest in continuing the exploration work under development, find below terms and conditions proposed to the continue the present work.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Altoro will not present its final exploration report with reference to all exploration work done on Carnauba and Unamgen claims.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequently, Altoro will stake the same 10 claims, exactly in the same manner as exists for the existing claims, following the current coordinates and area. Irrespective of the good will and effort by Altoro, it is possible that the DNPM might not grant the company the same 10 claims.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Once the new claims are published, Altoro will individually carry on the exploration work in these claims area, trying to, under the best practice, identify a mineable deposit.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the case that it is&nbsp;proved the existence of a mineable reserve within the area delimited by the&nbsp;current Eldorado claims, Altoro agrees to pay a 2 percent NSR as follows:</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The above royalty will be paid in the case of an open pit or underground operation. This includes platinum and other minerals, as well as all its byproducts.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This royalty will be paid from total product sales after deducting the items below:</P><DIR>
<DIR>

<P ALIGN="LEFT">4.2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes over production and sales, including CFEM (Mineral Resources Finance Compensation payment). </P>
<P ALIGN="LEFT">4.2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transport expenses from Altoro processing plants and/or deposits to clients.</P>
<P ALIGN="LEFT">4.2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance on products sold.</P>
<P ALIGN="LEFT"></P></DIR>
</DIR>

<P ALIGN="LEFT">Taxes over income, revenue and payroll are not included.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement of Sao Bento (Eldorado) interest in the mining results, as stated on item 4 above, will be  paid by Altoro every 4 months. Sao Bento will be allowed to audit all accounts presented.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acceptance of this document means total accordance between Unamgem, Carnauba and Altoro on what concerns clauses from the former Commercial Cooperation Document and all subsequent documents from 30/09/1999, 30/12/1999, and 20/01/2000.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the case that the DNPM does not grant Altoro the same 10 claims originally transferred from Unamgem and Carnauba, or in the event of being only partially granted, the present agreement and all derived agreements will consider fulfilled all demands on this respect.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All eventual controversies, doubts or questions with respect to this document will be resolved in accordance to the rules of one of the Brazilian Business Arbitration Chambers.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="CENTER">ALTORO MINERACAO LTDA.</P>
<P ALIGN="CENTER">/s/Luiz Mauricio Ferraiuoli Azevedo</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">MINERA ALTORO BRAZIL (BVI) CORPORATION</P>
<P ALIGN="CENTER">/s/Luiz Mauricio Ferraiuoli Azevedo</P>
<P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY">De acordo:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="CENTER">UNAMGEM MINERACAO E METALURGIA S.A.</P>
<P ALIGN="CENTER">/s/Lincoln Silva&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/Sergio Luiz Martins Pereira</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">CARNAUBA MINERACAO LTDA.</P>
<P ALIGN="CENTER">/s/Lincoln Silva&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/Sergio Luiz Martins Pereira</P>
<P ALIGN="LEFT"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">SAO BENTO MINERACAO S.A.</P>
<P ALIGN="CENTER">/s/Lincoln Silva&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/Sergio Luiz Martins Pereira</P></BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.11
<SEQUENCE>7
<FILENAME>exh1011.htm
<TEXT>
<HTML>
<HEAD>
<META NAME="Generator" CONTENT="Microsoft Word 10.0">
<TITLE>SOLITARIO RESOURCES CORPORATION</TITLE>
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<BODY>

<U><FONT FACE="CG Times"><P ALIGN="RIGHT">Exhibit 10.11</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">1994 STOCK OPTION PLAN</P>
</FONT><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">FIFTH AMENDMENT</P>
<P ALIGN="CENTER"></P>
<P ALIGN="LEFT">&nbsp;</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">Pursuant to a consent resolution unanimously passed by the Board of Directors on November 3, 1999, and subsequently approved by appropriate regulatory authorities and an affirmative vote of the shareholders, the Company's <FONT SIZE=3>1994 Stock Option Plan, as amended, is modified as follows:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The second sentence in Section 2 shall be amended from: </P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"</FONT><FONT FACE="CG Times">The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed 1,936,000 shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">To the Following:</P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed 2,336,000 shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No other changes to the 1994 Stock Option Plan are made as a result of this Fifth Amendment to the Plan.</P></DIR>
</DIR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.10
<SEQUENCE>8
<FILENAME>exh1010.htm
<TEXT>
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<TITLE>SOLITARIO RESOURCES CORPORATION</TITLE>
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<BODY>

<U><FONT FACE="CG Times"><P ALIGN="RIGHT">Exhibit 10.10</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">1994 STOCK OPTION PLAN</P>
</FONT><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">FOURTH AMENDMENT</P>
<P ALIGN="CENTER"></P>
<P ALIGN="LEFT">&nbsp;</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">Pursuant to a consent resolution unanimously passed by the Board of Directors on June 8, 1999, and subsequently approved by appropriate regulatory authorities and an affirmative vote of the shareholders, the Company's <FONT SIZE=3>1994 Stock Option Plan, as amended, is modified as follows:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The second sentence in Section 2 shall be amended from: </P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"</FONT><FONT FACE="CG Times">The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed 1,536,000 shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">To the Following:</P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed 1,936,000 shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No other changes to the 1994 Stock Option Plan are made as a result of this Fourth Amendment to the Plan.</P></DIR>
</DIR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.9
<SEQUENCE>9
<FILENAME>exh109.htm
<TEXT>
<HTML>
<HEAD>
<META NAME="Generator" CONTENT="Microsoft Word 10.0">
<TITLE>SOLITARIO RESOURCES CORPORATION</TITLE>
<META NAME="Template" CONTENT="C:\Documents and Settings\paula\Application Data\Microsoft\Templates\EDGARizr.dot">
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<BODY>

<U><FONT FACE="CG Times"><P ALIGN="RIGHT">Exhibit 10.9</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">1994 STOCK OPTION PLAN</P>
</FONT><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">THIRD AMENDMENT</P>
<P ALIGN="CENTER"></P>
<P ALIGN="LEFT">&nbsp;</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">Pursuant to a resolution unanimously passed by the Board of Directors on April 16, 1997, and subsequently approved by appropriate regulatory authorities and an affirmative vote of the shareholders, the Company's <FONT SIZE=3>1994 Stock Option Plan, as amended, is modified as follows:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The second sentence in Section 2 shall be amended from: </P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"</FONT><FONT FACE="CG Times">The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed 1,386,000 shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">To the Following:</P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed 1,536,000 shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No other changes to the 1994 Stock Option Plan are made as a result of this Third Amendment to the Plan.</P></DIR>
</DIR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.8
<SEQUENCE>10
<FILENAME>exh108.htm
<TEXT>
<HTML>
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<TITLE>SOLITARIO RESOURCES CORPORATION</TITLE>
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<BODY>

<U><FONT FACE="CG Times"><P ALIGN="RIGHT">Exhibit 10.8</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">1994 STOCK OPTION PLAN</P>
</FONT><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SECOND AMENDMENT</P>
<P ALIGN="CENTER"></P>
<P ALIGN="LEFT">&nbsp;</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">Pursuant to a resolution unanimously passed by the Board of Directors on December 11, 1996, and subsequently approved by appropriate regulatory authorities and an affirmative vote of the shareholders, the Company's <FONT SIZE=3>1994 Stock Option Plan, as amended, is modified as follows:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The second sentence in Section 2 shall be amended from: </P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"</FONT><FONT FACE="CG Times">The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed 1,170,000 shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">To the Following:</P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed 1,386,000 shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No other changes to the 1994 Stock Option Plan are made as a result of this Second Amendment to the Plan.</P></DIR>
</DIR>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.7
<SEQUENCE>11
<FILENAME>exh107.htm
<TEXT>
<HTML>
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<TITLE>SOLITARIO RESOURCES CORPORATION</TITLE>
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<BODY>

<U><FONT FACE="CG Times"><P ALIGN="RIGHT">Exhibit 10.7</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">1994 STOCK OPTION PLAN</P>
</FONT><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">FIRST AMENDMENT</P>
<P ALIGN="CENTER"></P>
<P ALIGN="LEFT">&nbsp;</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">Pursuant to a resolution unanimously passed by the Board of Directors on December 15, 1995, and subsequently approved by appropriate regulatory authorities and an affirmative vote of the shareholders, the Company's <FONT SIZE=3>1994 Stock Option Plan is modified as follows:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The second sentence in Section 2 shall be amended from: </P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"</FONT><FONT FACE="CG Times">The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed 1,100,000 shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">To the Following:</P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">"The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed 1,170,000 shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company."</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No other changes to the 1994 Stock Option Plan are made as a result of this First Amendment to the Plan.</P></DIR>
</DIR>
</FONT></BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.6
<SEQUENCE>12
<FILENAME>exh106.htm
<TEXT>
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<TITLE>THIRD AMENDMENT TO THE MANAGEMENT</TITLE>
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<P ALIGN="LEFT"></P>
<B><U><P ALIGN="RIGHT">Exhibit 10.6</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">THIRD AMENDMENT TO THE MANAGEMENT</P>
<P ALIGN="CENTER">AND TECHNICAL SERVICES AGREEMENT BETWEEN</P>
<P ALIGN="CENTER">CROWN RESOURCES CORP. OF COLORADO AND </P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION DATED JANUARY 1, 1994</P>
</B><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Dated July 1, 2002</P>
<P ALIGN="CENTER"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">Whereas the Solitario Resources Corporation (the <FONT FACE="WP TypographicSymbols">A</FONT>Company<FONT FACE="WP TypographicSymbols">@</FONT>) and Crown Resources Corp. of Colorado (<FONT FACE="WP TypographicSymbols">A</FONT>Crown<FONT FACE="WP TypographicSymbols">@</FONT>) entered into a Management and Technical Services Agreement (the <FONT FACE="WP TypographicSymbols">A</FONT>Agreement<FONT FACE="WP TypographicSymbols">@</FONT>) dated January 1, 1994 which provided that Crown would provided, management, administrative, accounting, treasury, and technical services to Solitario; and that the agreement was amended by the first amendment to the agreement dated March 25, 1999 and amended by the second amendment to the agreement dated November 16, 2000; and</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">the Agreement (as amended) is hereby amended as follows:</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">Paragraph 2 (b) (1) shall be deleted and be replaced by the following:</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>
<DIR>
<DIR>

<P ALIGN="LEFT">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Service Fees</U>. In addition to payment or reimbursement of Costs paid by Crown, Solitario shall pay to Crown service fees as follows:</P><DIR>
<DIR>

<P ALIGN="LEFT">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario will reimburse Crown an amount equal to (i) seventy five percent (75%) of the following costs: salaries and benefits of Houston personnel, and Houston office rent, insurance, and investor relations meeting expenses; and (ii) Solitario will reimburse Crown an amount equal to fifty percent (50%) of the following costs: salaries and benefits of Denver office personnel (excluding Mr. Chris Herald below in (iii)), and Denver office rent, insurance and investor relations expenses; and (iii) Solitario will reimburse Crown an amount equal to twenty five percent of the salaries and benefits of Mr. Christopher Herald and Mr. Walt Hunt.  </P>
<P ALIGN="LEFT"></P></DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>

<P ALIGN="LEFT">Paragraph 11 shall deleted and replaced by the following:</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>

<P ALIGN="LEFT">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Term and Termination</U>.  This agreement shall commence on July 1, 2002, and shall remain in effect for a term of three (3) years (the <FONT FACE="WP TypographicSymbols">A</FONT>Primary Term<FONT FACE="WP TypographicSymbols">@</FONT>) and shall continue thereafter until terminated on the last day of any month occurring on or after the last of the Primary Term if Solitario or Crown elects to terminate this Agreement and gives at least one hundred eighty (180) days<FONT FACE="WP TypographicSymbols">=</FONT> prior written notice of such termination, specifying the date of such termination, to the other.  Both parties may terminate or modify the agreement by mutual consent at any time.  Should Solitario fail to pay its service fees, and has not cured such failure within 30 days, Crown may immediately unilaterally terminate the agreement.  If either party declares itself insolvent or takes action to enter into a plan of bankruptcy or files a plan of reorganizat
ion or bankruptcy in any court or jurisdiction over such matters, the other party may unilaterally terminate the agreement. </P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P></DIR>
</DIR>

<P ALIGN="LEFT">All other terms and conditions of the Agreement remain the same.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">EXECUTED as of the day first written above.</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>

<P ALIGN="LEFT">by: Crown Resources Corp. of Colorado&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by: Solitario Resources Corporation</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">________________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;______________________________</P>
<P ALIGN="LEFT">title_____________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;title___________________________</P>
<P ALIGN="LEFT"></P></DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>13
<FILENAME>exh105.htm
<TEXT>
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<TITLE>SECOND AMENDMENT TO THE MANAGEMENT</TITLE>
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<P ALIGN="LEFT"></P>
<B><U><P ALIGN="RIGHT">Exhibit 10.5</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SECOND AMENDMENT TO THE MANAGEMENT</P>
<P ALIGN="CENTER">AND TECHNICAL SERVICES AGREEMENT BETWEEN</P>
<P ALIGN="CENTER">CROWN RESOURCES CORP. OF COLORADO AND </P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION DATED JANUARY 1, 1994</P>
</B><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Dated November 16, 2000</P>
<P ALIGN="CENTER"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">Whereas the Company and Crown Resources Corp. of Colorado (<FONT FACE="WP TypographicSymbols">A</FONT>Crown<FONT FACE="WP TypographicSymbols">@</FONT>) entered into a Management and Technical Services Agreement (the <FONT FACE="WP TypographicSymbols">A</FONT>Agreement<FONT FACE="WP TypographicSymbols">@</FONT>) dated January 1, 1994 which provided that Crown would provided, management, administrative, accounting, treasury, and technical services to Solitario; and that the agreement was amended by the first amendment to the agreement dated March 25, 1999; and</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">the Agreement (as amended) is hereby amended as follows:</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">Paragraph 2 (b) shall be deleted and be replaced by the following:</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>
<DIR>
<DIR>

<P ALIGN="LEFT">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Service Fees</U>. In addition to payment or reimbursement of Costs paid by Crown, Solitario shall pay to Crown service fees as follows:</P><DIR>
<DIR>

<P ALIGN="LEFT">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario will reimburse Crown an amount equal to seventy five percent (75%) of the following costs; salaries and benefits of Denver and Houston personnel, Denver and Houston office rent, insurance, and investor relations meeting expenses (trade shows).  </P>
<P ALIGN="LEFT">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service fees shall be paid monthly in arrears within fifteen (15) days after receipt by Solitario of Crown<FONT FACE="WP TypographicSymbols">=</FONT>s invoice for the same.  Service fee rates shall be subject to review annually and revised by mutual agreement of Crown and Solitario.</P>
<P ALIGN="LEFT"></P></DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>

<P ALIGN="LEFT">Paragraph 11 shall deleted and replaced by the following:</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>

<P ALIGN="LEFT">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Term and Termination</U>.  This agreement shall commence on December 1, 2000, and shall remain in effect for a term of three (3) years (the <FONT FACE="WP TypographicSymbols">A</FONT>Primary Term<FONT FACE="WP TypographicSymbols">@</FONT>) and shall continue thereafter until terminated on the last day of any month occurring on or after the last of the Primary Term if Solitario or Crown elects to terminate this Agreement and gives at least one hundred eighty (180) days<FONT FACE="WP TypographicSymbols">=</FONT> prior written notice of such termination, specifying the date of such termination, to the other.  Both parties may terminate or modify the agreement by mutual consent at any time.  Should Solitario fail to pay its service fees, and has not cured such failure within 30 days, Crown may immediately unilaterally terminate the agreement.  If either party declares itself insolvent or takes action to enter into a plan of bankruptcy or files a plan of reorgan
ization or bankruptcy in any court or jurisdiction over such matters, the other party may unilaterally terminate the agreement. </P>
<P ALIGN="LEFT"></P></DIR>
</DIR>

<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">All other terms and conditions of the Agreement remain the same.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">EXECUTED as of the day first written above.</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>

<P ALIGN="LEFT">by: Crown Resources Corp. of Colorado&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by: Solitario Resources Corporation</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">___________________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ___________________________</P>
<P ALIGN="LEFT">title_____________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; title___________________________</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P></DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>14
<FILENAME>exh104.htm
<TEXT>
<HTML>
<HEAD>
<META NAME="Generator" CONTENT="Microsoft Word 10.0">
<TITLE>FIRST AMENDMENT TO THE MANAGEMENT</TITLE>
<META NAME="Template" CONTENT="C:\Documents and Settings\paula\Application Data\Microsoft\Templates\EDGARizr.dot">
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<P ALIGN="LEFT"></P>
<B><U><P ALIGN="RIGHT">Exhibit 10.4</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">FIRST AMENDMENT TO THE MANAGEMENT</P>
<P ALIGN="CENTER">AND TECHNICAL SERVICES AGREEMENT BETWEEN</P>
<P ALIGN="CENTER">CROWN RESOURCES CORP. OF COLORADO AND </P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION DATED JANUARY 1, 1994</P>
</B><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Dated March 25, 1999</P>
<P ALIGN="CENTER"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">Whereas the Company and Crown Resources Corp. of Colorado (<FONT FACE="WP TypographicSymbols">A</FONT>Crown<FONT FACE="WP TypographicSymbols">@</FONT>) entered into a Management and Technical Services Agreement (the <FONT FACE="WP TypographicSymbols">A</FONT>Agreement<FONT FACE="WP TypographicSymbols">@</FONT>) dated January 1, 1994 which provided that Crown would provided, management, administrative, accounting, treasury, and technical services to Solitario; and  </P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">the Agreement is hereby amended as follows:</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">Paragraph 2 (b) shall be deleted and be replaced by the following:</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>
<DIR>
<DIR>

<P ALIGN="LEFT">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Service Fees</U>. In addition to payment or reimbursement of Costs paid by Crown, Solitario shall pay to Crown service fees as follows:</P><DIR>
<DIR>

<P ALIGN="LEFT">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an operations management fee equal to 2% of the costs paid by Crown on behalf of Solitario and reimbursable to Crown by Solitario pursuant to paragraph 2 (a), and</P>
<P ALIGN="LEFT">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an operations management fee equal to 2% of the costs paid directly by Solitario pursuant to paragraph 2 (a), and</P>
<P ALIGN="LEFT">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario will reimburse Crown an amount equal to one-half of the following costs; salaries and benefits of Denver and Houston personnel, Denver and Houston office rent, insurance, and investor relations meeting expenses (trade shows).  </P>
<P ALIGN="LEFT">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service fees shall be paid monthly in arrears within fifteen (15) days after receipt by Solitario of Crown<FONT FACE="WP TypographicSymbols">=</FONT>s invoice for the same.  Service fee rates shall be subject to review annually and revised by mutual agreement of Crown and Solitario.</P>
<P ALIGN="LEFT"></P></DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>

<P ALIGN="LEFT">Paragraph 11 shall deleted and replaced by the following:</P>
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<P ALIGN="LEFT">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Term and Termination</U>.  This agreement shall commence on April 1, 1999, and shall remain in effect for a term of three (3) years (the <FONT FACE="WP TypographicSymbols">A</FONT>Primary Term<FONT FACE="WP TypographicSymbols">@</FONT>) and shall continue thereafter until terminated on the last day of any month occurring on or after the last of the Primary Term if Solitario or Crown elects to terminate this Agreement and gives at least one hundred eighty (180) days<FONT FACE="WP TypographicSymbols">=</FONT> prior written notice of such termination, specifying the date of such termination, to the other.  Both parties may terminate or modify the agreement by mutual consent at any time.</P>
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<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">Paragraph 13, <U>Notices</U>, is modified to change the addresses of both Crown and Solitario to 1675 Broadway, Suite 2400, Denver, CO 80228, and the phone numbers to (303) 534-1030.</P>
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<P ALIGN="LEFT">All other terms and conditions of the Agreement remain the same.</P>
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<P ALIGN="LEFT">EXECUTED as of the day first written above.</P>
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<P ALIGN="LEFT">by: Crown Resources Corp. of Colorado&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by: Solitario Resources Corporation</P>
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<U><FONT FACE="Courier"><P ALIGN="RIGHT">Exhibit 10.3</P>
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<P ALIGN="CENTER">MANAGEMENT AND</P>
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<P ALIGN="CENTER">TECHNICAL SERVICES AGREEMENT</P>
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<P ALIGN="CENTER">between</P>
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<P ALIGN="CENTER">CROWN RESOURCE CORP. OF COLORADO</P>
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<P ALIGN="CENTER">and</P>
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<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
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<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">dated as of January 1, 1994</P>
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</FONT><FONT FACE="Courier" SIZE=1><P ALIGN="JUSTIFY">j:\home\john\ipo\mgmttech.agr</P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="Courier" SIZE=1>12/11/03 (10:5AM)</P>
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<P ALIGN="CENTER">INDEX</P>
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<U><P ALIGN="JUSTIFY">Section</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Title</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Page</P>
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<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Services&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Personnel&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third Party Services&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reports&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compliance With Law&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and Liabilities&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6</P>
<P ALIGN="JUSTIFY"> &nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Force Majeure&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidentiality&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Opportunities&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term and Termination&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assignment&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notices&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendment&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Waiver&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governing Law&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Headings&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Counterparts&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9</P>
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<P ALIGN="CENTER">MANAGEMENT AND TECHNICAL SERVICES AGREEMENT</P>
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<P ALIGN="JUSTIFY">THIS AGREEMENT&#9;dated as of January 1, 1994, is entered into by and between Crown Resource Corp. of Colorado ("Crown"), a Colorado corporation, and Solitario Resources Corporation ("Solitario"), a Colorado corporation.</P>
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<P ALIGN="CENTER">WITNESSETH:</P>
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<P ALIGN="JUSTIFY">WHEREAS, Solitario carries on business alone and in joint venture with others as an explorer for and developer of mineral deposits including gold; and</P>
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<P ALIGN="JUSTIFY">WHEREAS, Crown carries on business as a provider of management, administrative, financial, accounting, treasury, operations and technical services to mining and exploration companies; and</P>
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<P ALIGN="JUSTIFY">WHEREAS, the parties desire that Crown provide such services to Solitario;</P>
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<P ALIGN="JUSTIFY">NOW, THEREFORE, in consideration of the mutual agreements contained in this Agreement, Crown and Solitario agree as follows:</P>
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<P ALIGN="JUSTIFY">1.  <U>Management Services</U>.  Until terminated in accordance with paragraph 13, Crown shall furnish to Solitario the following services as required by Solitario:</P>
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<P ALIGN="JUSTIFY">(a)  General executive services, including without limitation periodic advice and consultation with respect to, and subject to the policies and supervision of the Board of Directors of Solitario (the "Board") general management of, the affairs of Solitario, as more specifically described in paragraph 3;</P>
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<P ALIGN="JUSTIFY">(b)  Business planning and development services, including without limitation assistance in the economic and technical evaluation, acquisition and disposition of assets;</P>
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<P ALIGN="JUSTIFY">(c)  Accounting and financial services, including without limitation (i) general accounting (payroll, invoicing, accounts payable, maintenance of general and subsidiary ledgers and journals, and preparation of related reports);  (ii) government accounting (preparation of federal, state, and local government reports);  (iii) coordination of external audits;  (iv) performance of internal audits;  (v) advice on application of generally accepted accounting principles and financial accounting standards;  (vi) performance of treasury functions (cash management and debt/equity financing);  and (vii) financial planning and budgeting;</P>
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<P ALIGN="JUSTIFY">(d)  Operations services, including without limitation the management or operation or both of Solitario's mines to be developed or acquired, including mine development, engineering, geological control and definition, mining, beneficiation, waste deposition, maintenance and required reclamation;</P>
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<P ALIGN="JUSTIFY">(e)  Exploration and development services, including without limitation general and specific literature reviews, geological, geochemical and geophysical reconnaissance and surveys, geostatistical analysis, negotiation for and acquisition of property rights, drilling and sampling programs, sample analysis and evaluation, geological mapping and other related services;</P>
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<P ALIGN="JUSTIFY">(f)  Marketing services, including without limitation negotiation of refining agreements and sales agreements, administration of all commercial agreements, including shipping, invoicing and settlements, and the development and implementation of pricing and hedging strategies;</P>
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<P ALIGN="JUSTIFY">(g)  Contract management services, including without limitation contract negotiation and engineering, technical and financial control for engineering, design, construction and operating contracts;</P>
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<P ALIGN="JUSTIFY">(h)  Environmental services, including without limitation such services as are necessary or desirable to assist Solitario in complying with all applicable environmental laws and regulations, including the preparation, and, subject to the approval of Solitario, submittal to regulatory agencies of all necessary applications and reports;</P>
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<P ALIGN="JUSTIFY">(i)  Property management services, including without limitation the maintenance of mining claims and filing of notices required under local, state, provincial and national laws and regulations, and calculation and payment (at Solitario's cost) of applicable rental and royalty payments, for those properties designated by Solitario.</P>
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<P ALIGN="JUSTIFY">(j)  Legal and tax services, including without limitation regular and periodic advice and consultation with respect to legal and tax matters related to Solitario, the preparation and filing of, and assistance with respect to, federal, provincial, state and local income, property, excise, franchise and other tax returns and reports to securities exchanges and other governmental agencies, negotiation, preparation and review of contracts, leases and other legal instruments, the management of the defense or prosecution of litigation and of other legal services furnished by independent counsel, and making recommendations with respect thereto; provided, however that the fees and expenses of any such independent counsel shall remain the expense of Solitario;</P>
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<P ALIGN="JUSTIFY">(k)  Human resources services, including without limitation advisory and administration services relating to employee relations, compensation programs, employee benefit programs, corporate policies and other personnel and industrial relations matters;</P>
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<P ALIGN="JUSTIFY">(l)  Insurance services, including without limitation risk assessment and management, evaluation of optimum coverage, evaluation of and negotiation with insurance brokers, carriers and underwriters, and processing and administration of insurance claims;</P>
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<P ALIGN="JUSTIFY">(m)  Loss prevention services, including without limitation advisory services on health and safety and property risk management;</P>
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<P ALIGN="JUSTIFY">(n)  Public relations services, including without limitation contacts with various news and trade publication media;</P>
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<P ALIGN="JUSTIFY">(o)  Governmental relations services including without limitation presenting Solitario's positions to members of the legislative and executive branches of local, state, regional and national governments, and participation in Solitario's name in selected trade organizations;</P>
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<P ALIGN="JUSTIFY">(p)  Corporate Secretary services, including without limitation maintenance of corporate stock records, assistance in convening meetings of directors and shareholders and preparing the minutes of such meetings, and other services normally associated with this function;</P>
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<P ALIGN="JUSTIFY">(q)  Research, development and evaluation services pertaining to equipment, processes and techniques related to mining, extractive metallurgy, minerals exploration and evaluation, environmental control and protection, and health and safety;</P>
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<P ALIGN="JUSTIFY">(r)  General and administrative services, including without limitation office facilities management, telecommunica-tions, transportation coordination, library services, data processing and records management; and</P>
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<P ALIGN="JUSTIFY">(s)  Such other services as may be required by Solitario and which Crown is able and willing to provide.</P>
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<P ALIGN="JUSTIFY">2.  <U>Compensation</U>.</P>
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<P ALIGN="JUSTIFY">(a)  <U>Cost Reimbursement</U>.  Crown shall keep or cause to be kept complete and accurate records in accordance with generally accepted accounting principles of all costs and expenses incurred by Crown or by Solitario in the performance of Crown's obligations under this Agreement ("Costs").  All such records shall be kept so as to be readily susceptible to standard auditing tests.  "Costs" </P>
<P ALIGN="JUSTIFY">shall include without limitation all direct costs and expenses incurred by Crown in the performance of such obligations and fully allocated indirect costs and expenses, including salaries and benefits of Crown personnel providing services to Solitario under this Agreement, based on such reasonable policies and procedures for allocation as may be agreed on by Crown and Solitario, or in the absence of such agreement as may be proposed by Crown and accepted by (Crown's) independent certified public accountants.  Solitario shall reimburse Crown all Costs within fifteen (15) days after receipt of Crown's invoice for the same in such detail as reasonably may be requested by Solitario.  Invoices shall generally be prepared in accordance with a schedule of accounts agreed between Crown and Solitario.  </P>
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<P ALIGN="JUSTIFY">(b)  <U>Service Fees</U>.  In addition to payment or reimbursement of Costs paid by Crown, Solitario shall pay to Crown service fees as follows:</P>
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<P ALIGN="JUSTIFY">(1)&nbsp;&nbsp;an operations management fee equal to 7.5% of the costs paid by Crown on behalf of Solitario and reimbursable to Crown by Solitario pursuant to paragraph 2(a), and</P>
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<P ALIGN="JUSTIFY">(2)&nbsp;&nbsp;an operations management fee equal to 7.5% of the costs paid directly by Solitario pursuant to paragaraph 2(a).</P>
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<P ALIGN="JUSTIFY">Service fees shall be paid monthly in arrears within fifteen (15) days after receipt by Solitario of Crown's invoice for the same.  Service fee rates shall be subject to review annually and revised by mutual agreement by Crown and Solitario.</P>
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<P ALIGN="JUSTIFY">(c)  <U>General</U>.</P>
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<P ALIGN="JUSTIFY">(1)&#9;Crown shall have free access at all times to all records and information of Solitario for the purpose of calculating the service fees payable from time to time.</P>
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<P ALIGN="JUSTIFY">(2)&#9;Solitario may set off against monies payable to Crown any sums which are due to Solitario by Crown under this Agreement.</P>
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<P ALIGN="JUSTIFY">(3)&#9;Either party may, at its sole expense, cause an audit of the books and records of the other by a nationally recognized firm of independent certified public accountants upon at least thirty (30) days prior written notice to the other party.  Such audit shall be conducted in accordance with generally accepted auditing practices and standards.  The full audit report shall be furnished to both parties simultaneously.</P>
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<P ALIGN="JUSTIFY">(4)&#9;The Board or its duly authorized agent shall have full and free access to all books and records maintained by Crown for or on behalf of or in respect of the business and operations of Solitario at the place where the same are customarily kept at all times during normal business hours of Crown and may copy the same.</P>
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<P ALIGN="JUSTIFY">3.  <U>Executive Personnel</U>.  The general executive services described in paragraph 1(a) include providing personnel with suitable qualifications and experience who will serve as officers of Solitario.  The number and title of such officer positions shall be determined by Solitario.  All such executives provided under this Agreement will remain employees of Crown and will be eligible to participate in all benefit and bonus plans and programs of Crown.  Subject to approval by Solitario and regulatory authorities, executives provided under this Agreement may be eligible to participate in certain benefit plans of Solitario.  Subject to approval by Solitario, Crown may add or delete the officer positions it will fill with Crown employees and may change the personnel serving in such positions.  Compensation for the services of such personnel will be paid by Solitario in accordance with the provisions of paragraph 2(a).</P>
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<P ALIGN="JUSTIFY">4.  <U>Third Party Services</U>.  Crown will not be obligated to provide or pay for services which in Crown's reasonable judgement are customarily and more effectively performed by third parties, such as law firms, engineering firms, consultants, and independent accountants.  Crown may contract for such services on behalf of Solitario and the costs of such services may be charged directly to and in such case shall be paid by Solitario.  All material contracts shall be subject to the approval of the Board or of such approval authority as may from time to time be designated by the Board.</P>
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<P ALIGN="JUSTIFY">5.  <U>Reports</U>.  Crown shall prepare and deliver to the Board such reports and other information in such form and format as reasonably requested by the Board.  Such reports may be established on a regular schedule or as requested from time to time or both.</P>
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<P ALIGN="JUSTIFY">6.  <U>Compliance With Law</U>.  Crown shall comply, and use its best efforts to ensure compliance by all of its employees, agents and contractors, with all applicable laws, statutes, rules, regulations, orders, and permit and license terms and conditions of all federal, state or provincial, and local governments and governmental agencies, and all applicable orders of courts and administrative tribunals of competent jurisdiction, affecting Crown or the business and operations of Solitario managed by Crown (collectively "Applicable Law").</P>
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<P ALIGN="JUSTIFY">7.  <U>Losses and Liabilities</U>.</P>
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<P ALIGN="JUSTIFY">(a)  Neither party (the "first party") shall be liable to the other party (the "second party") for any losses or liabilities sustained or incurred by the second party, except such losses and liabilities as may result from the first party's gross negligence or willful misconduct or from the willful and intentional breach by the first party of one or more of the provisions of this Agreement, and then only to the extent that such losses and liabilities are not covered by the second party's insurance.</P>
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<P ALIGN="JUSTIFY">Under no circumstances shall either party be liable to the other for indirect or consequential damages.</P>
<P ALIGN="JUSTIFY">(b)  Notwithstanding paragraph 7(a), Solitario hereby indemnifies and agrees to hold Crown harmless from and against any and all claims, demands, suits, actions, losses, damages and liability of whatsoever nature arising directly or indirectly out of the performance or purported performance of services or other obligations under this Agreement by Crown or its employees, agents or contractors, except only as and to the extent the same arise directly from the gross negligence or willful misconduct of or the willful and intentional breach of this Agreement by Crown or its employees or agents.</P>
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<P ALIGN="JUSTIFY">(c)  Each party shall cause its relevant insurance policies to be endorsed to waive all rights of subrogation against the other party with respect to any act or omission or loss done, omitted or arising directly or indirectly from the performance or purported performance of any service or obligation by either party or its employees, agents or contractors under this Agreement.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">8.  <U>Force Majeure</U>.  If Crown is unable, wholly or in part, by reason of any occurrence beyond the reasonable control of Crown, to carry out any obligation under this Agreement, the performance of such obligation, to the extent and during the time that it is so affected, shall be suspended.  Crown shall notify Solitario promptly of such circumstances and exercise due diligence in attempting to perform its obligations.  Fees under this Agreement shall be reduced proportionally to reflect the non-performance of those services suspended under this provision.  Crown shall use its best efforts to reinstate the services suspended under this provision as soon as practicable and to mitigate the adverse effects on Solitario of such suspension.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">9.  <U>Confidentiality</U>.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(a)  Neither Crown nor Solitario shall, without the prior written consent of the other party, disclose, directly or indirectly, to any third party any information acquired or developed pursuant to performance of this Agreement, except as provided in paragraph 9(b).</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(b)  The consent required by paragraph 9(a) shall not apply to the following disclosures, provided that in each case the disclosing party shall use its reasonable best efforts to preserve the confidentiality of such information against further disclosures:</P>
<P ALIGN="JUSTIFY"></P><DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>

<P ALIGN="JUSTIFY">(1)&#9;Information disclosed in response to require- ments of any court, governmental agency or other authority of competent jurisdiction; or</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(2)&#9;Information disclosed as necessary for debt or equity financing purposes; or</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(3)&#9;Information disclosed to consultants and other third parties as necessary to carry out the purposes of this Agreement. </P></DIR>
</DIR>
</DIR>
</DIR>
</DIR>
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</DIR>

<P ALIGN="JUSTIFY">10.  <U>Other Opportunities</U>.  Except as expressly provided in this Agreement, each party shall have the free and unrestricted right independently to engage in and receive the full benefits of any and all business endeavors of any kind whatsoever, whether or not competitive with the endeavors contemplated in this Agreement, without consulting the other or inviting or allowing the other to participate in such endeavors.  The legal doctrine of "corporate opportunity" or "business opportunity" sometimes applied to persons participating in a joint venture or having a fiduciary status shall not apply in the case of any other endeavors of the parties to this Agreement.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">11.  <U>Term and Termination</U>.  This Agreement shall commence on  January 1, 1994 and remain in effect for a term of three (3) years (the "Primary Term") and shall continue thereafter until terminated in accordance with this paragraph.  This Agreement shall terminate on the last day of any month occurring on or after the last day of the Primary Term if Solitario or Crown elects to terminate this Agreement and gives at least one hundred eighty (180) days' prior written notice of such termination, specifying the date of such termination, to the other.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">12.  <U>Assignment</U>.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">This Agreement shall not be assigned in whole or in part by either party without the prior written consent of the other party; provided that this paragraph shall not preclude or restrict Crown from engaging such contractors (subject to the applicable provisions of this Agreement) as it deems necessary or prudent to perform in whole or in part any of the services required to be provided by Crown under this Agreement.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">13.  <U>Notices</U>.  All notices and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed given when actually delivered to an officer of the addressee party; or five (5) days after being deposited in the </P>
<P ALIGN="JUSTIFY">official mail system of the country of the party giving such notice or other communication, postage pre-paid for air mail delivery, addressed to the addressee party as provided below; or when given by telex to the addressee party telex number given below and the answerback given below is received; or when given by facsimile transmission to the addressee party facsimile number given below and written confirmation of satisfactorily completed transmission is received.  The addresses of the parties for purposes of this paragraph 13 are as follows, and either party may change its address, telex number, answerback or facsimile number by notice given to the other party pursuant to this paragraph 13:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Crown:&#9;Crown Resource Corp. of Colorado</P>
<P ALIGN="JUSTIFY">1225 17th Street, Suite 1500</P>
<P ALIGN="JUSTIFY">Denver, Colorado  80202 U.S.A.</P>
<P ALIGN="JUSTIFY">Attn:  President</P>
<P ALIGN="JUSTIFY">Facsimile No.  (303) 295-2249</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY"> Solitario:&#9;Solitario Resources Corporation</P>
<P ALIGN="JUSTIFY">1225 17th Street, Suite 1500</P>
<P ALIGN="JUSTIFY">Denver, Colorado  80202 U.S.A.</P>
<P ALIGN="JUSTIFY">Attn:  President</P>
<P ALIGN="JUSTIFY">Facsimile No.  (303) 295-2249</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">14.  <U>Amendment</U>.  This Agreement may not be amended except by a written instrument signed by both parties.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">15.  <U>Waiver</U>.  Any delay or omission or failure to exercise any right or remedy provided in this Agreement shall not constitute a waiver of any provision of this Agreement and shall not limit any party's right thereafter to enforce any provision or exercise any right.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">16.  <U>Governing Law</U>.  This Agreement shall be deemed to have been made in and shall be governed by and construed in accordance with the laws of the State of Colorado, U.S.A.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">17.  <U>Headings</U>.  The underlined headings of paragraphs in this Agreement are included for convenience only and are not a part of this Agreement.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">18.  <U>Counterparts</U>.  This Agreement may be executed in several counterparts, each of which when so executed shall be deemed to be an original, and such counterparts together shall constitute but one and the same agreement.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">EXECUTED as of the day first written above.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&#9;"Crown"                          </P>
<P ALIGN="JUSTIFY">  </P>
<P ALIGN="JUSTIFY">&#9;CROWN RESOURCE CORP. OF COLORADO</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&#9;By<U>                              </P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&#9;Title<U>                           </P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
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<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&#9;"Solitario"                      </P>
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<P ALIGN="JUSTIFY">&#9;SOLITARIO RESOURCES CORPORATION </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&#9;By<U>                              </P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&#9;Title<U>                           </P>
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<U><FONT FACE="CG Times"><P ALIGN="RIGHT">Exhibit 10.2</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">1994 STOCK OPTION PLAN</P>
<P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Purpose</U>.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="CG Times" SIZE=2><P ALIGN="JUSTIFY">The purpose of this 1994 Stock Option Plan (the "Plan"), as amended, is to enable Solitario Resources Corporation (the "Company") to attract and retain the services and advice of current and future employees, officers, directors, agents, consultants, and providers of services to the Company including independent contractors, of the Company, its parent corporations, subsidiaries, and other related corporations and to provide additional incentives to them to exert their best efforts for the Company and its shareholders.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stock Subject to This Plan</U>.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="CG Times" SIZE=2><P ALIGN="JUSTIFY">Subject to adjustment as provided below and in Section&nbsp;7 hereof, the stock to be offered under this Plan shall consist of shares of the Company's common stock, $.01 par value (the "Common Stock").  The number of shares of Common Stock that may be subject to options granted under this Plan shall not exceed 1,100,000 shares of Common Stock, as such Common Stock was constituted on the effective date of this Plan, or such greater number as may be approved from time to time by the shareholders of the Company.  If an option granted under this Plan expires or terminates for any reason without having been exercised in full, the unissued shares subject thereto shall thereupon again be available for grants of options under this Plan.  Shares issued upon exercise of options granted under this Plan may be subject to such restrictions on transfer, repurchase rights, or other restrictions as may be determined by the Plan Administrator.  All shares of Common Stock
 issued pursuant to the due exercise of options granted under the Plan will, when so issued, be validly issued, fully paid and non-assessable.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effective Date and Duration of This Plan</U>.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effective Date</U>.  </FONT><FONT FACE="CG Times" SIZE=2>This Plan shall become effective when adopted by the Board of Directors of the Company (the "Board") so long as it is approved by the Company's shareholders any time within twelve months after the adoption of this Plan.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Duration</U>.</FONT><FONT FACE="CG Times" SIZE=2>  This Plan shall continue in effect until ten years from the date on which this Plan is adopted by the Board, unless sooner terminated by the Board.  No option may be granted after such termination or during any suspension of this Plan. The amendment or termination of this Plan shall not, without the consent of the Optionee, alter or impair any rights or obligations under any option theretofore granted under this Plan.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Administration</U>.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="CG Times" SIZE=2><P ALIGN="JUSTIFY">This Plan shall be administered by the Board or, in the event the Board shall authorize a committee to administer this Plan, by such committee to the extent so authorized, provided, however, that only the Board of Directors may suspend, amend, or terminate this Plan as provided in Section&nbsp;9, and that a committee that includes officers of the Company shall not be permitted to grant options to persons who are officers of the Company.  The administrator of this Plan is referred to as the "Plan Administrator."</P>
</FONT><FONT FACE="CG Times" SIZE=3><P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Procedures</U>.  </FONT><FONT FACE="CG Times" SIZE=2>The Board of Directors shall designate one of the members of the Plan Administrator as chairman.  The Plan Administrator may hold meetings at such times and places as it shall determine. The acts of a majority of the members of the Plan Administrator present at meetings at which a quorum exists, or acts approved in writing by all Plan Administrator members, shall constitute valid acts of the Plan Administrator.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Powers</U>.</FONT><FONT FACE="CG Times" SIZE=2>  Subject to the specific provisions of this Plan and to all required regulatory and stock exchange approvals, the Plan Administrator shall have the authority, in its discretion:  (a) to grant the stock options described in Section&nbsp;6, including Incentive Stock Options and Non-Qualified Stock Options, and to designate each option granted as an Incentive Stock Option or a Non-Qualified Stock Option; (b) to determine, in accordance with Section 6.1(f) of this Plan, the fair market value of the shares of Common Stock subject to options; (c) to determine the exercise price per share of options; (d) to determine the parties to whom, and the time or times at which, options shall be granted and the number of shares of Common Stock to be represented by each option; (e) to interpret this Plan; (f) to adopt, amend, and rescind rules
 and regulations relating to this Plan; (g) to determine the terms and provisions of each option granted (which need not be identical) and, with the consent of the holder thereof, to modify or amend each option; (h) to reduce the exercise price per share of outstanding and unexercised options; (i) to defer, with the consent of the Optionee, or to accelerate the exercise date of any option; (j) to waive or modify any term or provision contained in any option applicable to the underlying shares of Common Stock; (k) to authorize any person to execute on behalf of the Company any instrument required to effectuate the grant of an option previously granted by the Plan Administrator; and (l) to make all other determinations deemed necessary or advisable for the administration of this Plan.  The interpretation and construction by the Plan Administrator of any terms or provisions of this Plan, any option issued hereunder or of any rule or regulation promulgated in connection herewith and all actions taken by the Plan
 Administrator shall be conclusive and binding on all interested parties.  The Plan Administrator may delegate administrative functions to individuals who are officers or employees of the Company or a related corporation.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Limited Liability</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="CG Times" SIZE=2> No member of the Board of Directors or the Plan Administrator, or officer of the Company or any related corporation shall be liable for any action or inaction of the entity or body, or another person or, except in circumstances involving bad faith, of himself or herself.  Subject only to compliance with the explicit provisions hereof, the Board of Directors and Plan Administrator may act in their absolute discretion in all matters related to this Plan.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Securities Exchange Act of 1934</U>.  </FONT><FONT FACE="CG Times" SIZE=2>At any time that the Company has a class of securities registered pursuant to Section&nbsp;12 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), this Plan shall be administered by the Plan Administrator in accordance with Rule 16b-3 adopted under the Exchange Act, as such rule may be amended from time to time.  With respect to persons subject to Section 16 of the Exchange Act, transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the 1934 Act.  To the extent any provision of the Plan or action by the Plan Administrator fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Plan Administrator.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Eligibility</U>.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Optionees</U>.  </FONT><FONT FACE="CG Times" SIZE=2>The Plan Administrator may award options to any former, current or future director, employee, officer, agent, consultant or provider of service to the Company, its parent corporations, any subsidiaries, or any related corporation of the Company.  Any party to whom an option is granted under this Plan is referred to as an "Optionee." The total number of shares of Common Stock that may be granted to any single Optionee shall not exceed five percent (5%) of the number of issued and outstanding shares of Common Stock (on a non-fully diluted basis) at the time the option is granted.  In addition, options may not be granted that could result in:</P>
<P ALIGN="JUSTIFY">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The issuance to Insiders (as "Insider" is defined in the Securities Act (Ontario), other than a person who falls within that definition solely by virtue of being a director or senior officer of a subsidiary of the Company) and Associates of Insiders (as "Associate" is defined in the Securities Act (Ontario)), within a one-year period, of a number of shares of Common Stock exceeding 10% of the Outstanding Issue (as hereinafter defined); or</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The issuance to any one Insider and such Insider's Associates, within a one-year period, of a number of shares of Common Stock exceeding 5% of the Outstanding Issue (as hereinafter defined).</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">"Outstanding Issue" means the issued and outstanding shares of Common Stock, excluding shares of Common Stock issued pursuant to a stock option, stock option plan, employee stock purchase plan or any other compensation or incentive mechanism involving the issuance or potential issuance of shares of Common Stock to one or more providers of services to the Company, including a share purchase from treasury which is financially assisted by the Company by way of a loan, guarantee or otherwise, over the preceding one-year period.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Parent, Subsidiaries, and Other Related Corporations</U></FONT><FONT FACE="CG Times" SIZE=2>.  For purposes of this Plan, a parent shall be defined as any corporation or other form of business association that is treated as a corporation for tax purposes owning or controlling, directly or indirectly, 50% or more of the voting power of the Shares of the Company so as to qualify as a "parent" corporation within the meaning of Section 424(e) of the Internal Revenue Code (the "Code").  As used in this Plan, the term "subsidiary" of the Company shall include any corporation or other form of business association that is treated as a corporation for tax purposes, in which the Company owns, directly or indirectly, at the time of the grant of an option hereunder, stock possessing 50% or more of the total combined voting power of all classes of the stock thereof, and the term "relat
ed corporation" shall include (i) the Company's parent; (ii)&nbsp;all subsidiaries of the Company, and (iii) any other corporation that is under the common control of the Company and any subsidiary of such corporation.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Awards</U>.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="CG Times" SIZE=2><P ALIGN="JUSTIFY">The Plan Administrator, from time to time, may take the following actions, separately or in combination, under this Plan:  (a) grant Incentive Stock Options, as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), to any employee of the Company, its parent corporations or its subsidiaries, as provided in Section 6.1 of this Plan; (b) grant options other than Incentive Stock Options ("Non-Qualified Stock Options"), as provided in Section 6.2 of this Plan; (c) grant options to officers, employees, and others in foreign jurisdictions, as provided in Section 6.7 of this Plan;  and (d) grant options in certain acquisition transactions, as provided in Section 6.8 of this Plan.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Incentive Stock Options</U></FONT><FONT FACE="CG Times" SIZE=2>.  Incentive Stock Options shall be subject to the following terms and conditions:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incentive Stock Options may be granted under this Plan only to employees of the Company or its subsidiaries, including employees who are directors or officers.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No employee may be granted Incentive Stock Options under this Plan to the extent that the aggregate fair market value, on the date of grant, of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by that employee during any calendar year, under this Plan and under any other incentive stock option plan (within the meaning of Section 422 of the Code) of the Company or any related corporation exceeds U.S. $100,000.  To the extent that any option designated as an Incentive Stock Option exceeds the U.S. $100,000 limit, such option shall be treated as a Non-Qualified Stock Option.  In making this determination, options shall be taken into account in the order in which they were granted, and the fair market value of the shares of Common Stock shall be determined as of the time that the option with respect to such shares was granted.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(c)&#9;An Incentive Stock Option may be granted under this Plan to an employee possessing more than 10% of the total combined voting power of all classes of stock of the Company or of any parent or subsidiary of the Company (as determined pursuant to the attribution rules contained in Section 424(d) of the Code) only if the exercise price is at least 110% of the fair market value of the Common Stock subject to the option on the date the option is granted, as defined in Section 6.1(f) of this Plan, and only if the option by its terms is not exercisable after the expiration of five years from the date it is granted.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as provided in Section 6.5 of this Plan, no Incentive Stock Option granted under this Plan may be exercised unless at the time of such exercise the Optionee is employed by the Company or any related corporation of the Company and the Optionee has been so employed continuously since the date such option was granted.  Absence on leave or on account of illness or disability under rules established by the Plan Administrator shall not, however, be deemed an interruption of employment for this purpose.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to Sections 6.1(c) and 6.1(d) of this Plan, Incentive Stock Options granted under this Plan shall continue in effect for the period fixed by the Plan Administrator, except that no Incentive Stock Option shall be exercisable after the expiration of 10 years from the date it is granted.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise price shall not be less than the fair market value of the shares of Common Stock covered by the Incentive Stock Option on the date the option is granted.  The fair market value of shares shall be the weighted average closing price (or, if such price is not available, the last sales price) per share of the Common Stock for the five business days immediately preceding the date of grant as reported on the principal securities quotation system or stock exchange on which the shares are reported.  If such shares are not so reported or listed, the Plan Administrator shall determine the fair market value of the shares of Common Stock in its discretion.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of clauses (b) and (c) of this Section shall not apply if either the applicable sections of the Code or the regulations thereunder are amended so as to change or eliminate such limitations or to permit appropriate modifications of those requirements by the Plan Administrator.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-Qualified Stock Options</U></FONT><FONT FACE="CG Times" SIZE=2>.  Non-Qualified Stock Options shall be subject to the following terms and conditions:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The option price per share shall be determined by the Plan Administrator at the time of grant.  The exercise price shall not be less than the fair market value of the shares of Common Stock covered by the Non-Qualified Stock Option on the date the option is granted.  The fair market value of shares of Common Stock covered by a Non-Qualified Stock Option shall be determined by the Plan Administrator, as described in Section 6.1(f).</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any Non-Qualified Stock Option shall terminate 10&nbsp;years after the date it is granted.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Vesting</U></FONT><FONT FACE="CG Times" SIZE=2>.  To ensure that the Company will achieve the purposes of and receive the benefits contemplated in this Plan, any option granted to any Optionee hereunder shall be exercisable according to the following vesting schedule, except that the Plan Administrator may waive this vesting schedule, establish a different vesting schedule or provide for no vesting schedule for such options as it determines; and (ii)&nbsp;in the event of the death or disability, as defined herein, of an Optionee while employed by the Company or a related corporation, one hundred percent (100%) of the total option shall immediately become exercisable.  With respect to the options subject to this Section, one-fourth of each option shall be exercisable from and after the date of grant, and the remainder shall become exercisable as follows:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Years of Continuous</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service From the Date&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Portion of Total Option</P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>the Option Is Granted  </U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>That is Exercisable</P>
</U><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;More than one year&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One-half</P>
<P ALIGN="JUSTIFY">More than two years&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three-quarters</P>
<P ALIGN="JUSTIFY">More than three years&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entire option</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Nontransferability</U>.</FONT><FONT FACE="CG Times" SIZE=2>  Each option granted under this Plan by its terms and the rights and privileges conferred hereby may not be transferred, assigned, pledged, or hypothecated in any manner (either voluntarily or by operation of law) except by will or by the laws of descent and distribution, shall not be subject to execution, attachment, or similar process and shall be exercisable during the Optionee's lifetime only by the Optionee.  Any purported transfer or assignment in violation of this provision shall be void.  Stock issued on exercise of an option may have, in addition to restrictions on transfer imposed by law, any restrictions on transfer imposed by the Board of Directors.</P>
<P ALIGN="JUSTIFY"></P><DIR>
<DIR>

</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>6.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination of Stock Options</U>.</P>
</FONT><FONT FACE="CG Times" SIZE=2><P ALIGN="JUSTIFY"></P></DIR>
</DIR>

</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=2>6.5.1&nbsp;&nbsp;<U>Generally</U>.  In the case of an Optionee who is an employee, but not an officer or director of the Company or a related corporation, unless otherwise determined by the Plan Administrator or specified in the Optionee's Option Agreement, if the Optionee's employment or service with the Company or any related corporation terminates for any reason other than for disability or death, then the Optionee may exercise, at any time prior to its expiration or to the end of a ninety-day period starting on the date of termination, whichever is shorter, that portion of the Optionee's stock option that was exercisable at the time of such termination of employment or service (provided the conditions of Section 6.6.4 and any other conditions specified in the Option Agreement shall have been met by the date of exercise of such option).</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=2>6.5.2&nbsp;&nbsp;<U>Disability</U>.  In the case of an Optionee who is an employee, unless otherwise determined by the Plan Administrator, if an Optionee's employment or relationship with the Company or any related corporation terminates because of a permanent and total disability (as defined in Section 22(e)(3) of the Code), the option, including portions not yet exercisable, may be exercised at any time prior to the earlier of (a) expiration date of the option or (b) the expiration of twelve months after the date of physical disability (provided the conditions of Section 6.6.4 and any other conditions specified in the Option Agreement shall have been met by the date of exercise of such option).</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=2>6.5.3&nbsp;&nbsp;<U>Death</U>.  In the case of an Optionee who is an employee, unless otherwise determined by the Plan Administrator, in the event of the death of an Optionee while employed by or providing service to the Company or a related corporation, the option may be exercised at any time prior to the earlier of (a) the expiration date of the option or (b) the expiration of twelve months after the date of death by the person or persons to whom such Optionee's rights under the option shall pass by the Optionee's will or by the applicable laws of descent and distribution, for up to the full number of shares of Common Stock covered thereby, including any portion not yet vested (provided the conditions of Section 6.6.4. and any other conditions specified in the Option Agreement shall have been met by the date of exercise of such option).</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=2>6.5.4&nbsp;&nbsp;<U>Extension of Exercise Period Applicable to Termination</U>.  Subject to all required regulatory and stock exchange approvals, the Plan Administrator, at the time of grant or at any time thereafter, may extend the ninety-day and twelve-month exercise periods to any length of time not longer than the original expiration date of the option, and may increase the portion of an option that is exercisable, subject to such terms and conditions as the Plan Administrator may determine; provided, that any extension of the exercise period or other modification of a stock option shall be subject to the written agreement and acknowledgement by the Optionee that the extension or modification disqualifies the option as an Incentive Stock Option.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=2>6.5.5&nbsp;&nbsp;<U>Failure to Exercise Option</U>.  To the extent that the option of any deceased employee Optionee or of any Optionee whose employment terminates is not exercised within the limited periods provided above, all further rights to purchase shares of Common Stock pursuant to such options shall cease and terminate at the end of such period.</P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=2>6.5.6&nbsp;&nbsp;<U>Transfers; Leaves</U>.  For purposes of this Section 6.5, a transfer of employment or other relationship between or among the Company and/or any related corporation shall not be deemed to constitute a termination of employment or other cessation of relationship with the Company or any of its related corporations.  For purposes of this Section 6.5, employment shall be deemed to continue while the Optionee is on military leave, sick leave, or other bona fide leave of absence (as determined by the Plan Administrator) in accordance with the policies of the Company.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>6.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exercise</U>.</P>
</FONT><FONT FACE="CG Times" SIZE=2><P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=2>6.6.1&nbsp;&nbsp;<U>Procedure</U>.  Subject to the provisions of Section 6.3 above, each option may be exercised in whole or in part; provided, however, that options shall not be exercised for fractional shares.  Options shall be exercised by delivery to the Secretary of the Company or his or her designated agent of notice of the number of shares with respect to which the option is exercised, together with payment in full of the exercise price.  In addition, unless in the opinion of counsel for the Company such a representation is not required to comply with the Securities Act of 1933, as amended, such notice shall contain a representation that it is the optionee's present intention to acquire the shares for investment and not with a view to distribution.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=2>6.6.2&nbsp;&nbsp;<U>Payment</U>.  Payment of the option exercise price shall be made in full at the time the notice of exercise of the option is delivered to the Secretary of the Company or his or her designated agent and shall be (i)&nbsp;in cash or bank certified or cashier's check for the shares of Common Stock being purchased; (ii) in shares of Common Stock of the Company previously acquired and held for not less than one year by the Optionee, or, with the consent of the Plan Administrator, in whole or in part in shares of Common Stock of the Company previously acquired and held for less than one year by the Optionee; (iii) with the consent of the Plan Administrator, by delivering a notice of exercise to a broker-dealer pursuant to an arrangement with the Company to have the broker-dealer sell the shares of Common Stock of the Company and deliver the proceeds thereof to the Company in payment of the option exercise;
 (iv) in a combination of (i), (ii), or (iii); or (v) in such other forms of payment of full value of the exercise price as the Board approves.  Any shares surrendered on payment for the exercise of options shall be valued at fair market value as determined by the Board. No shares shall be issued until full payment therefor has been made.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=2>6.6.3&nbsp;&nbsp;<U>Withholding</U>.  Prior to the issuance of shares of Common Stock upon the exercise of an option, the Optionee shall pay to the Company or the applicable related corporation the amount of any applicable federal, state, and local tax withholding obligations.  The Company may withhold any distribution in whole or in part until the Company or such related corporation is so paid.  The Company shall have the right to withhold such amount from any other amounts due or to become due from the Company or such related corporation, as the case may be, to the Optionee, including salary (subject to applicable law) or to retain and withhold a number of shares having a market value not less than the amount of such taxes required to be withheld by the Company or such related corporation to reimburse it for any such taxes and cancel (in whole or in part) any such shares so withheld.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=2>6.6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions Precedent to Exercise</U>.  The Plan Administrator may establish conditions precedent to the exercise of any option, which shall be described in the relevant Option Agreement.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>6.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Foreign Qualified Grants</U>.</FONT><FONT FACE="CG Times" SIZE=2>  Options under this Plan may be granted to directors, officers and employees of the Company and its related corporations and other persons described in Section&nbsp;5 who reside in foreign jurisdictions as the Plan Administrator may determine from time to time.  Subject to all required regulatory and stock exchange approval, the Board may adopt such supplements to the Plan as are necessary to comply with the applicable laws of such foreign jurisdictions and to afford Optionees favorable treatment under such laws; provided, however, that no award shall be granted under any such supplement on terms that are more beneficial to such Optionees than the terms permitted by this Plan.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>6.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustments to Options</U>.</P>
</FONT><FONT FACE="CG Times" SIZE=2><P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=2>6.8.1&#9;Except with respect to a transaction described in Section 6.9, which shall be solely subject to such Section, upon the effective date of the dissolution or liquidation of the Company, or of a reorganization, merger, or consolidation of the Company with one or more corporations that results in more than 80% of the outstanding voting shares of the Company being owned by one or more affiliated corporations or other affiliated entities, or of a transfer of all or substantially all of the assets of the Company to another Corporation, this Plan and any unexercised options granted hereunder shall terminate unless provision is made in writing in connection with such transaction for the continuation of the Plan and for the assumption of options and other rights theretofore granted, or for the substitution for such options of new options covering the shares of a successor corporation, or a parent or subsidiary thereof, w
ith appropriate adjustments as to number and kind of shares and prices, in which event the Plan and the options granted under it shall continue in the manner and under the terms so provided.  In the event of such a transaction, and if provision is not made in such a transaction for the continuation of the Plan and for the assumption of options  or substitutions therefor of new options covering the shares of a successor corporation or a parent or subsidiary thereof, then each Optionee shall be entitled, before the effective date of any such transaction, to purchase the full number of shares under his or her option that he or she would otherwise have been entitled to purchase during the remaining term of such option without regard to any limitation on exercise that may be contained therein.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">If the outstanding shares of Common Stock are increased or decreased (other than through a stock dividend of less than ten percent) or changed into or exchanged for a different number or kind of securities through recapitalization, reclassification, stock split, amendment of the Company's Articles of Incorporation, or reverse stock split, an appropriate and proportionate adjustment shall be made in the maximum number and/or kind of securities allocated to the options with a corresponding adjustment in the price for each share covered thereby.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Adjustments under this Section 6.8 shall be made by the Board, whose determination shall be final.  Unless an Optionee agrees otherwise, any change or adjustment to an Incentive Stock Option shall be made, if possible, in such a manner so as not to constitute a "modification," as defined in Section 424(h) of the Code, and so as not to cause the Optionee's Incentive Stock Option to fail to continue to qualify as an Incentive Stock Option.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>6.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Change in Control</U>.</P>
</FONT><FONT FACE="CG Times" SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any person (as such term is used in Section 13 of the Exchange Act and the rules and regulations thereunder and including any Affiliate or Associate of such person, as defined in Rule 12b-2 under said Act, and any person acting in concert with such person) directly or indirectly acquires or otherwise becomes entitled to vote more than 80 percent of the voting power entitled to be cast at elections for directors ("Voting Power") of the Company; or</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if there occurs any merger or consolidation of the Company, or any sale, lease, or exchange of all or any substantial part of the consolidated assets of the Company and its subsidiaries to any other person and (a) in the case of a merger or consolidation, the holders of outstanding stock of the Company entitled to vote in elections of directors immediately before such merger or consolidation (excluding for this purpose any person (including any Affiliate or Associate) that directly or indirectly owns or is entitled to vote 20 percent or more of the Voting Power of the Company) holds less than 80 percent of the Voting Power of the survivor of such merger or consolidation or its parent; or (b) in the case of any such sale, lease, or exchange, the Company does not own at least 80 percent of the Voting Power of the other person; or</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if one or more new directors of the Company are elected and at such time three or more directors (or, if less, a majority of the directors) then holding office were not nominated as candidates by a majority of the directors in office immediately before such election;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Subject to all required regulatory and stock exchange approvals, the Board of Directors may, in its discretion, revise, alter, amend or modify any agreement covering an option granted under this Plan, and any then-outstanding option, in any manner that it deems appropriate, including, but not limited to, any of the following respects:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(A)&nbsp;&nbsp;the option may be deemed to pertain to and apply to the securities to which a holder of the number of shares of Stock subject to the unexercised portion thereto would be entitled if he or she actually owned such shares immediately before the record date or other time any such event became effective, and the number of shares subject to the option may be adjusted as necessary to maintain the ratio between the number of shares and the securities, cash and other property subject to the option;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(B)&nbsp;&nbsp;subject to the provisions of Section 422 of the Code applicable to an incentive stock option, the dates upon which outstanding and unexercised options may be exercised may be advanced (without regard to installment exercise limitations, if any);</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(C)&nbsp;&nbsp;the dates upon which restrictions and conditions applicable to outstanding stock shall lapse may be advanced (without regard to any installment limitations); and</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(D)&nbsp;&nbsp;the surrender of shares of stock in a merger, consolidation, or share exchange involving the Company may be authorized notwithstanding any restrictions and conditions applicable to such shares, provided that the securities and/or other considerations received in exchange therefor shall be subject to the restrictions and conditions applicable to the shares at the time of surrender and that the surrendering grantee agrees to any reasonable provisions requested by the Company to assure that any consideration received as a result of such surrender is subject to the same restrictions and conditions as those imposed on the shares surrendered and that the consideration cannot be transferred in violation of any such restrictions.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">If the Board of Directors believes that any such event is reasonably likely to occur, it may so revise, alter, amend, or modify as set forth above at any time before and contingent upon the consummation of such an event.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>6.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Holding Period</U>.</FONT><FONT FACE="CG Times" SIZE=2>  Unless otherwise determined by the Plan Administrator, if a person subject to Section 16 of the Exchange Act exercises an option within six months of the date of grant of the option, the shares of Common Stock acquired upon exercise of the option may not be sold until six months after the date of grant of the option.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>6.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Option Agreements</U>.</FONT><FONT FACE="CG Times" SIZE=2>  Options granted under this Plan shall be evidenced by written stock option agreements (the "Option Agreements") that shall contain such terms, conditions, limitations, and restrictions as the Plan Administrator shall deem advisable and which are consistent with this Plan.  All Option Agreements shall include or incorporate by reference the applicable terms and conditions contained in this Plan.</P>
</FONT><FONT FACE="CG Times"><P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Securities Regulations</U>.</P>
</FONT><FONT FACE="CG Times" SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Shares of Common Stock shall not be issued with respect to an option granted under this Plan unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, any applicable state securities laws, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, applicable laws of foreign countries and other jurisdictions and the requirements of any quotation service or stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance, including the availability of an exemption from registration for the issuance and sale of any shares hereunder.  The inability of the Company to obtain, from any regulatory body having jurisdiction, the authority deemed by the Company's counsel to be necessary for the lawful issuance and sale of any shares hereund
er or the unavailability of an exemption from registration for the issuance and sale of any shares hereunder shall relieve the Company of any liability with respect of the nonissuance or sale of such shares as to which such requisite authority shall not have been obtained.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">As a condition to the exercise of an option, the Company may require the Optionee to represent and warrant at the time of any such exercise that the shares of Common Stock are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any relevant provision of the aforementioned laws.  The Company may place a stop-transfer order against any shares of Common Stock on the official stock books and records of the Company, and a legend may be stamped on stock certificates to the effect that the shares of Common Stock may not be pledged, sold or otherwise transferred unless an opinion of counsel is provided (concurred in by counsel for the Company) stating that such transfer is not in violation of any applicable law or regulation.  The Plan Administrator may also require such other action or agreement by the Optionees as may from time to time be necessary to comply wit
h the federal and state securities laws.  This provision shall not obligate the Company to undertake registration of the options or stock thereunder.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Should any of the Company's capital stock of the same class as the Stock subject to options or rights granted hereunder be listed on a national securities exchange, all Stock issued hereunder if not previously listed on such exchange shall be authorized by that exchange for listing thereon prior to the issuance thereof.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment and Termination</U>.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Plan</U>.  </FONT><FONT FACE="CG Times" SIZE=2>Subject to all required regulatory and stock exchange approvals, the Board of Directors may at any time suspend, amend or terminate this Plan.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Options</U>.  </FONT><FONT FACE="CG Times" SIZE=2>Subject to all required regulatory and stock exchange approvals, and the requirements of Section 422 of the Code with respect to Incentive Stock Options and to the terms and conditions and within the limitations of this Plan and specifically Section&nbsp;7 hereof, the Plan Administrator may modify or amend outstanding options granted under this Plan.  The modification or amendment of an outstanding option shall not, without the consent of the Optionee, impair or diminish any of his or her rights or any of the obligations of the Company under such option.  Except as otherwise provided in this Plan, no outstanding option shall be terminated without the consent of the Optionee.  Unless the Optionee agrees otherwise, any changes or adjustments made to outstanding Incentive Stock Options granted under this Plan shall be made in such a manne
r so as not to constitute a "modification," as defined in Section 425(h) of the Code, and so as not to cause any Incentive Stock Option issued hereunder to fail to continue to qualify as an Incentive Stock Option as defined in Section 422(b) of the Code.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Miscellaneous</U>.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>9.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Time of Granting Options</U>.  </FONT><FONT FACE="CG Times" SIZE=2>The date of grant of an option shall, for all purposes, be the date on which the Board of Directors grants the option; the execution of an Option Agreement and the conditions to the exercise of an option shall not defer the date of grant.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>9.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Status as Shareholder</U>.  </FONT><FONT FACE="CG Times" SIZE=2>Neither the Optionee nor any party to which the Optionee's rights and privileges under the option may pass shall be, or have any of the rights or privileges of, a shareholder of the Company with respect to any of the shares of Common Stock issuable upon the exercise of any option granted under this Plan unless and until such option has been exercised and the issuance (as evidenced by the appropriate entry on the books of the Company or duly authorized transfer agent of the Company) of the stock certificate evidencing such shares.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>9.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Status as an Employee</U>.</FONT><FONT FACE="CG Times" SIZE=2>  Nothing in this Plan or in any option granted pursuant to this Plan shall confer upon any Optionee any right to continue in the employ of the Company or of a related corporation, or to interfere in any way with the right of the Company or of any such related corporation to terminate his or her employment or other relationship with the Company or related corporation at any time.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"></FONT><FONT FACE="CG Times" SIZE=3>9.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reservation of Shares</U>.</FONT><FONT FACE="CG Times" SIZE=2>  The Company, during the term of this Plan, at all times will reserve and keep available such number of shares of Common Stock as shall be sufficient to satisfy the requirements of this Plan.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Adopted by the Board of Directors on March 4, 1994 and approved by the Shareholders on April&nbsp;5, 1994, and amended by the Board of Directors on November&nbsp;17, 1995.</P>
</FONT><FONT FACE="CG Times"><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="CENTER"></FONT><FONT FACE="CG Times">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER">1994 STOCK OPTION PLAN</P>
<U><P ALIGN="CENTER">TABLE OF CONTENTS</P>
</U><P ALIGN="CENTER"></P>
<U><P ALIGN="RIGHT">Page</P>
</U><P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Courier" SIZE=2><P ALIGN="JUSTIFY"><DIR>
<DIR>

</FONT><FONT FACE="CG Times"><P ALIGN="JUSTIFY">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purpose&#9;  1</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Subject to This Plan&#9;  1</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective Date and Duration of This Plan&#9;  1</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective Date&#9;  1</P>
<P ALIGN="JUSTIFY">3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Duration&#9;  1</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>

<P ALIGN="JUSTIFY">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administration&#9;  1</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Procedures&#9;  1</P>
<P ALIGN="JUSTIFY">4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Powers&#9;  2</P>
<P ALIGN="JUSTIFY">4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited Liability&#9;  2</P>
<P ALIGN="JUSTIFY">4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities Exchange Act of 1934&#9;  2</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>

<P ALIGN="JUSTIFY">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligibility&#9;  2</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Optionees&#9;  2</P>
<P ALIGN="JUSTIFY">5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parent, Subsidiaries, and Other Related Corporations&#9;  3</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>

<P ALIGN="JUSTIFY">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Awards&#9;  3</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incentive Stock Options&#9;  3</P>
<P ALIGN="JUSTIFY">6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Qualified Stock Options&#9;  4</P>
<P ALIGN="JUSTIFY">6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vesting&#9;  4</P>
<P ALIGN="JUSTIFY">6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nontransferability&#9;  5</P>
<P ALIGN="JUSTIFY">6.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination of Stock Options&#9;  5</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">6.5.1&nbsp;&nbsp;Generally&#9;  5</P>
<P ALIGN="JUSTIFY">6.5.2&nbsp;&nbsp;Disability&#9;  5</P>
<P ALIGN="JUSTIFY">6.5.3&nbsp;&nbsp;Death&#9;  5</P>
<P ALIGN="JUSTIFY">6.5.4&nbsp;&nbsp;Extension of Exercise Period Applicable to Termination&#9;  5</P>
<P ALIGN="JUSTIFY">6.5.5&nbsp;&nbsp;Failure to Exercise Option&#9;  6</P>
<P ALIGN="JUSTIFY">6.5.6&nbsp;&nbsp;Transfers; Leaves&#9;  6</P></DIR>
</DIR>

<P ALIGN="JUSTIFY">6.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise&#9;  6</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">6.6.1&nbsp;&nbsp;Procedure&#9;  6</P>
<P ALIGN="JUSTIFY">6.6.2&nbsp;&nbsp;Payment&#9;  6</P>
<P ALIGN="JUSTIFY">6.6.3&nbsp;&nbsp;Withholding&#9;  6</P>
<P ALIGN="JUSTIFY">6.6.4  Conditions Precedent to Exercise&#9;  7</P></DIR>
</DIR>

<P ALIGN="JUSTIFY">6.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Qualified Grants&#9;  7</P>
<P ALIGN="JUSTIFY">6.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to Options&#9;  7</P>
<P ALIGN="JUSTIFY">6.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in Control&#9;  7</P>
<P ALIGN="JUSTIFY">6.10&nbsp;&nbsp;&nbsp;&nbsp;Holding Period&#9;  8</P>
<P ALIGN="JUSTIFY">6.11&nbsp;&nbsp;&nbsp;&nbsp;Option Agreements&#9;  8</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>

<P ALIGN="JUSTIFY">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities Regulations&#9;  9</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendment and Termination&#9;  9</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plan&#9;  9</P>
<P ALIGN="JUSTIFY">8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Option&#9;  9</P>
<P ALIGN="JUSTIFY"></P></DIR>
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<P ALIGN="JUSTIFY">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous&#9; 10</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">9.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time of Granting Options&#9; 10</P>
<P ALIGN="JUSTIFY">9.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Status as Shareholder&#9; 10</P>
<P ALIGN="JUSTIFY">9.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Status as an Employee&#9; 10</P>
<P ALIGN="JUSTIFY">9.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reservation of Shares&#9; 10</P>
<P ALIGN="JUSTIFY"></P>
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<B><U><P ALIGN="RIGHT">Exhibit 10.1</P>
<P ALIGN="CENTER">VOTING AGREEMENT</P>
</B></U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">THIS VOTING AGREEMENT (this "Agreement") is made and entered into as of April 15, 2002, among Zoloto Investors, LP, a Delaware limited partnership ("Zoloto"), Solitario Resources Corporation, a Colorado corporation ("Solitario") and Crown Resources Corporation, a Washington corporation (the "Company").</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">WHEREAS, Zoloto and Solitario are each currently shareholders of the Company;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">WHEREAS, Zoloto and Solitario desire to provide for Zoloto and Solitario to vote their shares for the election of three (3) designees of Zoloto and one (1) designee of Solitario (individually, a "Designated Director" and collectively, the "Designated Directors") to the Board of Directors of the Company;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual promises contained herein, it is agreed as follows:</P>
<P ALIGN="JUSTIFY"></P>
<OL TYPE="I">

<U><P ALIGN="CENTER"><LI><BR>
VOTING</LI></P>
</U><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Nomination and Election of Directors</U>.  At each annual meeting of shareholders of the Company or any special meeting (or any action taken by written consent in lieu thereof) called for the purpose of electing directors of the Company or at such other applicable time or times, Zoloto and Solitario each shall vote all of its shares of Common Stock, now owned or hereafter acquired (the "Shares"), in favor of the election of three (3) designees of Zoloto and one (1) designee of Solitario to the Board of Directors of the Company.  Zoloto, Solitario and the Company shall take all reasonably necessary or desirable actions within their respective control to carry out and enforce the terms and intent of this Agreement.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Removal of Directors; Election of Designees</U>.  Except as otherwise directed in writing by the party designating a Designated Director hereunder, neither Zoloto nor Solitario shall vote its Shares in favor of the removal of any Designated Director as a Director of the Company.  </P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendment of Bylaws or Articles of Incorporation</U>.  Zoloto and Solitario shall not vote their Shares in favor of an amendment or repeal of the Company's Bylaws or Articles of Incorporation or for the adoption of new Bylaws or Articles of Incorporation by the Company, without the consent of Zoloto and Solitario, if such amendment or repeal of or new Bylaws or Articles of Incorporation would affect the size or composition of the Board of Directors of the Company in violation of this Agreement.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Proxies</U>.  Zoloto and Solitario shall not give any proxy or power of attorney that permits the holder thereof to vote in his discretion on any matter that may be submitted to the Company's shareholders for their consideration and approval, unless such proxy or power of attorney is made expressly subject to the terms of this Agreement. </P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Legend</U>.  Each certificate evidencing Shares and each certificate issued in exchange for or upon the transfer of any Shares shall be stamped or otherwise imprinted with a legend in substantially the following form:</P>
<P ALIGN="JUSTIFY">"The securities represented by this certificate are subject to a Voting Agreement dated as of April 15, 2002, among the issuer of such securities (the "Company") and certain of the Company's shareholders.  A copy of such Voting Agreement will be furnished without charge by the Company to the holder hereof upon written request."</P>
<P ALIGN="JUSTIFY">The legend set forth above shall be removed from the certificates evidencing any Shares at the request of the holder of such Shares at any time after the termination of this Agreement pursuant to the terms of Article III hereof.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Other Agreements</U>.  Zoloto and Solitario each represents that it has not granted and is not a party to any proxy, voting trust, voting agreement or other agreement which is inconsistent with or conflicts with the provisions of this Agreement, and no holder of Shares shall grant any proxy or become party to any voting trust, voting agreement or other agreement which is inconsistent with or conflicts with the provisions of this Agreement.</P>
<U><P ALIGN="CENTER"><LI><BR>
REMEDIES</LI></P>
</U><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Defenses</U>.  Zoloto and Solitario agree and acknowledge that each restriction, covenant and agreement set forth herein constitutes a separate agreement independently supported by good and adequate consideration.  The existence of any claim or cause of action of either party against any other party, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by Zoloto or Solitario of the restrictions, covenants and agreements contained in this Agreement.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Specific Enforcement</U>.  Zoloto, Solitario and the Company acknowledge and recognize that a violation or threatened violation by any party of the restrictions, agreements or covenants contained in this Agreement will cause such damage to the other parties as will be irreparable and that the other parties will have no adequate remedy at law for such violation or threatened violation.  Accordingly, each party hereto agrees that Zoloto, Solitario and the Company, jointly and severally, shall be entitled as a matter of right to seek and obtain an injunction from any court of competent jurisdiction, restraining any further violation or threatened violation of such restrictions, agreements or covenants and granting mandatory relief compelling such offender to carry out its obligations hereunder.  Such right to injunctive and mandatory relief shall be cumulative and in addition to whatever othe
r remedies Zoloto, Solitario and the Company may have at law or in equity.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability and Reformation</U>.  The parties hereto intend all provisions of this Agreement to be enforced to the fullest extent permitted by law.  Accordingly, should a court of competent jurisdiction determine that the scope of any provision is too broad to be enforced as written, the parties intend that the court should reform the provision to such narrower scope as it determines to be enforceable.  If, however, any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future law, such provision shall be fully severable, and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision were never a part hereof, and the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Attorneys' Fees</U>.  If any legal action is brought by any party hereto to enforce the terms and conditions of this Agreement, it is expressly agreed that the party in whose favor a final judgment is entered shall be entitled, in addition to any other relief which may be awarded, to recover from the other party or parties its reasonable attorneys' fees, together with such prevailing party's other costs and reasonable and necessary expenses incurred in connection with such litigation.</P>
<U><P ALIGN="CENTER"><LI><BR>
TERM</LI></P>
</U><P ALIGN="JUSTIFY">Unless sooner terminated by written notice by Zoloto to the other parties hereto, this Agreement shall terminate on the third anniversary of the date on which the first annual meeting of shareholders is held for the election of directors of the Company after the date hereof.</P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="CENTER"><LI><BR>
MISCELLANEOUS PROVISIONS</LI></P></OL>

</U><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.  All notices, consents, demands, requests, approvals or other communications which are required or permitted to be given to the parties hereto shall be in writing and shall be deemed to have been duly given three (3) days following deposit in the United States mail, return receipt requested, first class, postage prepaid, or upon delivery by overnight courier, to the parties at the following addresses:</P>
<P ALIGN="JUSTIFY">If to Zoloto:</P>
<P ALIGN="JUSTIFY">Zoloto Investors, LP</P>
<P ALIGN="JUSTIFY">14701 St. Mary's Lane</P>
<P ALIGN="JUSTIFY">Suite 800</P>
<P ALIGN="JUSTIFY">Houston, Texas  77079</P>
<P ALIGN="JUSTIFY">Attention:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr. Steven A. Webster</P>
<P ALIGN="JUSTIFY">Manager of Zoloto, LLC, </P>
<P ALIGN="JUSTIFY">its General Partner </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">If to Solitario:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Solitario Resources Corporation</P>
<P ALIGN="JUSTIFY">4251 Kipling Street</P>
<P ALIGN="JUSTIFY">Suite 390</P>
<P ALIGN="JUSTIFY">Wheat Ridge, Colorado  80033</P>
<P ALIGN="JUSTIFY">Attention:  President</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">If to the Company:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Crown Resources Corporation</P>
<P ALIGN="JUSTIFY">4251 Kipling Street</P>
<P ALIGN="JUSTIFY">Suite 390</P>
<P ALIGN="JUSTIFY">Wheat Ridge, Colorado  80033</P>
<P ALIGN="JUSTIFY">Attention:  President</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">A party may change its address above only by giving written notice of such change of address to the other parties.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Construction</U>.  The use of the singular number shall include the plural, and the plural number shall include the singular wherever appropriate.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Gender</U>.  The use of any gender in this Agreement shall be deemed to be or include the other gender wherever appropriate.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>.  This Agreement shall be governed, construed and enforced in accordance with the laws of the State of Washington.  This Agreement is performable in, and venue of any action relating to or pertaining to this Agreement shall lie in, Harris County, Texas.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Inurement; Transfers</U>.  The provisions of this Agreement shall inure to the benefit of, and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto.  Zoloto and Solitario shall cause any transferee of any Shares to execute a consent, in the form attached hereto as Schedule 4.5, agreeing to be bound by the provisions of this Agreement.  In connection with any transfer of any Shares, the spouse of each transferee shall be deemed to be a party to this Agreement, shall be bound by all of the terms and conditions hereof, and shall so signify by executing the form of consent attached hereby to Schedule 4.5 in connection with such transfer.  Zoloto and Solitario shall provide a copy of this Agreement to the Company, which the Company shall keep in its corporate records.  The Company shall make such co
py available to any persons requesting an inspection of the Company's books and records.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment</U>.  This Agreement may only be amended by written consent of all the parties to this Agreement at the time of such amendment or their assigns, successors in interest, personal representatives, heirs or legatees.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>.  The headings used in this Agreement are used for administrative purposes only and do not constitute substantive matters to be considered in construing the terms of this Agreement</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire Agreement</U>.  This Agreement embodies the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings relating to the subject matter hereof.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.  This Agreement may be executed in one or more counterparts, each of which shall constitute an original hereof, but all of which shall constitute one and the same document.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">ZOLOTO:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">ZOLOTO INVESTORS, LP</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ZOLOTO, LLC, its General Partner</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">By:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Steven A. Webster</P>
<P ALIGN="JUSTIFY">Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Manager</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">SOLITARIO:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">By:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P ALIGN="JUSTIFY">Name:  <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P ALIGN="JUSTIFY">Title:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">COMPANY:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">CROWN RESOURCES CORPORATION</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">By:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P ALIGN="JUSTIFY">Name:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P ALIGN="JUSTIFY">Title:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><B><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SCHEDULE 4.5</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">CONSENT</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned, having acquired shares of common stock of Crown Resources Corporation, a Washington corporation (the "Company"), hereby agrees to be bound by the terms and conditions of the Voting Agreement, dated as of April 15, 2002, among the shareholders of the Company therein named and the Company, the form of which is attached hereto, as if the undersigned had been a party to such Voting Agreement as of the date thereof.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P><DIR>
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<P ALIGN="JUSTIFY">Name:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Signature:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Address:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No. of Shares:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Spouse's Signature:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></DIR>
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<U><FONT FACE="Arial"><P ALIGN="RIGHT">Exhibit 4.1</P>
</U><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">COMMON STOCK NUMBER&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COMMON STOCK SHARES</P>
<P ALIGN="LEFT"></P>
</FONT><FONT FACE="Arial" SIZE=6><P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
</FONT><FONT FACE="Arial"><P ALIGN="CENTER">INCORPORATED UNDER THE LAWS OF THE STATE OF COLORADO</P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83422R 10 6</P>
<P ALIGN="LEFT"></P>
</FONT><FONT FACE="Arial" SIZE=1><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEE REVERSE FOR CERTAIN DEFINITIONS&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb
sp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Arial">CUSIP 83422R 10 6</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">THIS </P>
<P ALIGN="LEFT">CERTIFIES</P>
<P ALIGN="LEFT">THAT</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">IS THE</P>
<P ALIGN="LEFT">RECORD</P>
<P ALIGN="LEFT">HOLDER OF</P>
<P ALIGN="LEFT"></P>
<P ALIGN="CENTER">FULLY PAID AND NON-ASSESSABLE SHARES OF COMMON STOCK, PAR VALUE U.S. $0.01 PER SHARE, OF</P>
</FONT><FONT FACE="Arial" SIZE=4><P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
</FONT><FONT FACE="Arial" SIZE=1><P ALIGN="LEFT">transferable on the books of the Corporation in person or by duly authorized attorney upon surrender of this Certificate properly endorsed.</P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Certificate is not valid unless countersigned and registered by the Transfer Agent and Registrar.</P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WITNESS the facsimile signatures of the duly authorized officers of the Corporation.</P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DATED:</P>
<P ALIGN="LEFT"></P>
</FONT><FONT FACE="Arial" SIZE=2><P ALIGN="LEFT">/s/ James R. Maronick&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp
;&nbsp;/s/ Christopher E. Herald</P>
<P ALIGN="LEFT">SECRETARY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&n
bsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRESIDENT</P>
<P ALIGN="LEFT"></P>
</FONT><FONT FACE="Arial" SIZE=1><P ALIGN="LEFT">THE SHARES REPRESENTED BY THIS CERTIFICATE ARE TRANSFERABLE AT THE PRINCIPAL OFFICE OF COMPUTERSHARE TRUST COMPANY OF CANADA IN TORONTO, CANADA.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">COUNTERSIGNED AND REGISTERED:</P>
<P ALIGN="LEFT">COMPUTERSHARE TRUST COMPANY OF CANADA, Toronto, Canada</P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TRANSFER AGENT AND REGISTRAR</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">BY<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AUTHORIZED SIGNATURE</P></FONT></BODY>
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<TYPE>EX-3.2
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<TITLE>AMENDED AND RESTATED BYLAWS</TITLE>
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<U><P ALIGN="RIGHT">Exhibit 3.2</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">AMENDED AND RESTATED BYLAWS</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">OF</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">(As of _________________, 1993)</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<OL>

<P ALIGN="CENTER"><LI><BR>
<BR>
<U>OFFICES</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal office of the Corporation shall be located in the City and County of Denver, Colorado.  The Corporation may also have offices at such other places inside or outside the State of Colorado as the Board of Directors may from time to time determine or the business of the Corporation may require.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>SHAREHOLDERS</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Place of Meetings</U>.  Meetings of the shareholders shall be held at the principal office of the Corporation or at such other place inside or outside the State of Colorado as the Board of Directors shall authorize and direct.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Annual Meeting</U>.  The annual meeting of the shareholders shall be held on the third Tuesday of March at 10:00 o'clock a.m. in each year if not a legal holiday; and if a legal holiday, then on the next business day following at the same hour, when the shareholders shall elect directors and transact such other business as may properly come before the meeting.  The Board of Directors may designate a different date before or after such date.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Special Meetings</U>.  Special meetings of the shareholders may be called only as permitted in the Corporation's Restated Articles of Incorporation.  Such request and the notice of meeting issued pursuant thereto shall state the purpose or purposes of the proposed meeting.  Business transacted at a special meeting shall be confined to the purpose stated in the notice.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Fixing Record Date</U>.  For the purpose of determining the shareholders qualified or entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, or to express consent to or dissent from any proposal without a meeting, or for the purpose of determining shareholders qualified or entitled to receive payment of any dividend or the allotment of any rights, or for any other proper purpose, the Board of Directors shall fix, in advance, a date as the record date for any such determination of shareholders.  Such date shall be not more than fifty (50) nor less than ten (10) days before the date of such meeting.  If no record date is fixed by the Board, the record date for any such purpose shall be twenty (20) days before the date of such meeting or action.  When such determination of qualified or entitled shareholders has been made as provided above, such determination shall 
also apply to any adjourned meeting, except where transfer of stock to a new holder has been entered on the transfer books of the Corporation after the original meeting was adjourned and at least twenty (20) days before the date of such adjourned meeting.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notice of Meetings of Shareholders</U>.  Written notice shall be delivered either personally or by mail to each shareholder entitled to vote at any meeting of the shareholders.  Such notice shall be delivered not less than ten (10) nor more than fifty (50) days before the date of the meeting, except that if the authorized shares are to be increased, at least thirty (30) days' notice shall be given.  The notice of each meeting shall state the place, date and hour of the meeting and, in case of a special meeting, the purpose or purposes for which the meeting is called.  The notice shall indicate that it is being issued by or at the direction of the officer or persons calling the meeting.  If mailed, such notice shall be deemed delivered when deposited in the United States mail, with postage prepaid, addressed to the shareholder at his address as it appears on the record of shareholders, or if he shal
l have filed with the Secretary a written request that notices to him be mailed to some other address, then directed to him at such other address.  Unless the Board of Directors shall fix a new record date for an adjourned meeting or unless the adjournment is for more than thirty (30) days, notice of such adjourned meeting need not be given if the time and place to which the meeting shall be adjourned were announced at the meeting at which the adjournment is taken.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Waivers</U>.  Notice of a meeting need not be given to any shareholder who signs, either in person or by proxy and whether before or after the meeting, a waiver of notice.  The attendance, whether in person or by proxy, of any shareholder at a meeting (a) shall constitute a waiver of an objection by such shareholder to lack of notice or defective notice of such meeting unless the shareholder, at the beginning of the meeting, objects to the holding of the meeting or the transacting of business at the meeting, and (b) shall constitute a waiver of an objection by such shareholder to consideration at such meeting of a particular matter not within the purpose or purposes described in the meeting notice unless the shareholder objects to considering the matter when it is presented.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Quorum of Shareholders</U>.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">2.7.1&nbsp;&nbsp;A majority of the outstanding shares of the Corporation entitled to vote, represented in person or by proxy, shall constitute a quorum at a meeting of shareholders for the transaction of any business; provided, however, that when a specified item of business is required to be voted on by a class or classes, representatives of a majority of the shares of such class or classes shall constitute a quorum for the transaction of such specified item of business.  Unless otherwise required herein, by law or by the Restated Articles of Incorporation, the vote of a majority of the shares present at the time of a vote, if a quorum is or has been present, shall be the act of the shareholders.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">2.7.2&nbsp;&nbsp;If less than a majority of the outstanding shares entitled to vote thereat are represented at a meeting, or for any valid business reason at a meeting where such majority is present, a majority in interest of the shareholders present may adjourn the meeting from time to time to a fixed date without further notice as to the time and place of such adjourned meeting, but each adjournment shall be for a period not in excess of sixty (60) days.  At any such adjourned meeting at which a quorum shall be present or represented, only such business may be transacted which might have been transacted at any meeting as originally scheduled, unless all shares are represented and do not object.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">2.7.3&nbsp;&nbsp;When a quorum is once present to organize a meeting, it is not broken by the subsequent withdrawal of any shareholder and those remaining may continue to transact business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Proxies</U>.  Every shareholder entitled to vote at a meeting of the shareholders or to express consent or dissent without a meeting may authorize another person or persons to act for him by proxy.  Every proxy must be signed by the shareholder or his attorney-in-fact and delivered to the secretary of the meeting prior to or during the roll call, or be returned to the Corporation with the signed consent to action without a meeting.  No proxy shall be valid after the expiration of eleven (11) months from the date thereof unless otherwise provided in the proxy.  Every proxy shall be revocable at the pleasure of the shareholder executing it, except as otherwise provided by law.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Voting</U>.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">2.9.1&nbsp;&nbsp;At all meetings of shareholders voting may be viva voce; however, any qualified voter may demand a stock vote, whereupon such vote shall be taken by ballot and the Secretary shall record the name of the shareholder voting, the number of shares voted, and, if such vote shall be by proxy, the name of the proxy holder.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">2.9.2&nbsp;&nbsp;Each shareholder shall have one vote for each share issued and outstanding which is registered in his name on the books of the Corporation, except as otherwise provided in the Restated Articles of Incorporation and except where the transfer books of the Corporation shall have been closed or a date shall have been fixed as a record date for the determination of shareholders entitled to vote prior to his becoming a shareholder.  A complete list of shareholders entitled to vote at such meeting of the shareholders or any adjournment thereof, arranged in alphabetical order and setting forth the number of voting shares held by each shareholder, shall be prepared by the Secretary or the transfer agent of the Corporation who shall have charge of the stock ledger and stock transfer books of the Corporation.  Such list shall be subject to inspection by any shareholder at the principal office of the Corporation during business hours for ten (10) days prior to such meeting and throughout
 the meeting or any adjournment thereof.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Inspectors</U>.  The Board may, in advance of any meeting of shareholders, appoint one or more inspectors to act at such meeting or any adjournment thereof.  If the inspectors shall not be so appointed or if any of them shall fail to appear or act, the chairman of the meeting may appoint inspectors.  Each inspector, before entering upon the discharge of his duties, shall take and sign an oath faithfully to execute the duties of inspector at such meeting with strict impartiality and according to the best of his ability.  The inspectors shall determine the number of shares outstanding and the voting power of each, the number of shares represented at the meeting, the existence of a quorum, the validity and effect of proxies, and shall receive votes, ballots or consents, hear and determine all challenges and questions arising in connection with the right to vote, count and tabulate all votes, ballots 
or consents, determine the result and do such acts as are proper to conduct the election or vote with fairness to all shareholders.  On request of the chairman of the meeting or any shareholder entitled to vote thereat, the inspector shall make a report in writing of any challenge, request or matter determined by them and shall execute a certificate of any fact found by them.  No director or candidate for the office of director shall act as an inspector of an election of directors.  Inspectors need not be shareholders.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Director&nbsp;Nominations</U>.  Nominations of candidates for election as directors at any meeting of shareholders may be made (a) by, or at the direction of, a majority of the Board of Directors or (b) by any shareholder entitled to vote at such a meeting.  Only persons nominated in accordance with the procedures set forth in this Section 2.11 shall be eligible for election as directors at such a meeting.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nominations, other than those made by, or at the direction of, the Board of Directors, shall be made pursuant to timely notice in writing to the Secretary of the Corporation as set forth in this Section 2.11.  To be timely a shareholder's notice shall be delivered to, or mailed and received at, the principal executive offices of the Corporation not less than sixty (60) days nor more than ninety (90) days prior to the date of a scheduled shareholders' meeting, regardless of postponements, deferrals, or adjournments of that meeting to a later date; <U>provided</U>, <U>however</U>, that if less than seventy (70) days' notice or prior public disclosure of the scheduled date of such a meeting is given or made, notice by the shareholder to be timely must be so delivered or received not later than the close of business on the tenth (10th) day following the earlier of the day on which such notice of the date of the scheduled meeting was m
ailed or the day on which such public disclosure was made.  Such shareholder's notice shall set forth (a) as to each person whom the shareholder proposes to nominate for election or re-election as a director and as to the shareholder giving the notice (i) the name, age, business address and residence address of such person, (ii) the principal occupation or employment of such person, (iii) the class and number of shares of stock of the Corporation which are beneficially owned by such person on the date of such shareholder notice and (iv) any other information relating to such person that is required to be disclosed in solicitations of proxies with respect to nominees for election as directors, pursuant to Regulation&nbsp;14A under the Securities Exchange Act of 1934, as amended, including, but not limited to, information required to be disclosed by Item&nbsp;4(b) and Item&nbsp;6 of Schedule&nbsp;A of Regulation&nbsp;14A and information which would be required to be filed on Schedule&nbsp;B of Regulation&nbsp;
14A with the Securities and Exchange Commission; and (b) as to the shareholder giving the notice (i) the name and address, as they appear on the Corporation's books, of such shareholder and any other shareholders known by such shareholder to be supporting such nominees and (ii) the class and number of shares of stock of the Corporation which are beneficially owned by such shareholder on the date of such shareholder notice and by any other shareholders known by such shareholder to be supporting such nominees on the date of such shareholder notice.  At the request of the Board of Directors, any person nominated by, or at the direction of, the Board for election as a director at a meeting of the shareholders shall furnish to the secretary of the Corporation that information required to be set forth in a shareholder's notice of nomination which pertains to the nominee.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No person shall be elected as a director of the Corporation unless nominated in accordance with the procedures set forth in this Section&nbsp;2.11.  Ballots bearing the names of all the persons who have been nominated for election as directors at a meeting of the shareholders in accordance with the procedures set forth in this Section&nbsp;2.11 shall be provided for use at the meeting.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors may reject any nomination by a shareholder not timely made in accordance with the requirements of this Section&nbsp;2.11.  If the Board of Directors, or a designated committee thereof, determines that the information provided in a shareholder's notice does not satisfy the informational requirements of this Section&nbsp;2.11 in any material respect, the Secretary of the Corporation shall promptly notify such shareholder of the deficiency in the notice.  The shareholder shall have an opportunity to cure the deficiency by providing additional information to the Secretary within such period of time, not to exceed five days from the date such deficiency notice is given to the shareholder, as the Board of Directors or such committee shall reasonably determine.  If the deficiency is not cured within such period, or if the Board of Directors or such committee reasonably determines that the additional information pro
vided by the shareholder, together with information previously provided, does not satisfy the requirements of this Section&nbsp;2.11 in any material respect, then the Board of Directors may reject such shareholder's nomination.  The secretary of the Corporation shall notify a shareholder in writing whether his nomination has been made in accordance with the time and information requirements of this Section&nbsp;2.11.  Notwithstanding the procedure set forth in this paragraph, if neither the Board of Directors nor such committee makes a determination as to the validity of any nominations by a shareholder, the presiding officer of the meeting of the shareholders shall determine and declare at the meeting whether a nomination was made in accordance with the terms of Section&nbsp;2.11.  If the presiding officer determines that a nomination was made in accordance with the terms of this Section&nbsp;2.11, he or she shall so declare at the meeting and ballots shall be provided for use at the meeting with respect to
 such nominee.  If the presiding officer determines that a nomination was not made in accordance with the terms of this Section&nbsp;2.11, he or she shall so declare at the meeting and the defective nomination shall be disregarded.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>New Business</U>.  At an annual meeting of shareholders, only such new business shall be conducted, and only such proposals shall be acted upon as shall have been brought before the annual meeting (a) by, or at the direction of, the Board of Directors or (b) by any shareholder of the Corporation who complies with the notice procedures set forth in this Section&nbsp;2.12.  For a proposal to be properly brought before an annual meeting by a shareholder, the shareholder must have given timely notice thereof in writing to the Secretary of the Corporation.  To be timely, a shareholder's notice must be delivered to, or mailed and received at, the principal executive offices of the Corporation not less than sixty (60) days nor more than ninety (90) days prior to the scheduled annual meeting, regardless of any postponements, deferrals or adjournments of that meeting to a later date; <U>provided</U>, <U>ho
wever</U>, that, if less than seventy (70) days' notice or prior public disclosure of the date of the scheduled annual meeting is given or made, notice by the shareholder to be timely must be so delivered or received not later than the close of business on the tenth (10th) day following the earlier of the day on which such notice of the date of the scheduled annual meeting was mailed or the day on which such public disclosure was made.  A shareholder's notice to the Secretary shall set forth as to each matter the shareholder proposes to bring before the annual meeting (a) a brief description of the proposal desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, (b) the name and address, as they appear on the Corporation's books, of the shareholder proposing such business and any other shareholders known by such shareholder to be supporting such proposal, (c) the class and number of shares of stock of the Corporation which are beneficially owned by 
the shareholder on the date of such shareholder notice and by any other shareholders known by such shareholder to be supporting such proposal on the date of such shareholder notice, and (d) any financial interest of the shareholder in such proposal.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors may reject any shareholder proposal not timely made in accordance with the terms of this Section&nbsp;2.12.  If the Board of Directors, or a designated committee thereof, determines that the information provided in a shareholder's notice does not satisfy the informational requirements of this Section&nbsp;2.12 in any material respect, the Secretary of the Corporation shall promptly notify such shareholder of the deficiency in the notice.  The shareholder shall have an opportunity to cure the deficiency by providing additional information to the Secretary within such period of time, not to exceed five (5) days from the date such deficiency notice is given to the shareholder, as the Board of Directors or such committee shall reasonably determine.  If the deficiency is not cured within such period, or if the Board of Directors or such committee determines that the additional information provided by the sharehol
der, together with information previously provided, does not satisfy the requirements of this Section&nbsp;2.12 in any material respect, then the Board of Directors may reject such shareholder's proposal.  The Secretary of the Corporation shall notify a shareholder in writing whether his proposal has been made in accordance with the time and informational requirements of this Section&nbsp;2.12.  Notwithstanding the procedure set forth in this paragraph, if neither the Board of Directors nor such committee makes a determination as to the validity of any shareholder proposal, the presiding officer of the annual meeting shall determine and declare at the annual meeting whether the shareholder proposal was made in accordance with the terms of this Section&nbsp;2.12.  If the presiding officer determines that a shareholder proposal was made in accordance with the terms of this Section&nbsp;2.12, he or she shall so declare at the annual meeting and ballots shall be provided for use at the meeting with respect to an
y such proposal.  If the presiding officer determines that a shareholder proposal was not made in accordance with the terms of this Section&nbsp;2.12, he or she shall so declare at the annual meeting and any such proposal shall not be acted upon at the annual meeting.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This provision shall not prevent the consideration and approval or disapproval at the annual meeting of reports of officers, directors and committees of the Board of Directors, but, in connection with such reports, no new business shall be acted upon at such annual meeting unless stated, filed and received as herein provided.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Shareholders' Action Without A Meeting</U>.  No action may be taken by the shareholders of the Corporation except at a duly called meeting of the shareholders.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>DIRECTORS</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Number and Qualification</U>.  The business of the Corporation shall be managed by a Board of Directors, the number of directors of which shall consist of not less than three (3) (except there need only be as many directors as there are, or initially will be, shareholders in the event that the outstanding shares are, or initially will be, held of record by fewer than three (3) shareholders), nor more than nine (9) members, each of whom shall be at least eighteen (18) years of age but who need not be shareholders or residents of the State of Colorado.  The precise number of members of the Board of Directors shall be fixed from time to time by resolution of the Board of Directors.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Election and Term of Directors</U>.  At each annual meeting of shareholders, the shareholders shall elect directors in accordance with the Restated Articles of Incorporation.  Each director shall hold office for the term provided in the Restated Articles of Incorporation and until his successor has been elected and qualified, or until his death, resignation or removal.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Newly Created Directorships and Vacancies</U>.  Newly created directorships resulting from an increase in the number of directors or vacancies occurring in the Board for any reason may be filled by a vote of a majority of the directors then in office, although less than a quorum exists, unless otherwise provided in the Restated Articles of Incorporation.  A director chosen to fill a position resulting from an increase in the number of directors or to fill a vacancy caused by resignation, death or removal shall be elected to hold such office for the term set forth in the Restated Articles of Incorporation.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Resignation and Removal</U>.  A director may resign at any time by giving written notice to the Board, the President, or the Secretary of the Corporation.  Unless otherwise specified in the notice, the resignation shall take effect upon receipt thereof by the Board or such officer, and the acceptance of the resignation shall not be necessary to make it effective.  A director may be removed only in the manner provided by law or the Restated Articles of Incorporation.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Quorum of Directors</U>.  A majority of the entire Board of Directors shall constitute a quorum for the transaction of business or of any specified item of business.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Action of the Board of Directors</U>.  Unless otherwise required by law or the Restated Articles of Incorporation, the vote of a majority of the directors at the time of the vote, if a quorum is present at the commencement of the meeting at which the vote is taken, shall be the act of the Board of Directors.  Each director present shall have one vote regardless of the number of shares, if any, which he may hold.  The directors present at a duly convened meeting may continue to do business until adjournment.  Abstention from voting on any matter presented at a meeting at which there is a quorum shall be counted as a vote against the matter.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Place and Time of Board Meetings</U>.  The Board of Directors may hold its meetings at the office of the Corporation or at such other places, either within or without the State of Colorado, as it may from time to time determine.  Members of the Board of Directors or any committee designated by the Board of Directors pursuant to Section 3.13 hereof may participate in a meeting of the Board or committee by means of conference telephone or similar communications equipment by which all persons participating in the meeting can hear each other at the same time.  Such participation shall constitute presence in person at the meeting.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Regular Annual Meeting</U>.  A regular annual meeting of the Board of Directors shall be held immediately following the annual meeting of shareholders at the place of such annual meeting of shareholders, unless some other place shall be specified by resolution of the Board of Directors.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Regular Meetings</U>.  Regular meetings of the Board of Directors, of which there shall be at least one per year in addition to the annual meeting, shall be held at such place, day and hour as shall from time to time be fixed by resolution of the Board.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Special Meetings</U>.  Special meetings of the Board of Directors may be held at any place at any time whenever called by the Chairman of the Board or the President.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notice of Meetings of the Board; Adjournment</U>.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">3.11.1&nbsp;&nbsp;Regular meetings of the Board may be held without notice at such time and place as the Board shall from time to time determine.  Special meetings of the Board shall be held upon notice to the directors and may be called by the Chairman of the Board or the President to each director either personally or by mail, telegraph, telephone, cable, wireless, or any other means of communication, received at least forty-eight (48) hours prior to the time of the meeting.  Notice is deemed to be given when deposited in the United States mail, postage prepaid, if it is so deposited not less than five (5) days prior to the date of the meeting.  Notice of a meeting need not be given to any director who submits a waiver of notice, whether before or after the meeting, or who attends the meeting without objecting at the beginning of the meeting to the holding of the meeting or the transacting of business at the meeting.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">3.11.2&nbsp;&nbsp;A majority of the directors present, whether or not a quorum is present, may adjourn any meeting to another time and place.  The Secretary of the Corporation shall use his best efforts to provide notice of the adjournment shall be given to all directors who were absent at the time of the adjournment and, unless such time and place are announced at the meeting, to the other directors but such notice shall be valid even if delivered or received less than forty-eight (48) hours prior to the commencement of the adjourned meeting.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Chairman</U>.  At all meetings of the Board of Directors the Chairman of the Board, if one has been elected, shall preside.  In the absence of the Chairman, the Chief Executive Officer, the President, or in his absence the next highest officer, shall preside.  In any event, a chairman chosen by the Board may preside.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Executive and Other Committees</U>.  The Board of Directors, by resolution adopted by a majority of the entire Board, may designate from among its members an executive committee and other committees, each consisting of three (3) or more directors.  Each such committee shall serve at the pleasure of the Board.  Each such committee may exercise the authority of the Board of Directors to the extent provided in such resolution and any subsequent resolutions pertaining thereto and adopted in like manner, provided that the authority of each such committee shall be subject to the limitations set forth in Colorado Corporation Code Section 7-5-107, as now or hereafter amended.  Such committees shall keep regular minutes of their proceedings and report to the Board of Directors when requested to do so.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compensation</U>.  Directors as such shall receive no compensation for their services except such fees for attending meetings or a stated salary or such other consideration as may be authorized by a majority of the entire Board of Directors from time to time; provided, that this does not preclude any director from serving the Corporation in any other capacity and receiving compensation therefor, nor does it preclude the Board of Directors from authorizing the reimbursement of expenses incurred by directors in attending meetings of the Board of Directors or of any committee created by the Board of Directors.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Presumption of Assent</U>.  A director of the Corporation who is present at a meeting of the Board of Directors or a committee of the Board at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless (a) he objects at the beginning of such meeting to the holding of the meeting or the transacting of business at the meeting, (b) he contemporaneously requests that his dissent from the action taken be entered in the minutes of such meeting, or (c) he files his written dissent to such action with the person presiding at the meeting before the adjournment thereof or shall forward such dissent by registered mail to the Secretary of the Corporation immediately after the adjournment of the meeting.  The right of a director to dissent as to a specific action taken in a meeting of the Board or a committee of the Board pursuant to this Section 3.15 is not ava
ilable to a director who votes in favor of such action.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Written Consent of Directors</U>.  Any action that may be taken by vote at a meeting of the Board or a committee of the Board may be taken without a meeting if the action is evidenced by one or more written consents describing the action taken, signed by each director or committee member, and delivered to the Secretary for inclusion in the minutes or for filing with the corporate records.  Action taken under this Section 3.16 is effective when all directors or committee members have signed the consent unless the consent specifies a different effective date.  Such consent has the same force and effect as an unanimous vote of the directors or committee members and may be stated as such in any document.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>OFFICERS</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Offices, Election and Term of Office</U>.</P>
<P ALIGN="JUSTIFY"></P><OL>

<OL>

<P ALIGN="LEFT"><LI>The Board of Directors shall elect or appoint a Chief Executive Officer, a President, a Secretary and Treasurer, and such other officers, including one or more Vice Presidents and a Chairman of the Board, as the Board may determine, who shall have such duties, powers and functions as hereinafter provided.</LI></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT"><LI>All officers that are elected or appointed shall hold office at the pleasure of the Board.</LI></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT"><LI>None of the officers of the Corporation need be a director.</LI></P></OL>
</OL>

<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Removal, Resignation, Salary, Etc.</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">4.2.1&nbsp;&nbsp;Any officer elected or appointed by the Board may be removed by the Board with or without cause.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">4.2.2&nbsp;&nbsp;In the event that a vacancy exists in any office due to the death, resignation or removal of an officer or for any other reason, the Board in its discretion may elect or appoint a successor at any regular or special meeting.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">4.2.3&nbsp;&nbsp;Any two or more offices may be held by the same person, except the offices of President and Secretary.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">4.2.4&nbsp;&nbsp;The salaries and other compensation of all officers shall be fixed by the Board from time to time.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Chairman of the Board</U>.  The Chairman of the Board, if any, shall, if present, preside at each meeting of the Board of Directors and shall be an ex officio member of all committees of the Board.  He shall perform all such duties as may from time to time be assigned to him by the Board of Directors.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Chief Executive Officer</U>.  Chief Executive Officer shall be the principal executive officer of the Corporation and, subject to the control of the Board of Directors, shall offer supervision, advice and counsel to the President.  In the absence of the Chairman of the Board, if any, the Chief Executive Officer shall preside at each meeting of the Board of Directors.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>President</U>.  The President shall be an executive officer of the Corporation and, subject to the control of the Board of Directors and the Chief Executive Officer, shall in general supervise and control all of the business and affairs of the Corporation.  He shall, when present, preside at all meetings of the shareholders, and, in the absence of the Chairman of the Board, of the Board of Directors.  He may sign, with the Secretary or any other proper officer of the Corporation thereunto authorized by the Board of Directors, certificates for shares of the Corporation, and, without limiting his authority to execute any of the following not requiring specific approval by the Board of Directors, any deeds, mortgages, bonds, contracts, or other instruments which the Board of Directors has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by
 the Board of Directors or by the Bylaws to some other officer or agent of the Corporation or shall be required by law to be otherwise signed or executed.  In general the President shall perform all duties incident to the office and such other duties as may be prescribed by the Board of Directors from time to time.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Vice President</U>.  The Corporation shall have one or more Vice Presidents.  In the absence of the President or in the event of his death or inability or refusal to act, the Vice President (or, if there is more than one, then the Vice President designated by the Board of Directors) shall perform the duties of the President, and when so acting, shall have all the powers of and be subject to all the restrictions upon the President.  The Vice President(s) shall perform such other duties as from time to time may be assigned to him by the President or by the Board of Directors.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Secretary</U>.  The Secretary shall attend all meetings of the Board of Directors and of the shareholders and record all votes and minutes of all proceedings in a book or books to be kept for that purpose.  He shall keep in safe custody the seal of the Corporation, if any, and affix it to any instrument when authorized, and he shall keep all the documents and records of the Corporation as required by law or otherwise in a proper and safe manner.  When required he shall prepare or cause to be prepared and available at each meeting of shareholders entitled to vote thereat, a list of shareholders indicating the number of shares of each respective class held by each.  In general he shall perform all duties incident to the office of Secretary and such other duties as may be prescribed from time to time by the President or the Board of Directors.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Treasurer</U>.  The Treasurer shall have the custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disbursements in the corporate books.  He shall deposit all money and other valuables in the name and to the credit of the Corporation in such depositories as may be designated by the Board and disburse the funds of the Corporation as may be ordered or authorized by the Board and preserve proper vouchers for such disbursements.  He shall render to the President and Board at the regular meetings of the Board, or whenever they require it, an account of all his transactions as Treasurer and of the financial condition of the Corporation, and he shall render a full financial report at the annual meeting of the shareholders if so requested.  The Treasurer shall be furnished, at his request, with such reports and statements as he may require from the corporat
e officers and agents as to all financial transactions of the Corporation.  In general he shall perform all duties as are given to him by these Bylaws or as from time to time are assigned to him by the Board of Directors or President.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assistant Officers</U>.  The Board of Directors may elect (or delegate to the Chairman of the Board or to the President the right to appoint) such other officers and agents as may be necessary or desirable for the business of the of the Corporation.  Such other officers may include one or more assistant secretaries and treasurers who shall have the power and authority to act in place of the officer to whom they are elected or appointed as an assistant in the event of the officer's inability or unavailability to act in his official capacity.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sureties and Bonds</U>.  In case the Board of Directors shall so require, any officer or agent of the Corporation shall execute to the Corporation a bond in such sum and with such surety or sureties as the Board may direct.  The Bond shall be conditioned upon the officer's or agent's faithful performance of his duties to the Corporation and including responsibility for negligence and for the accounting for all property, funds or securities of the Corporation which may come into his hands.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>SHARES AND CERTIFICATES OF SHARES</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Share Certificates</U>.  Share certificates shall be issued in numerical order, and each shareholder shall be entitled to a certificate signed by the President or a Vice President, attested by the Secretary or an Assistant Secretary, and which may be sealed with the corporate seal, if any.  Facsimiles of the signatures and seal may be used, as permitted by law.  Every share certificate shall state:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">5.1.1&nbsp;&nbsp;The name of the Corporation and that it is organized under the laws of the State of Colorado;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">5.1.2&nbsp;&nbsp;The name of the person to whom issued;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">5.1.3&nbsp;&nbsp;The number, class and series (if any) of shares which this certificate represents;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">5.1.4&nbsp;&nbsp;If the Corporation is authorized to issue shares of more than one class, that upon request and without charge, the Corporation will furnish any shareholder with a full statement of the designations, preferences, limitations and relative rights of the shares of each class.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Consideration for Shares</U>.  Shares of the Corporation may be issued for such consideration as shall be authorized by the Board of Directors establishing a price (in money or other consideration) or a minimum price or general formula or method by which the price will be determined.  The consideration for the issuance of shares may be paid in whole or in part in cash, promissory notes, services performed, contracts for services to be performed, or any other tangible or intangible property.  The reasonable charges and expenses of organization or reorganization and the reasonable expenses of and compensation for the sale or underwriting of its shares may be paid or allowed by the Corporation out of the consideration received by it in payment for its shares without rendering the shares not fully paid or assessable.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transfers</U>.  Shares may be transferred by delivery of the certificate, accompanied either by an assignment in writing on the back of the certificate, or by a written power of attorney to sell, assign and transfer the same, signed by the record holder of the certificate.  Except as otherwise specifically provided in these Bylaws, no shares of stock shall be transferred on the books of the Corporation until the outstanding certificate therefor has been surrendered to the Corporation.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Loss or Destruction of Certificates</U>.  In the event of the loss or destruction of any certificate, a new certificate may be issued in lieu thereof upon satisfactory proof of such loss or destruction, and upon the giving of security against loss to the Corporation by bond, indemnity or otherwise, to the extent deemed necessary by the Board of Directors or the Secretary or Treasurer.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">5.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transfer of Regulation S Securities.</U>  &#9;With respect to any and all equity securities offered and sold outside the United States pursuant to Rule 903(b)(3) of Regulation S under the Securities Act of 1933 (the "1933 Act"), as amended, the Corporation shall refuse to register any transfer of such securities not made in accordance with the provisions of Regulation S, pursuant to registration under the 1933 Act, or pursuant to an available exemption from such registration; provided, however, that if such securities are in bearer form or foreign law prevents the Corporation from refusing to register securities transfers, other reasonable procedures (such as a legend described in paragraph (b)(3)(iii)(B)(3) of Rule 903 of Regulation S) shall be implemented to prevent any transfer of such securities not made in accordance with the provisions of Regulation S.  With respect to any and all warrants offered and sold outside the United States pursuant to Rule
 903(b)(3) of Regulation S, and in accordance with Rule 903(b)(5) of Regulation S, such warrants may not be exercised within the United States and the securities issuable upon exercise of such warrants may not be delivered within the United States upon exercise, other than in offerings deemed to meet the definition of an "offshore transaction" pursuant to Rule 902(h) of Regulation S, unless registered under the 1933 Act or an exemption from such registration is available.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>BOOKS, RECORDS AND REPORTS</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Records of Corporate Meetings and Share Registers</U>.  The Corporation shall keep complete records of all proceedings of the Board of Directors and shareholders and shall keep at its registered office or principal place of business or at the office of its transfer agent or registrar, a record of its shareholders, giving the names and addresses of all shareholders, the number and class of shares held by each and the dates they acquired same.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Copies of Resolutions</U>.  Any person dealing with the Corporation may rely upon a copy of any of the records of the proceedings, resolutions, or votes of the Board of Directors or shareholders, when certified by the President, Vice President, Secretary or Assistant Secretary.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Books of Account</U>.  The Corporation shall keep appropriate and complete books of account.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Examination of Records</U>.  Upon presenting a written demand requesting examination and providing a detailed statement of the purpose of such examination, any shareholder of record or holder of record of voting trust certificates, for at least three (3) months or holder of record of, or the holder of record of voting trust certificates for, at least five percent (5%) of the outstanding shares of the Corporation shall have the right to examine for any proper purpose, in person or by his or her attorney or agent, during usual business hours, the Corporation's list of its shareholders, relevant records of accounts and minutes of meetings and make extracts therefrom.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>CORPORATE SEAL</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The seal of the Corporation, if any, shall be circular in form and bear the name of the Corporation and the word "seal."  The seal may be used by causing it to be impressed directly on the instrument or writing to be sealed, or upon an adhesive substance affixed thereto.  The seal on the certificates for shares or on any corporate obligation for the payment of money may be a facsimile, engraved or printed.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>EXECUTION OF INSTRUMENTS</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All corporate instruments and documents shall be signed or countersigned, executed, verified or acknowledged by such officer or officers or other person or persons as the Board of Directors may from time to time designate or authorize.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>ORDER OF BUSINESS</LI></P>
</U><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At all meetings of shareholders or of the Board of Directors, the order of business, as far as practicable, shall be as follows:</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roll call and certifying proxies.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proof of notice of meeting or waiver of notice.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reading and approval of unapproved minutes.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reports of officers and committees.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Election of officers or directors.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unfinished business.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New business.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjournment.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>REFERENCES TO ARTICLES OF INCORPORATION</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference to the Articles of Incorporation in these Bylaws shall include all amendments thereto or changes thereof unless specifically excepted.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>INDEMNIFICATION OF DIRECTORS AND OFFICERS</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Grant of Indemnification</U>.  Subject to Section 11.2, each person who was or is made a party or is threatened to be made a party to or is involved (including, without limitation, as a witness) in any threatened, pending, or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a "proceeding"), by reason of the fact that he or she is or was a director or officer of the Corporation or who, while a director or officer of the Corporation, is or was serving at the request of the Corporation as a director, officer, employee or agent of this or another corporation or of a partnership, joint venture, trust, other enterprise, or employee benefit plan, whether the basis of such proceeding is alleged action in an official capacity as a director or officer or in any other capacity while serving as a director, officer, employee or agent, shall be indemnif
ied and held harmless by the Corporation to the fullest extent permitted by applicable law, as then in effect, without the requirement of any further approval or finding by the shareholders, the Board of Directors, or independent legal counsel, against all expense, liability and loss (including attorneys' fees, costs, judgments, fines, ERISA excise taxes or penalties and amounts to be paid in settlement) reasonably incurred or suffered by such person in connection therewith, and such indemnification shall continue as to a person who has ceased to be a director or officer and shall inure to the benefit of his or her heirs, executors and administrators.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Limitations on Indemnification</U>.  Notwithstanding Section 11.1, no indemnification shall be provided hereunder to any such person to the extent that such indemnification would be prohibited by the Colorado Corporation Code or other applicable law as then in effect, nor, except as provided in Section 11.4 with respect to proceedings seeking to enforce rights to indemnification, shall the Corporation indemnify any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such person except where such proceeding (or part thereof) was authorized by the Board of Directors of the Corporation.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Advancement of Expenses</U>.  The right to indemnification conferred in this Article&nbsp;11 shall include the right to be paid by the Corporation the expenses incurred in defending any such proceeding in advance of its final disposition, except where the Board of Directors shall have adopted a resolution expressly disapproving such advancement of expenses; <U>provided</U>, <U>however</U>, that the payment of such expenses in advance of the final disposition of a proceeding shall be made only upon delivery to the Corporation of an undertaking, by or on behalf of such director or officer, to repay all amounts so advanced if it shall ultimately be determined that such director or officer is not entitled to be indemnified under this Article or otherwise.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Right to Enforce Indemnification</U>.  If a claim under Section 11.1 is not paid in full by the Corporation within sixty (60) days after a written claim has been received by the Corporation, or if a claim for expenses incurred in defending a proceeding in advance of its final disposition authorized under Section 11.3 is not paid within twenty days after a written claim has been received by the Corporation, the claimant may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim and, to the extent successful in whole or in part, the claimant shall be entitled to be paid also the expense, including reasonable attorneys fees, of prosecuting such claim.  The claimant shall be presumed to be entitled to indemnification hereunder upon submission of a written claim (and, in an action brought to enforce a claim for expenses incurred in defending any proceeding i
n advance of its final disposition, where the required undertaking has been tendered to the Corporation), and thereafter the Corporation shall have the burden of proof to overcome the presumption that the claimant is so entitled.  It shall be a defense to any such action (other than an action with respect to expenses authorized under Section&nbsp;11.3) that the claimant has not met the standards of conduct which make it permissible hereunder or under the Colorado Corporation Code for the Corporation to indemnify the claimant for the amount claimed, but the burden of proving such defense shall be on the Corporation.  Neither the failure of the Corporation (including its Board of Directors, independent legal counsel, or its shareholders) to have made a determination prior to the commencement of such action that indemnification of or reimbursement or advancement of expenses to the claimant is proper in the circumstances because he or she has met the applicable standard of conduct set forth herein or in the Colo
rado Corporation Code nor (except as provided in Section 11.3) an actual determination by the Corporation (including its Board of Directors, independent legal counsel, or its shareholders) that the claimant is not entitled to indemnification or to the reimbursement or advancement of expenses shall be a defense to the action or create a presumption that the claimant is not so entitled.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Nonexclusivity</U>.  The right to indemnification and the payment of expenses incurred in defending a proceeding in advance of its final disposition conferred in this Article&nbsp;11 shall not be exclusive of any other right which any person may have or hereafter acquire under any statute, provision of the Articles of Incorporation or the Bylaws, agreement, vote of shareholders or disinterested directors or otherwise.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification of Employees and Agents</U>.  The Corporation may, by action of its Board of Directors from time to time, provide indemnification and pay expenses in advance of the final disposition of a proceeding to employees and agents of the Corporation on the same terms and with the same scope and effect as the provisions of this Article&nbsp;11 with respect to the indemnification and advancement of expenses of directors and officers of the Corporation or pursuant to rights granted pursuant to, or provided by, the Colorado Corporation Code or on such other terms as the Board may deem proper.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Insurance and Other Security</U>.  The Corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the Corporation or another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the Corporation would have the power to indemnify such person against such expense, liability or loss under the Colorado Corporation Code.  The Corporation may enter into contracts with any director or officer of the Corporation in furtherance of the provisions of this Section and may create a trust fund, grant a security interest or use other means (including, without limitation, a letter of credit) to ensure the payment of such amounts as may be necessary to effect indemnification as provided in this Article.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment or Modification</U>.  This Article&nbsp;11 may be altered or amended as provided in Article&nbsp;13 at any time, but no such amendment shall have the effect of diminishing the rights of any person who is or was an officer or director as to any acts or omissions taken or omitted to be taken prior to the effective date of such amendment.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effect of Article</U>.  The rights conferred by this Article&nbsp;11 shall be deemed to be contract rights between the Corporation and each person who is or was a director or officer.  The Corporation expressly intends each such person to rely on the rights conferred hereby in performing his or her respective duties on behalf of the Corporation.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>FISCAL YEAR</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fiscal year of the Corporation shall be the calendar year.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>BYLAW AMENDMENTS</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bylaws may be amended, repealed or adopted by the majority vote of the Board of Directors at any regular or special meeting, subject to any limitations prescribed by law, the Articles of Incorporation of these Bylaws.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>MISCELLANEOUS STATUTORY RESTRICTION</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No loans shall be made by the Corporation to its directors unless first approved in the manner required by law.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>MISCELLANEOUS PROCEDURAL PROVISIONS</LI></P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors may adopt rules of procedure to govern any meetings of shareholders or directors to the extent not inconsistent with law, the Restated Articles of Incorporation, or these Bylaws, as they are in effect from time to time.  In the absence of any rules of procedures adopted by the Board of Directors, the Chairman of the meeting shall make all decisions regarding such procedures for any meeting.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"><LI><BR>
<BR>
<U>REPRESENTATION OF SHARES OF OTHER CORPORATIONS</LI></P></OL>

</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The President of the Corporation is authorized to vote, represent and exercise on behalf of the Corporation all rights incident to any and all shares of other corporations standing in the name of the Corporation.  Said authority may be exercised by such officer either in person or by proxy or power of attorney duly executed by said officer.</P></BODY>
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<TYPE>EX-3.1
<SEQUENCE>20
<FILENAME>exh31.htm
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<TITLE>ARTICLES OF AMENDMENT AND RESTATEMENT</TITLE>
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<U><P ALIGN="RIGHT">Exhibit 3.1</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">ARTICLES OF AMENDMENT AND RESTATEMENT</P>
<P ALIGN="CENTER">TO THE ARTICLES OF INCORPORATION OF</P>
<P ALIGN="CENTER">CROWN MINERALS CORP.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the provisions of the Colorado Corporation code, the undersigned corporation adopts the following Articles of Amendment and Restatement to its Articles of Incorporation:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST:  The present name of the corporation is Crown Minerals Corp.  As amended herein, the corporation's name will be Solitario Resources Corporation.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND:  These Articles of Amendment and Restatement supersede the original Articles of Incorporation and all amendments thereto.  These Articles of Amendment and Restatement correctly set forth the provisions of the Articles of Incorporation, as amended, of the corporation.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD:  The following amendment and restatement of the Articles of Incorporation was adopted by the shareholders of the corporation on November 23, 1993, in the manner prescribed by the Colorado Corporation code.  The number of shares voted for the amendment was sufficient for approval.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTH:  This amendment and restatement does not provide for any exchange, reclassification, or cancellation of issued shares.  It does not effect a change in the amount of stated capital.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTH:  The Articles of Incorporation are hereby amended by striking in their entirety Articles I through X inclusive and by substituting in lieu thereof the Articles as stated in the attached Restated Articles of Incorporation.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DATED this <U> 23rd </U> day of <U>   November         </U>, 1993.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">CROWN MINERALS CORP.</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">By</P>
<P ALIGN="CENTER">John A. Labate</P>
<P ALIGN="CENTER">Its Corporate Secretary</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">By</P>
<P ALIGN="CENTER">Christopher E. Herald</P>
<P ALIGN="CENTER">Its President</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">RESTATED ARTICLES OF INCORPORATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">OF</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<U><P ALIGN="CENTER">Name</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">The name of this corporation is Solitario Resources Corporation.</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">ARTICLE I</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">Duration</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">This corporation shall have perpetual existence.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">ARTICLE II</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">Purpose</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose for which this corporation is organized is the transaction of any or all lawful business for which corporations may be incorporated under the Colorado Corporation Code.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">ARTICLE III</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">Powers</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The powers of this corporation shall be those powers granted by the Colorado Corporation code, as amended, including any additional powers granted by amendments to said Code after the formation of this corporation, including the power, without limitation, to hold federal mineral leases, licenses, and prospecting permits of all kinds.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">ARTICLE IV</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">Capital stock</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.  The total number of shares which the corporation is authorized to issue is Sixty Million (60,000,000) shares of $.01 par value, consisting of Fifty Million (50,000,000) shares of Common Stock of $.01 par value and Ten Million (10,000,000) shares of Preferred Stock of $.01 par value.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.  The Preferred Stock may be issued from time to time in one or more series in any manner permitted by law and the provisions of the Restated Articles of Incorporation of the corporation, as determined from time to time by the Board of Directors and stated in the resolution or resolutions providing for the issuance thereof, prior to the issuance of any shares thereof.  The Board of Directors shall have the authority to fix and determine, subject to the provisions hereof, the rights and preferences of the shares of any series that is wholly unissued or is to be established.  Unless otherwise specifically provided in the resolution establishing any series, the Board of Directors shall further have the authority, after the issuance of shares of a series whose number it has designated, to amend the resolution establishing such series to decrease the number of shares of that series, but not below the number of shares of such series t
hen outstanding.  In the event that there are no issued or outstanding shares of a series of Preferred Stock which this corporation has been authorized to issue, unless otherwise specifically provided in the resolution establishing such series, the Board of Directors, without any further action on the part of the holders of the outstanding shares of any class or series of stock of this corporation, may amend these Restated Articles of Incorporation to delete all references to such series.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">ARTICLE V</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">No Preemptive Rights</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as may otherwise be provided by the Board of Directors, no holder of any shares of this corporation shall have any preemptive right to purchase, subscribe for or otherwise acquire any securities of this corporation of any class or kind now or hereafter authorized.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">ARTICLE VI</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">Directors</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.  This corporation shall have at least three (3) Directors (except that there need be only as many Directors as there are shareholders in the event the outstanding shares are held of record by fewer than three shareholders), the actual number to be prescribed in the Bylaws.  The number of Directors may be increased or decreased from time to time by amendment of the Bylaws.  However, no decrease shall have the effect of shortening the term of any incumbent Director.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.  Except as specified in paragraphs C and D of this Article VI, the term of the Directors shall be until the next annual meeting of the shareholders of this corporation after their election and until their successors shall have been elected and are qualified, unless removed in accordance with the provisions of paragraph E of this Article VI.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.  Upon the first election of Directors by the shareholders of this corporation after an increase in the number of Directors of this corporation to nine or more, the Directors shall be divided into three classes.  Each class shall be as nearly equal in number as possible.  The term of office of Directors of the first class shall expire at the first annual meeting of shareholders after their election, that of the second class shall expire at the second annual meeting after their election, and that of the third class shall expire at the third annual meeting after their election.  At each annual meeting after such classification, the number of Directors equal to the number of members of the class whose term expires at the time of such meeting shall be elected to hold office until the third succeeding annual meeting.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.  Any vacancies in the Board of Directors for any reason, and any newly created Directorships resulting from any increase in the number of Directors, may be filled only by the Board of Directors, acting by vote of a majority of the Directors then in office, although less than a quorum.  Any Director so chosen shall hold office for the unexpired term of such Director's predecessor in office or, if chosen to hold a newly created Directorship, shall hold office until the next succeeding annual election of Directors and until such Director's successor shall be elected and qualified.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.  Any Director or the entire board of Directors may be removed from office with or without cause, only by the affirmative vote of the holders of a majority of the outstanding shares of stock entitled to vote at an election of Directors.  No amendment to this paragraph E shall be effective to expand the circumstances under which a Director in office at the time such amendment becomes effective may be removed.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.  In evaluating an offer by another party to make a tender offer or exchange offer for securities of this corporation, or to effect a merger or consolidation involving this corporation, or to acquire all or substantially all the assets of this corporation, or otherwise to acquire control of this corporation, the Board of Directors, in considering the best interests of this corporation, may consider the extent to which any such offer furthers the purposes of this corporation as stated herein and may consider the social, legal, economic or other effects of any such offer upon employees, customers, suppliers and other constituencies of this corporation, communities in which this corporation is located or operates, and all other relevant factors.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.  Advance notice of nominations for the election of Directors, other than nominations by the Board of Directors or a committee thereof, and advance notice of business to be conducted at any annual meeting of shareholders, other than business proposed by the Board of Directors or a committee thereof, shall be given within the time and in the manner provided in the Bylaws.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="CENTER">ARTICLE VII</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">Special Meeting of Shareholders</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special meetings of the shareholders of this corporation may be called by the Chairman of the Board of Directors, the President, or any two or more Directors of this corporation for any purpose.  Further, a special meeting of the shareholders shall be held if the holders of not less than 25% of all the votes entitled to be cast on any issue proposed to be considered at such special meeting have dated, signed and delivered to the secretary of this corporation one or more written demands for such meeting, describing the purpose or purposes for which it is to be held.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">ARTICLE VIII</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">Actions Relating to the Bylaws</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bylaws of this corporation may be adopted, altered, amended or repealed or new bylaws enacted only:  (i) upon receiving the affirmative vote of a majority of the Board of Directors; or (ii) at any annual meeting of the shareholders, if notice thereof is contained in the notice of such meeting (or any special meeting thereof duly called for that purpose), by the affirmative vote of the holders of a majority of the voting power of the outstanding share of stock entitled to vote thereon, in addition to any other vote required for such action by law or the provisions of any other class or series of stock of this corporation.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">ARTICLE IX</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">Reserved Rights</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This corporation reserves the right to amend, alter, change, or repeal any provisions contained in its Articles of Incorporation in any manner now or hereafter prescribed or as permitted by statute.  All rights of shareholders of this corporation are granted subject to this reservation.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">ARTICLE X</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">No Cumulative Voting</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There shall be no cumulative voting of the shares in this corporation.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">ARTICLE XI</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">Limitation on Director Liability</P>
</U><P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the fullest extent permitted by Colorado law as now or hereafter in effect, a Director of this corporation shall not be liable to this corporation or its shareholders for monetary damages for his or her conduct as a Director.  Any amendment to or repeal of this Article XI shall not adversely affect any right of a Director of this corporation hereunder with respect to any acts or omissions of such Director occurring prior to such amendment or repeal.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">ARTICLE XII</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">Indemnification of Directors</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the fullest extent permitted by Colorado law as now or hereafter in effect, this corporation is authorized to indemnify any Director of this corporation.  The Board of Directors shall be entitled to determine the terms of such indemnification, including advance of expenses, and to give effect thereto through the adoption of Bylaws, approval of agreements, or by any other manner approved by the Board of Directors.  Any amendment to or repeal of this Article XII shall not adversely affect any right of a Director of this corporation hereunder with respect to any right to indemnification that arises prior to such amendment or repeal.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER">ARTICLE XIII</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">Registered Agent and Registered Office</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registered agent of this corporation in the State of Colorado is The Corporation Company.  The street address of the registered agent at the registered office of this corporation in the State of Colorado is 1675 Broadway, Denver, Colorado, 80202.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">John A. Labate,</P>
<P ALIGN="CENTER">Corporate Secretary</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">Christopher E. Herald</P>
<P ALIGN="CENTER">Its President</P>
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<TYPE>EX-10.16
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<FILENAME>exh1016.htm
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<TITLE>Mr. Robert J. Barrington</TITLE>
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<U><FONT SIZE=2><P ALIGN="RIGHT">Exhibit 10.16</P>
</U><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">28 January 2003</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">Mr. Ron Hieber</P>
<P ALIGN="LEFT">Divisional Director: Resource Management and Development &#9;&#9;</P>
<P ALIGN="LEFT">Anglo American Platinum Corporation Ltd.</P>
<P ALIGN="LEFT">55 Marshall Street, Johannesburg</P>
<P ALIGN="LEFT">PO Box 62179, Marshalltown 2107,</P>
<P ALIGN="LEFT">South Africa</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">RE: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;PEDRA BRANCA LETTER AGREEMENT</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">Pursuant to our discussions, Anglo American Platinum Corporation Ltd. (&quot;"Anglo&quot;") wishes to acquire the exclusive right to earn an undivided interest in the rights to explore and mine minerals in the Pedra Branca Property (the &quot;"Property&quot;") owned by Solitario Resources Corporation through its wholly-owned subsidiaries, Altoro Gold Corp., Altoro Gold (BVI) Corp., Altoro BVI and Minercao Altoro Brazil (collectively, &quot;"Solitario&quot;").  The Property is situated in the state of Ceara, Brazil. </P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&#9;Period&#9;&#9;&#9;&#9;&#9;&#9;&#9;&#9;  Expenditure&#9;     Anglos</P>
<P ALIGN="LEFT">&#9;&#9;&#9;&#9;Commitment(US$)     Interest</P>
<P ALIGN="LEFT">&#9;(i)     &#9;First six months after signature of this Agreement&#9;&#9;       500,000                        0%</P>
<P ALIGN="LEFT">&#9;(ii)    &#9;Second six months after a date agreed upon in the</P>
<P ALIGN="LEFT">&#9;&#9;Operating Agreement (&quot;Operating Agreement&quot;) </P>
<P ALIGN="LEFT">&#9;&#9;contemplated in Clause 3&#9;&#9;&#9;&#9;&#9;       500,000                        0%</P>
<P ALIGN="LEFT">&#9;(iii)   &#9;Second year as defined in the Operating Agreement&#9;&#9;    1,250,000                      15%</P>
<P ALIGN="LEFT">&#9;(iv)  &#9;Third year as defined in the Operating Agreement&#9;&#9;    1,750,000                      30%</P>
<P ALIGN="LEFT">&#9;(v)   &#9;Fourth year as defined in the Operating Agreement&#9;&#9;    3,000,000                      51%</P>
<P ALIGN="LEFT">&#9;&#9;Total Expenditure Commitment&#9;&#9;&#9;&#9;  $7,000,000                      51%</P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=590 ALIGN="LEFT" HSPACE=16 VSPACE=16>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Period</FONT></TD>
<TD WIDTH="56%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="23%" VALIGN="TOP" ROWSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Expenditure</P>
<P ALIGN="LEFT">Commitment (US$)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" ROWSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">Anglo's</P>
<P ALIGN="LEFT">Interest</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="56%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(i)</FONT></TD>
<TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">First six months after signature of this Agreement</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">500,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">0%</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(ii)</FONT></TD>
<TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Second six months after a date agreed upon in the</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="56%" VALIGN="TOP" ROWSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">Operating Agreement ("Operating Agreement")</P>
<P ALIGN="LEFT"> contemplated in Clause 3</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">500,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">0%</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(iii)</FONT></TD>
<TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Second year as defined in the Operating Agreement</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">1,250,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">15%</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(iv)</FONT></TD>
<TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Third year as defined in the Operating Agreement</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">1,750,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">30%</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(v)</FONT></TD>
<TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Fourth year as defined in the Operating Agreement</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">3,000,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">51%</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Total Expenditure Commitment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">$7,000,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">51%</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P><DIR>
<DIR>

<P ALIGN="LEFT">&#9;(d)&nbsp;&nbsp;&#9;For as long as the Agreement is in force, Anglo shall reimburse Solitario the holding costs for the Claims and other such land costs as are required for the conduct of exploration of the Property as required by Brazilian law excepting for the first 6 month period as set out in Clause 2(a)(i) above, during which period Solitario shall remain liable for such costs and provided that following the first six month period, such holding and land costs together with all expenditure already incurred by Anglo shall not exceed Anglo's total expenditure commitment as set out in Clause 2(a) above. In the event that such holding and land costs together with all expenditure already incurred does exceed Anglo's total expenditure commitment as set out in Clause 2(a),  Anglo will have been deemed to have met its expenditure commitment specified in clause 2(a)(v) above and Solitario shall be liable for its share of costs in excess of Anglo's total expenditure commitment in accordance with
 Clause 6 below.  All payments by Anglo for surface and mineral rights shall be included as  part of Anglo's expenditure  in terms of meeting its expenditure commitment as set out in Clause 2(a) above.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P></DIR>
</DIR>

<P ALIGN="LEFT">9.&nbsp;&nbsp;&#9;In the case that either party wishes to dispose of its interest in the property or its shares in Minera Altoro Brazil (BVI) Corp., the other party shall have a right of first refusal to acquire the interest or shares of the other.  Such right must be exercised within 90-days of notification that a sale has been negotiated with a third party. </P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">10. &nbsp;&nbsp;While Solitario is manager of the project, Solitario will prepare a monthly accounting of expenditures and submit this monthly statement to Anglo for reimbursement.  Anglo shall reimburse Solitario in United States funds within 20 working days of receipt of the monthly statement.  Anglo will have the right to audit all expenditures for appropriateness. </P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">11.&nbsp;&nbsp; Anglo and Solitario agree that if either party acquires an interest in new Claims within the Area of Interest (&quot;"AOI&quot;"), it must be offered to the non-acquiring party within 30 days of acquisition.  If the non-acquiring party accepts the newly acquired Claims interest within 30 days of notification, then the acquiring party shall transfer the accepted Claims to Property pertaining to this Agreement.  If the non-acquiring party declines the newly acquired Claims, the acquiring party shall retain 100% control of the newly acquired Claims.  During the earn-in period, in order for the non-acquiring party to accept the newly acquired Claims, the non-acquiring party will be required to purchase the Claims for 100% of the original cost of acquisition by the acquiring party. In the case whereby Anglo is the non-acquiring party and it chooses to accept the newly acquired Claims, then the costs of all such acquisitions during the earn-in period will be included as part of Angl
o's expenditure in terms of meeting its expenditure commitments as set out in Clause 2(a). Following the earn in period, should the non acquiring party choose to accept the newly acquired Claims then the non acquiring party shall be required to pay for the newly acquired Claims in relation to its interest in the Property   The AOI is defined as that area within 10 kilometers from the outer boundary of all Claims shown on Exhibits A and B.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">12.&nbsp;&nbsp; Upon the termination of participation in this Agreement by Anglo, the following will apply:</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Anglo withdraws prior to Anglo completing its 51% earn-in interest, Anglo will be   responsible for all accrued liabilities that occurred during the period of Anglo's participation in this Agreement.  Such accrued liabilities include,</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anglo is not responsible for any liabilities that occurred prior to its participation in this Agreement.  Such liabilities include, but are not limited to, reclamation of all existing surface disturbances, accrued taxes and social benefits of laborers and employees, accounts payable for work conducted on, or for the benefit of, the Property that were incurred prior to the date of this Agreement.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Anglo terminates its participation in this Agreement after Anglo has completed its 51% earn-in, then Anglo shall pay within 90 days to Solitario its share, in proportion to its interest in the Property either directly in the Property or through its stock ownership in Minera Altoro Brazil (BVI) Corp. or such other manner as contemplated in Clause 5(a), of all accrued liabilities that occurred during the period of Anglo's participation in this Agreement.  Such accrued liabilities include,</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reclamation of all surface disturbances caused by work conducted in terms of the approved work program contemplated in Clause 4,</P>
<P ALIGN="LEFT">(ii)&nbsp;&nbsp;&nbsp;&nbsp;taxes and social benefits of laborers and employees and property payments resulting from the termination of operations on the Property that become due within 30 days of termination. For the purposes of this agreement, social benefits are restricted to government-mandated benefits such as social security, health care, social insurance costs and severance costs.</P>
<P ALIGN="LEFT">(iii)&nbsp;&nbsp;&nbsp;accounts payable for work conducted on, or for the benefit of, the Property in terms of the approved work program contemplated in Clause 4.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">For sake of clarity, Anglo's responsibility for any liability in terms of this Clause will be limited to liabilities which arise from work conducted as part of the approved work program contemplated in Clause 4 or from the termination thereof.</P>
<P ALIGN="LEFT">&#9;</P>
<P ALIGN="LEFT">13.&nbsp;&nbsp; This agreement shall be subject to approval by the South African Reserve Bank and any other South African regulatory approvals and consents that may be necessary.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">The parties express their agreement to the terms of this Letter Agreement by signing below.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">Anglo American Platinum Corporation Ltd.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">By&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;_____________________<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">Solitario Resources Corporation</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">By&#9;____________________&#9;&#9;&#9;</P>
<P ALIGN="LEFT"></P>

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<TYPE>EX-10.17
<SEQUENCE>23
<FILENAME>exh1017.htm
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<TITLE>Spanish Language Contract Summary</TITLE>
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<U><P ALIGN="RIGHT">Exhibit 10.17</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">Original Option Spanish Language - Contract Summary in English as Provided Below</P>
</U><P ALIGN="LEFT"></P>
<B><U><P ALIGN="LEFT">Option to Purchase and Irrevocable Commitment to Transfer Mineral Concessions</P>
</B></U><P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">First</B>: The Parties</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>

<P ALIGN="LEFT">1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compania AndeSur S.A. a company legally established in Bolivia and represented by Mr. Gustavo Adolfo Miranda Pinaya and Mr. Carlos Guillermo Prieto Vogtschmidt, as Administrative Manager and Financial Manager respectively, duly authorized, appear before a Notary on May 8, 2001 as Optioner.</P>
<P ALIGN="LEFT"></P></DIR>
</DIR>

<P ALIGN="LEFT">1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr. Javier Ernesto Monerrey Uria, Property Owner ("Owner").</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">Second</B>: The owner warrants that he is the sole and legitimate owner of the following mineral concessions which are in good standing:</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>

<P ALIGN="LEFT">2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The mineral concession called "El Triunfo" consisting of 120 <I>pertinencias</I> which is located in Lambate, the Province of Sud Yungas, Department of La Paz, Bolivia, acquired by the Owner on the 25<SUP>th</SUP> of March 1997 and duly registered with the appropriate agencies.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The mineral concession called "La Poderosa" consisting of 76 <I>pertinencias</I>, also located in Lambate, duly registered and acquired by the owner on the same date.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The mineral concession called "La Flor" consisting of 76 <I>pertinencias</I>, also located in Lambate, duly registered and acquired by the owner on the same date.</P>
<P ALIGN="LEFT"></P></DIR>
</DIR>

<P ALIGN="LEFT">The preceding mineral concessions collectively referred to herein as the "Concessions".</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">Third</B>: The Owner, of his own free will irrevocably commits to transfer to the Optioner the Concessions at such time as the Optioner completes the stipulated conditions in the next clause.</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">Fourth</B>: This contract will have a term of five years from the date of subscription of this <I>Minuta</I> during which time the Optioner may exercise his option to acquire the Concessions according to the following terms:</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>

<P ALIGN="LEFT">4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On signing of this contract the Optioner will pay the Owner a sum of US$ 10,000 for the right to enter into the property and access data to perform a due diligence investigation for a period of 6 months.</P>
<P ALIGN="LEFT"></P><DIR>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During this period the Owner must resolve all technical and legal issues relating to the Concessions such as the past due payments and specifically registration of the Concessions with the <I>Registro de Derechos Reales,</P>
</I><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, the Optioner will have the responsibility to immediately make appropriate corrections to the recorded locations of the Concessions with the <I>Servicio Technico de Minas</I> discounting the resulting costs for this work from the initial payment of US$10,000.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In case that there exist technical and/or legal problems with the Concessions that cannot be resolved then this contract will be rendered null and void without further obligations for payments or work commitments.</P>
<P ALIGN="LEFT"></P></DIR>

<P ALIGN="LEFT">4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the six month anniversary of signing this contract the Optioner will pay to the Owner the sum of US$15,000.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the twelve month anniversary of signing this contract the Optioner will pay to the Owner the sum of US$25,000.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the twenty-fourth month anniversary of signing this contract the Optioner will pay to the Owner the sum of US$35,000.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the thirty-sixth month anniversary of signing this contract the Optioner will pay to the Owner the sum of US$45,000.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">4.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the Forty-eighth month anniversary of signing this contract the Optioner will pay to the Owner the sum of US$55,000.</P>
<P ALIGN="LEFT"></P></DIR>
</DIR>

<P ALIGN="LEFT">The above payments total US$185,000. The mentioned payments, apart from those indicated in the first paragraph of this clause, will give the Optioner the exclusive right to explore for minerals on the Concessions at his discretion including pilot scale metallurgical tests.  Whatever quantity of ore generated during the term of this contract through the exploration or pilot scale testing will be the property of the Optioner.</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">Fifth</B>: Option Price</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>

<P ALIGN="LEFT">5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Optioner decides to exercise his option to purchase the Concessions, he will pay the Owner the sum of US$1,000,000.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Option payment will be made at the time of signing of the transfer of ownership.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Optioner has the right to exercise the option to purchase at any time during the term of this contract not having any obligation to pay the owner any other payments thereafter nor any pro-rated payments for the time between the last payment and the date on which the option was exercised.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">5.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Optioner will notify the Owner in writing of his intention to exercise the purchase option which will require the Owner to proceed immediately with the subscription of the documentation for transfer of ownership.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">5.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also, the annual work commitments indicated in the following clause will no longer be in effect once the Optioner has exercised the option to purchase.</P>
<P ALIGN="LEFT"></P></DIR>
</DIR>

<B><P ALIGN="LEFT">Sixth</B>: During the term of this contract the Optioner commits to expenditures for exploration work the following minimum amount for each contract year: </P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the first year a sum of US$100,000.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the second year a sum of US$200,000.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the third year a sum of US$400,000.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fourth year a sum of US$600,000.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">6.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fifth year a sum of US$1,000,000.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">These expenditures are simply a projection that the Optioner estimates during the term of the contract. In case that, in whatever year, an expenditure exceeds the amount projected this amount exceeding the commitment will be applied to the following year.</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">Seventh</B>:</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>

<P ALIGN="LEFT">7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Optioner can execute exploration work on the Concessions that he deems appropriate without limitation and, if the work results in the production of ore, it is reiterated that it is the property of the Optioner.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the same time the Owner has the right to conduct whatever production work on the Concessions at his discretion so long as the quantity of ore does not exceed six thousand tons of ore per year and under the condition that it does not interfere with the work of the Optioner.  This right of the Owner to limited exploitation is restricted to the Owner himself and cannot be transferred to another person.</P>
<P ALIGN="LEFT"></P></DIR>
</DIR>

<B><P ALIGN="LEFT">Eighth</B>:</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>

<P ALIGN="LEFT">8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Optioner, during the term of the contract, is obligated to maintain the annual payments for the <I>Patentes Mineras</I> for the Concessions. </P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The payments for the <I>Patentes Mineras</I> can be credited against the work commitments provided for in the fifth Clause.</P>
<P ALIGN="LEFT"></P></DIR>
</DIR>

<B><P ALIGN="LEFT">Ninth</B>: It is agreed between the parties that on the termination of this contract, for whatever reason, a copy of all of the data obtained by the Optioner such as general work for the benefit of exploration, will be delivered to the Owner without cost.</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">Tenth</B>:</P>
<P ALIGN="LEFT"></P><DIR>
<DIR>

<P ALIGN="LEFT">10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Owner guarantees the free use and security of the Concessions and commits to maintain the property in good standing without encumbrances.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">10.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, the Owner guarantees the peaceful possession of the Optioner with respect to the Concessions and has the exclusive responsibility for their legal and administrative defense.</P>
<P ALIGN="LEFT"></P></DIR>
</DIR>

<B><P ALIGN="LEFT">Eleventh</B>:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Optioner can cede or transfer to third persons the (rights under) this contract at whatever time during its term, simply having to communicate this act in writing to the Owner who cannot oppose it under any circumstances. The transfer of the contract will require that all of the rights of the Owner be unaltered.</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">Twelfth</B>:</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">12.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The contract will be dissolved for the following reasons:</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The validity of the Concessions is not valid or opposed by third parties.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The contract is dissolved by law.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">12.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In a similar manner the contract will terminated:</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By unilateral decision of the Optioner, at whatever time during the term of the contract, in which case he will notify the Owner in writing terminating all further rights and obligations between the parties (except for those in the eighth clause).</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">Thirteenth</B>:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At such time as the Optioner notifies the Owner of exercising the option to purchase, the Owner will be obligated to sign the document of transfer.  All of the expenses relating to the transfer will be to the account of the Optioner.</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">Fourteenth</B>:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties agree that this contract is a valid private contract in the case that it is elevated to a public document.</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">Fifteenth</B>:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According to Bolivian Law the Concessions are a <I>Bien Ganancial</I> (property acquired during marriage), the senora Maritza Arce de Monterrey, of legal age and with <I>Carnet de Identidad</I> 305976 LP, as legal wife of the Owner, expresses her agreement with all and each of the clauses in this contract.</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">Sixteenth</B>:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties give their agreement to all and each of the preceding clauses, obliging to strict conformance, sign an original and two copies at the bottom.</P>
<I><P ALIGN="LEFT">Senor Notario,</I> prepare the document as is the custom.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">La Paz, 31<SUP>st</SUP> of July, 2003</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">Signatures:</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">Javier Monterrey Uria</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">Maritiza Arce de Monterrey</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<B><P ALIGN="LEFT">For the Optioner:</P>
</B><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">Gustavo A. Miranda P.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">Carlos G. Prieto V.</P></BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>24
<FILENAME>infostm2.htm
<TEXT>
<HTML>
<HEAD>
<META NAME="Generator" CONTENT="Microsoft Word 10.0">
<TITLE>Dear Shareholder:</TITLE>
<META NAME="Template" CONTENT="C:\Documents and Settings\paula\Application Data\Microsoft\Templates\EDGARizr.dot">
</HEAD>
<BODY LINK="#0000ff" VLINK="#800080">

<FONT SIZE=2><P ALIGN="JUSTIFY">Dear  Shareholder:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">I am pleased to inform you that the Board of Directors of Crown Resources Corporation ("Crown") has approved a plan to spin-off its interest in Solitario Resources Corporation ("Solitario"), to the shareholders of Crown.  Solitario's common stock currently trades on the Toronto Stock Exchange under the symbol SLR.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The spin-off will allow the shareholders of Crown to directly participate in the value of our exploration properties in South America.  Crown has announced that it has entered into a Merger Agreement with Kinross Gold Corporation and we anticipate that Solitario's Management Agreement with Crown will terminate if the transaction, as contemplated by the Merger Agreement, is completed.  Solitario would then become a completely independent company. </P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">If you are a holder of Crown's common stock at the close of business on **, the Record Date for the spin-off, you will receive approximately ** shares of Solitario common stock for every share of Crown common stock that you own on the Record Date.  The final number of shares you receive will be determined on the Record Date.  For more information on the share computation, see "The Spin-off" in the information statement.  You will not be required to pay anything for the new shares or surrender any shares of Crown common stock.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The enclosed information statement describes the spin-off of the Solitario shares from Crown and contains important financial and other information about Solitario.  Please read it carefully.  If you have any questions regarding the spin-off, please contact James R. Maronick, Chief Financial Officer, or Christopher E. Herald, Chief Executive Officer, at 4251 Kipling Street, Suite 390, Wheat Ridge, Colorado 80033, (303) 534-1030.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Sincerely,</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">/s/ Christopher E. Herald</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Christopher E. Herald</P>
<P ALIGN="JUSTIFY">President, Chief Executive Officer and Director</P>
<P ALIGN="LEFT">Crown Resources Corporation</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<B><P ALIGN="CENTER">INFORMATION STATEMENT</P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER">DISTRIBUTION OF UP TO 9,633,585 SHARES OF COMMON STOCK</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">This information statement is being furnished in connection with the spin-off by Crown Resources Corporation ("Crown"), subject to the Release (defined herein), to holders of its common stock of up to 9,633,585 shares of common stock of Solitario Resources Corporation ("Solitario"), representing approximately 38.7% of the total outstanding shares of Solitario.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">If you are a holder of Crown's common stock at the close of business on ** (the "Record Date") for the spin-off, you will receive approximately ** shares of Solitario common stock for every share of Crown common stock that you own on the Record Date.   The final number of shares you receive will be determined on the Record Date.  For more information on the share computation, see The Spin-Off in the information statement.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">A stockholder vote is not required for the spin-off to occur, and stockholders have no appraisal rights in connection with the distribution.  <B>WE ARE NOT ASKING FOR A PROXY AND YOU ARE REQUESTED NOT TO SEND US A PROXY.</B>  To receive the shares of Solitario common stock to which you are entitled, you do not need to pay any cash or other consideration to Crown or to Solitario.  You do not need to surrender any shares of Crown common stock that you own, and the number of shares of Crown that you currently own will not change as a result of the spin-off.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In reviewing this statement, you should carefully consider the matters described under the caption "Risk Factors" beginning on page **.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved these securities or determined if this information statement is truthful or complete.  Any representation to the contrary is a criminal offense.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">This information statement does not constitute an offer to sell or the solicitation of an offer to buy any securities.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">If you have any questions regarding the spin-off, please contact James R. Maronick, Chief Financial Officer, or Christopher E. Herald, Chief Executive Officer, at 4251 Kipling Street, Suite 390, Wheat Ridge, Colorado 80033, (303) 534-1030.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">The date of this information statement is *</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="CENTER">TABLE OF CONTENTS</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=619>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">SUMMARY</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">4</FONT></TD>
</TR>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">RISK FACTORS</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">9</FONT></TD>
</TR>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">STATEMENT REGARDING FORWARD LOOKING STATEMENTS</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">12</FONT></TD>
</TR>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">THE SPIN-OFF</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">13</FONT></TD>
</TR>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">CAPITALIZATION</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">15</FONT></TD>
</TR>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">MARKET FOR OUR COMMON STOCK</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">16</FONT></TD>
</TR>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">DIVIDEND POLICY</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">17</FONT></TD>
</TR>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">SELECTED HISTORICAL CONSOLIDATED FINANCIAL AND OTHER DATA</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">18</FONT></TD>
</TR>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND<BR>
RESULTS OF OPERATIONS</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">20</FONT></TD>
</TR>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">BUSINESS</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">32</FONT></TD>
</TR>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">MANAGEMENT OF SOLITARIO RESOURCES CORPORATION</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">45</FONT></TD>
</TR>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">PRINCIPAL STOCKHOLDERS</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">49</FONT></TD>
</TR>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">DESCRIPTION OF CAPITAL STOCK</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">52</FONT></TD>
</TR>
<TR><TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">INDEX TO SOLITARIO RESOURCE CORPORATION'S CONSOLIDATED FINANCIAL<BR>
STATEMENTS</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">F-1</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="CENTER"></FONT><A HREF="#_Toc58632016"><FONT SIZE=2>SUMMARY&#9;</FONT><A HREF="#_Toc58632016">*</A></A>
<FONT SIZE=2><P ALIGN="LEFT"></FONT><A HREF="#_Toc58632017"><FONT SIZE=2>RISK FACTORS&#9;</FONT><A HREF="#_Toc58632017">*</A></A></P>
<FONT SIZE=2><P ALIGN="LEFT"></FONT><A HREF="#_Toc58632018"><FONT SIZE=2>STATEMENT REGARDING FORWARD LOOKING STATEMENTS&#9;</FONT><A HREF="#_Toc58632018">*</A></A></P>
<FONT SIZE=2><P ALIGN="LEFT"></FONT><A HREF="#_Toc58632019"><FONT SIZE=2>THE SPIN-OFF&#9;</FONT><A HREF="#_Toc58632019">*</A></A></P>
<FONT SIZE=2><P ALIGN="LEFT">CAPITALIZATON&#9;15</P>
<P ALIGN="LEFT"></FONT><A HREF="#_Toc58632020"><FONT SIZE=2>MARKET FOR OUR COMMON STOCK&#9;</FONT><A HREF="#_Toc58632020">*</A></A></P>
<FONT SIZE=2><P ALIGN="LEFT"></FONT><A HREF="#_Toc58632021"><FONT SIZE=2>DIVIDEND POLICY&#9;</FONT><A HREF="#_Toc58632021">*</A></A></P>
<FONT SIZE=2><P ALIGN="LEFT"></FONT><A HREF="#_Toc58632022"><FONT SIZE=2>SELECTED HISTORICAL CONSOLIDATED FINANCIAL AND OTHER DATA&#9;</FONT><A HREF="#_Toc58632022">*</A></A></P>
<FONT SIZE=2><P ALIGN="LEFT"></FONT><A HREF="#_Toc58632023"><FONT SIZE=2>MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTES OF   OPERATIONS&#9;</FONT><A HREF="#_Toc58632023">*</A></A></P>
<FONT SIZE=2><P ALIGN="LEFT"></FONT><A HREF="#_Toc58632024"><FONT SIZE=2>BUSINESS&#9;</FONT><A HREF="#_Toc58632024">*</A></A></P>
<FONT SIZE=2><P ALIGN="LEFT"></FONT><A HREF="#_Toc58632025"><FONT SIZE=2>MANAGEMENT OF SOLITARIO RESOURCES CORPORATION&#9;</FONT><A HREF="#_Toc58632025">*</A></A></P>
<FONT SIZE=2><P ALIGN="LEFT"></FONT><A HREF="#_Toc58632026"><FONT SIZE=2>PRINCIPAL STOCKHOLDERS&#9;</FONT><A HREF="#_Toc58632026">*</A></A></P>
<FONT SIZE=2><P ALIGN="LEFT"></FONT><A HREF="#_Toc58632027"><FONT SIZE=2>DESCRIPTION OF CAPITAL STOCK&#9;</FONT><A HREF="#_Toc58632027">*</A></A></P>
<FONT SIZE=2><P ALIGN="LEFT">INDEX TO SOLITARIO RESOURCE CORPORATION'S CONSOLIDATED FINANCIAL </P>
<P ALIGN="LEFT">STATEMENTS   &#9;F-1 </P>
<P ALIGN="CENTER"></P></P>
<B><P ALIGN="CENTER">SUMMARY </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In addition to this summary, you should read the entire information statement carefully, as well as those additional documents to which we refer you.  Unless otherwise indicated, all references in this Information Statement to dollars are to U.S. dollars.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">The Company</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Solitario was incorporated under the laws of the state of Colorado on November 15, 1984, as a wholly-owned subsidiary of Crown Resource Corp. of Colorado, ("CRCC") which is a wholly-owned subsidiary of Crown.  Prior to 1993, we had no activity.  As of December 9, 2003 we have 24,907,134 shares outstanding, of these, CRCC owns 9,633,585 shares or approximately 38.7%.  A total of 3,140,162 shares (the "Escrowed Shares") owned by CRCC are held with an escrow agent pursuant to an escrow agreement (the ""Escrow Agreement"") among CRCC, Montreal Trust Company of Canada, The Toronto Stock Exchange (the ""Exchange") and us, dated July 1, 1994.    Prior to October 2000 CRCC owned 57.3% of our outstanding shares.    In October 2000 we completed a plan of arrangement (the "Plan of Arrangement") whereby we issued 6,228,894 shares of our common stock to the shareholders of Altoro Gold Corp. ("Altoro") in exchange for 100% of the outstanding shares of Altoro.  On November 4, 2003, we completed a private
 placement to certain Canadian based funds managed by Sprott Asset Management of Toronto, Ontario of 1,500,000 common shares at a price of Cdn$1.20 per share for total proceeds of Cdn$1,800,000 or approximately $1,349,000.  As a result of the issuance of shares in connection with the Plan of Arrangement and the private placement, CRCC's ownership of our shares was reduced from 57.3% (immediately prior to the Plan of Arrangement) to 38.7% as of November 30, 2003.  </P>
<P ALIGN="JUSTIFY">Our corporate structure is as follows [jurisdiction of incorporation]  ownership percentage.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Solitario Resources Corporation [Colorado]</P><DIR>

<P ALIGN="JUSTIFY">- Altoro Gold Corp. [British Columbia, Canada] 100%</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Altoro Gold (BVI) Corp. [British Virgin Islands]  100%</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Minera Altoro (BVI) Ltd. [British Virgin Islands]100%</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Minera Andes (BVI) Corp. [British Virgin Islands] 100%</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Compania Minera Andes del Sur S.A. [Bolivia]  100%</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Minera Altoro Brazil (BVI) Corp. [British Virgin Islands]  100%</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Altoro Mineracao, Ltda. [Brazil] 100%</P>
<P ALIGN="JUSTIFY">- Minera Solitario Peru, S.A. [Peru)  100%</P>
<P ALIGN="JUSTIFY">- Minera Bongara, S.A. [Peru]  100%</P>
<P ALIGN="JUSTIFY">- Minera Soloco, S.A. [Peru]  100%</P>
<P ALIGN="JUSTIFY"></P></DIR>

<P ALIGN="JUSTIFY">We have been involved in the exploration for minerals in South America, focusing on precious and base metals, including gold, silver, copper and zinc in Peru and Argentina, and since October of 2000, with the acquisition of Altoro, platinum and palladium in Brazil and Bolivia.  We have held exploration concessions in Peru since 1993.  We held concessions in Argentina from 1993 to 1998. Prior to October 2000, our primary focus was on the acquisition, exploration and development of mineral properties located in Peru and Argentina, both on our own and through joint ventures with others, from initial discovery through advanced exploration.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">During the last five years we have held various mineral property leases and concessions in South America.  We hold concessions on the Bongara zinc project in Peru currently covering approximately 6,000 hectares.  The Bongara concessions are 100% owned by Solitario.  The concessions were held in a joint venture through January 2001 with Cominco, Ltd. of Vancouver, British Columbia ("Cominco").  We held concessions covering approximately 61,000 hectares on the Yanacocha property in Peru until April 2000.  Yanacocha was previously under joint venture with a unit of Placer Dome, Inc., of Vancouver, British Columbia until November 1999.  In April of 2000 we completed an agreement with Newmont Peru, Ltd., a wholly-owned subsidiary of Newmont Mining Corporation (both companies referred to as "Newmont"), whereby we sold our Yanacocha Property to Newmont for $6,000,000 and a sliding scale royalty that varies with the price of gold.  We currently hold concessions on the Sapalache and La Pampa gold p
roperties in Peru covering 1,800 and 3,400 hectares respectively.  Sapalache was previously under joint venture to AngloGold, Ltd., of Peru ("AngloGold").  Anglo Gold, after conducting exploration, elected to drop out of the joint venture in 2000.  In August 2002, we entered into a letter agreement with Bear Creek Mining Company of Tucson, Arizona ("Bear Creek") whereby Bear Creek can earn a 51% interest in the La Pampa property by spending $4.5 million over a five-year period.  Bear Creek may earn an additional 14% (for a total of 65%) after the initial earn-in by completing a bankable feasibility study.  Bear Creek has conducted surface sampling and trenching in 2003 and is planning a 1,000-meter core drilling program in early 2004.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">On January 28, 2003 we entered into an agreement with Anglo American Platinum Corporation, Ltd. ("Anglo Platinum")whereby Anglo Platinum may earn a 51% interest in the Pedra Branca Project, by spending $7 million on exploration at Pedra Branca over a four-year period.  Anglo Platinum agreed to a minimum expenditure of $500,000 during the first six months of the agreement.  Anglo Platinum can earn an additional 9% interest in Pedra Branca (for a total of 60%) by completing a bankable feasibility study.  Anglo Platinum can also earn an additional 5% interest in Pedra Branca (for a total of 65%) by arranging for financing to put the project into commercial production.  Anglo Platinum has met its minimum required expenditure for the first six months and is currently reviewing the results of the first six month (Phase one) exploration program, before making a decision to fund the second phase of the Pedra Branca Project exploration program.  If Anglo Platinum declines to continue, Solitario wil
l retain 100% of the Pedra Branca Project.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In August 2003, we signed an agreement (the "Option Agreement") to acquire a 100% interest in the Triunfo gold-silver-lead-zinc property in west-central Bolivia.  The property hosts a large mineralized area extending for at least 800 meters in length and up to 200 meters in width.  Terms of the Option Agreement call for escalating payments totaling $185,000 over a four-year period to the underlying owners.  The first payment of $10,000 has been made.  A 100% interest in the property can be acquired at anytime within a five-year timeframe for a one-time payment of $1.0 million.  Solitario plans to spend a minimum of $100,000 during the first year as part of its five-year, $2.3 million work commitment.  </P>
<B><P ALIGN="JUSTIFY"></P>
</B><P ALIGN="JUSTIFY">In October 2003, we acquired the La Tola project to explore for gold and possibly silver.  The project is located in southern Peru and consists of 11 concessions totaling 9,800 hectares.  We own a 100%-interest in the concessions without any underlying owners or royalties.  To date only surface sampling of rock outcrops has been conducted.  If the results of the sampling program are favorable, a core drilling program is planned for 2004.</P>
<P ALIGN="JUSTIFY">  </P>
<P ALIGN="JUSTIFY">As a result of the acquisition of Altoro, we acquired concessions and leases covering three properties; (i) the Pedra Branca platinum-palladium project in Brazil that currently encompasses approximately 69,244 hectares, of which approximately 10,000 hectares are subject to an underlying 2% net Smelter Return Royalty to Eldorado Gold Corp. of Vancouver, British Columbia;  (ii) the Rincon del Tigre platinum and palladium project in Bolivia, which encompassed approximately 52,000 hectares under lease, was drilled during 2001 and was determined not to have sufficient economic potential and was returned to the landowner during 2001; and (iii) the Tocantinzinho gold property in Brazil for which we held washing licenses covering approximately 4,000 hectares.  After compiling and evaluating geologic data of the Tocantinzinho property during 2001, we determined the property did not have sufficient economic potential and we did not renew our licenses on Tocantinzinho. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Strategy</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We have historically explored for mineral deposits through the location, purchase, lease or joint venture of early-stage exploration prospects.  We have focused our efforts on precious metal prospects including gold, silver and platinum-group metals.  In addition we have explored and acquired base-metal prospects including lead, zinc and copper.  We intend to continue this focus.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Upon acquiring an exploration property, we typically perform geologic evaluation and exploration efforts to determine if the project warrants further work including, but not limited to geologic mapping and sampling, geophysical surveys, trenching, and drilling.  If the results of this work indicate there is little or no geologic or mineral potential, the prospect is dropped and/or returned to its owner(s).  However if we believe the project warrants additional work, we either look to joint venture or sell the project to a larger mining company with more appropriate resources, both technical and financial, to further develop and or operate the property.  We also may choose to further advance the property independently through additional work that usually includes detailed exploration drilling.   We also evaluate more advanced projects that other companies or individuals control.  If our evaluation for this type of property is favorable, in exchange for ownership or majority control of a pro
perty we may either commit to spending significant amounts of capital on exploration and development or make purchase or option payments to the underlying owner(s).  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Risk Factors</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">You should carefully consider the risks described under "Risk Factors" below, as well as the other information contained in this information statement.  These risks include, but are not limited to, changing regulatory requirements in the countries that we operate in, political and economic uncertainty, market risks and financing risks.  In addition, as we pursue additional growth opportunities, we will be competing with many companies larger than ours and with greater financial and technical resources.  If one or more of these consequences occur, it could negatively impact our ability to successfully implement our business strategy.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Recent Developments</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">On November 4, 2003, we completed a private placement to certain Canadian based funds managed by Sprott Asset Management of Toronto, Ontario of 1,500,000 common shares at a price of Cdn$1.20 per share for total proceeds of Cdn$1,800,000 or approximately $1,349,000.  The additional shares reduced Crown's interest in us from 41.2% at September 30, 2003 to 38.7%. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">On November 20, 2003, Crown and Kinross Gold Corporation ("Kinross") announced that the two companies have executed an Acquisition Agreement and Agreement and Plan of Merger (the "Merger Agreement") whereby Kinross will acquire Crown and its 100%-owned Buckhorn Mountain gold deposit located in north central Washington State, USA, approximately 67 kilometers (42 miles) by road from Kinross' Kettle River gold milling facility.   Under the terms of the Merger Agreement, shareholders of Crown will receive 0.2911 shares of Kinross for each share of Crown.  The transaction contemplated by the Merger Agreement is subject to regulatory approvals, a minimum two-thirds approval at a special meeting of Crown shareholders and customary closing conditions.  It is the intent of Crown that the spin-off of the Solitario shares will take place prior to the completion of the acquisition by Kinross. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">On November 8, 2003 Crown announced that it would be distributing its (through CRCC) entire holdings of 9,633,585 shares of our common stock.  Of these shares, a total of 3,140,162 shares owned by CRCC are held with an escrow agent pursuant to the Escrow Agreement.  We have provided notice of and will hold a special meeting of our shareholders on December 29, 2003 where they will vote on approval of the release of the Escrowed Shares (the "Release").  Approval of the Release by our shareholders other than CRCC and its associates and affiliates (the "Disinterested Shareholders") will allow for CRCC to dividend our shares to Crown to enable Crown to dividend up to its entire holdings of 9,633,585 of our shares to Crown's shareholders.  If our Disinterested Shareholders do not approve the Release, the Escrowed Shares may not be available for dividend by Crown.</P>
<P ALIGN="LEFT"> </P>
<P ALIGN="JUSTIFY">As of December 9, 2003, we own 965,491 shares of Crown common stock and have warrants to acquire up to 3,057,143 additional shares of Crown common stock at prices between $0.60 and $0.75 per share.  In addition, we could acquire an additional 3,057,143 shares of Crown common stock through the conversion of the Crown Senior Notes.  Assuming the completion of the exchange of shares as contemplated by the Merger Agreement, the Release, all of Crown's convertible debentures are converted, all of Crown's options are exercised and all of Crown's warrants are exercised on a cashless basis at the market price of Crown common stock on December 9, 2003, of $2.55 per share, we estimate we would own approximately 6,251,206 shares of Crown, which would convert into approximately 1,819,726 shares of Kinross.  The Kinross shares would be valued at approximately $15.6 million, assuming the December 9, 2003 market price of $8.60 per share for each Kinross share.  See The Spin-Off  - Mechanics of the Spin-O
ff below.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Executive Offices</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Our principal executive offices are located at 4251 Kipling Street, Suite 390, Wheat Ridge, Colorado 80033.  Our telephone number at that address is (303) 534-1030.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Summary Financial Information</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The following table sets forth our summary consolidated historical financial information that has been derived from (i) the audited consolidated statements of operations and cash flows for our business for each of the three years ended December 31, 2002 and (ii) the unaudited consolidated statements of income and cash flows for our business for the nine months ended September 30, 2003 and 2002 and (iii) our unaudited consolidated balance sheet as of September 30, 2003.  The financial statements as of and for the nine months ended September 30, 2003 and 2002, in the opinion of management, reflect all adjustments, consisting of only normal recurring items, necessary to present fairly, in accordance with accounting principles generally accepted in the United States, the information for the periods.  You should read this information in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our historical consolidated financial statements an
d notes included elsewhere in this information statement.  The information set forth below is not necessarily indicative of our future results.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=5 WIDTH=494>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">Statement of operations data:</FONT></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended September 30,</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;(in thousands, except per share amounts)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">2002</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=23>
<B><FONT SIZE=2><P ALIGN="LEFT">Revenues:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Mineral property option proceeds</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Gain on sale of assets</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Interest income</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">238</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">100</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">238</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">100</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Costs and expenses:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Exploration expense</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">170</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">711</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Depreciation, depletion and amortization</DIR>
</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">18</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">34</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;General and administrative (1)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">218</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">300</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Management fees (1)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">275</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">365</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Asset write-downs</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">  Loss on sale of assets</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">26</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">45</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Other (net)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">707</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,455</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">    Net (loss)</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(469)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;(1,355)</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19>
<B><FONT SIZE=2><P ALIGN="LEFT">Loss per common share:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">  Basic and diluted </FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.02)</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.06)</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="LEFT">Weighted average shares outstanding:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT"> &nbsp;Basic and diluted</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,407</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,407</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Other financial data:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">  Net cash used in operating activities</DIR>
</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(723)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(1,369)</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT"> Net cash provided by (used in) investing activities</DIR>
</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">(340)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">327</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT"> Net cash provided by financing activities</DIR>
</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=5 WIDTH=570>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">Statement of operations data:</FONT></TD>
<TD WIDTH="41%" VALIGN="BOTTOM" COLSPAN=7>
<FONT SIZE=2><P ALIGN="CENTER">Year ended December 31,</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;(in thousands, except per share amounts)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">2002</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">2001</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">2000</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=23>
<B><FONT SIZE=2><P ALIGN="LEFT">Revenues:</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=23><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=23><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Mineral property option proceeds</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Gain on sale of assets</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">5,811</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Interest income</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">137</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">236</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">360</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">137</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">236</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">6,271</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3 HEIGHT=9><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="LEFT">Costs and expenses:</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Exploration expense</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">907</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,464</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,182</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2><DIR>

<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Depreciation, depletion and amortization</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">40</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">49</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">18</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;General and administrative (1)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">372</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">511</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">372</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Management fees (1)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">449</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">590</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">414</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Asset write-downs</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,274</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">  Loss on sale of assets</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">39</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Other (net)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">5</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">1,807</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">3,893</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,986</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3 HEIGHT=9><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="LEFT">    Net income (loss)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;(1,670)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;(3,657)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,285</FONT></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=9 HEIGHT=19>
<B><FONT SIZE=2><P ALIGN="LEFT">Income (loss) per common share:</B></FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P ALIGN="LEFT">  Basic</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;(0.07)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.16)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.24</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P ALIGN="LEFT">  Diluted</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;(0.07)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.16)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.23</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9>
<B><FONT SIZE=2><P ALIGN="RIGHT">Weighted average shares outstanding:</B></FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT"> &nbsp;Basic</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">23,407</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,387</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">18,163</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">  Diluted</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">23,407</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,387</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">18,350</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Other financial data:</B></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">  Net cash used in operating activities</DIR>
</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=5>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(1,654)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(2,415)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(1,517)</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT"> Net cash provided by (used in) investing activities</DIR>
</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=5>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">336</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">(1,196)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">5,286</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT"> Net cash provided by financing activities</DIR>
</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">179</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=492>
<TR><TD WIDTH="68%" VALIGN="BOTTOM" HEIGHT=61>
<FONT SIZE=2><P ALIGN="JUSTIFY">Balance sheet data (in thousands):</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=61><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" HEIGHT=61>
<FONT SIZE=2><P ALIGN="CENTER">As of September 30, 2003, Historical</FONT></TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Cash and cash equivalents</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;342</FONT></TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Working capital (2)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,224</FONT></TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Total assets</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">8,883</FONT></TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Total debt</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Stockholders' equity</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">8,834</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to a management and technical services agreement (the "Management Agreement"), as modified, between Crown and us, we have reimbursed Crown for direct out-of-pocket expenses; payment of between 25% and 75% of executive and administrative salaries and benefits, rent, insurance, and investor relations costs and payment of certain indirect costs and expenses paid by Crown on our behalf.  Upon the spin-off of our shares and upon the completion of the merger between Crown and Kinross, we anticipate the Management Agreement will be terminated, and the above noted costs will be paid directly by us from that date forward.  These costs will result in an increase in general and administrative costs related to salaries and benefits for employees, rent, audit and legal fees, shareholder relations costs, travel and office expenses.  Under the Management Agreement, these costs have been shared by Crown and included in the management fees.  . We have estimated tha
t general and administrative costs, on a pro forma basis, would have increased by approximately $510,000 for the nine months ended September 30, 2003 and would have increased by approximately $675,000 for the year ended December 31, 2002.  This increase in costs would have been partially offset, on a pro forma basis, by a reduction in management fees of $275,000 for the nine months ended September 30, 2003 and by a reduction in management fees of $414,000 for the year ended December 31, 2002.  In the event that the Kinross transaction is not completed, we anticipate that we would continue to operate under the Management Agreement with Crown.  See "Management of Solitario Resources Corporation" for further discussion.</P>
<P ALIGN="LEFT">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Working capital consists of current assets less current liabilities.</P>
<B><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">RISK FACTORS </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">An investment in our common shares involves certain risks.  In addition to considering the other information in this Information Statement, you should consider carefully the following factors.  If any of these risks occur, or if other risks not currently anticipated or fully appreciated occur, our business and prospects could be materially adversely affected, which could have an adverse effect on the trading price for our shares.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">The market price of our common stock has fluctuated and may decline after the spin-off.</P>
<P ALIGN="JUSTIFY"></P>
</B><P ALIGN="JUSTIFY">The market price of our shares has historically fluctuated in a large range.  Please see "Market for Our Common Stock".   The market price of our common stock may decline as a result of new holders from the distribution of our shares to holders of Crown common stock selling our shares.  In addition, the price of our common stock may be affected by many factors, including adverse change in our business, a decline in gold or other commodity prices, and general economic trends.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="LEFT">Mineral exploration and mining by its nature involves risks.</P>
</B><P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">The exploration and development of mineral deposits involves significant financial and other risks over an extended period of time, which even a combination of careful evaluation, experience, and knowledge may not eliminate.  While discovery of a mineral-bearing structure may result in substantial rewards, few properties that are explored are ultimately developed into producing mines.  Major expenses are required to establish reserves by drilling and to construct mining and processing facilities at a site.  It is impossible to ensure that the current or proposed exploration programs on properties in which we have an interest will result in profitable commercial mining operations.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Our operations are subject to the hazards and risks normally incident to exploration, development, and production of a mineral deposit, any of which could result in damage to life or property, environmental damage and possible legal liability for such damage.  Our operations may be subject to prolonged disruptions due to weather conditions depending on the location of operations in which we have interests.  Hazards, such as unusual or unexpected formations, rock bursts, pressures, cave-ins, flooding, or other conditions may be encountered in the drilling and removal of material.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Whether a mineral deposit will be commercially viable depends on a number of factors, some of which are the particular attributes of the deposit, such as its size and grade, costs and efficiency of the recovery methods that can be employed, proximity to infrastructure, financing costs and governmental regulations, including regulations relating to prices, taxes, royalties, infrastructure, land use, importing and exporting of gold, and environmental protection.  The effect of these factors cannot be accurately predicted, but the combination of these factors may result in not receiving an adequate return on our invested capital.</P>
<B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We have a history of losses.</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We have reported losses of  $1,670,000, and $3,657,000 for the years ended December 31, 2002 and 2001, respectively, and a loss of $469,000 for the nine months ended September 30, 2003.  We can provide no assurance that we will be able to operate profitably in the future, which will depend on our ability to acquire, explore and develop or sell economic mineral deposits.</P>
<B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Our operations outside of North America may be adversely affected by changing political, local and economic conditions.</P>
<P ALIGN="JUSTIFY"></P>
</B><P ALIGN="JUSTIFY">Our mineral properties are located in South America and consist primarily of mineral concessions granted by national governmental agencies and are held 100% by us or under lease or option or purchase agreements.  The properties are located in Peru, Bolivia and Brazil.  We act as operator on all of our properties that are not held in joint ventures.  The success of projects held under joint ventures that are not operated by us is substantially dependent on the joint venture partner.</P>
<B><P ALIGN="JUSTIFY"></P>
</B><P ALIGN="JUSTIFY">Properties held by us are subject to the laws of Peru, Bolivia and Brazil, where we operate.  These countries have, from time to time, experienced periods of political and economic instability.  Foreign properties, operations and investments may be adversely affected by local political and economic developments, including nationalization, exchange controls, currency fluctuations, taxation and laws or policies, as well as, laws and policies of the United States affecting foreign trade, investment and taxation.   Certain other regions in which we may conduct operations have also been subject to political and economic instability, creating uncertainty and the potential for a loss of resources located in these regions.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">We have limited capital resources.</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The capital required for exploration and development of properties is substantial.  We have financed operations through utilization of joint venture arrangements with third parties (generally providing that the third party will obtain a specified percentage of our interest in a certain property in exchange for the expenditure of a specified amount), the sale of interests in properties or other assets, and the issuance common stock.  We will need to raise additional cash, or enter into a joint venture arrangement, in order to fund the development and initial operation of any property we desire to develop.  New financing or acceptable joint venture partners may or may not be available on a basis that is acceptable to us.  Accordingly, there is no assurance that we will be successful in our attempt to develop any project we now have or may discover in the future.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">We may be unable to compete effectively in the mining industry.</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">A large number of companies are engaged in the exploration and development of mineral properties, many of which have substantially greater technical and financial resources than us.  Therefore, we may be at a disadvantage with respect to many of our competitors in the acquisition, exploration and development of mining properties.  The marketing of minerals is affected by numerous factors, many of which are beyond our control.  These include the price of the raw or refined minerals in the marketplace, imports of minerals from other countries, the availability of adequate milling and smelting facilities, the price of fuel, the availability and the cost of labor, and the market price of competitive minerals.</P>
<B><U><P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">The title to properties we own may be uncertain and subject to risks.</P>
</B><U><P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">In connection with the acquisition of our properties, we conduct limited reviews of title and related matters, and obtain certain representations regarding ownership.  Although we believe we have conducted reasonable investigations (in accordance with standard mining practice) of the validity of ownership, there can be no assurance that we hold good and marketable title to all of our properties.</P>
<U><P ALIGN="JUSTIFY"></P>
</U><B><P ALIGN="JUSTIFY">We require the issuance and renewal of licenses and permits in order to conduct our business.</P>
</B><U><P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">The development, production and sale of minerals is subject to federal, state, provincial and local regulation in a variety of ways, including environmental regulation and taxation.  Federal, state, and local environmental regulations generally have a significant effect on all companies, including ours, engaged in mining or other extractive activities, particularly with respect to the permitting requirements imposed on such companies, the possibilities of project delays, and the increased expense required to comply with such regulations.  We believe we are in substantial compliance with all such regulations in all the jurisdictions in which we operate. </P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">We have no mineral reserves.</P>
<P ALIGN="JUSTIFY"></P>
</B><P ALIGN="JUSTIFY">We have no reported mineral reserves.  Any future mineral reserves will only come from extensive additional exploration and engineering and evaluation of existing or future mineral properties we own.  There can be no assurance that we will report mineral reserves in the future.</P>
<B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We are subject to extensive environmental and regulatory rules and regulations.</P>
<P ALIGN="JUSTIFY"></P>
</B><P ALIGN="JUSTIFY">Existing and future legislation and regulations emphasizing the protection of the environment may cause our activities to be more closely regulated to further the goal of environmental protection.  Such legislation and regulations, as well as future interpretation of existing laws, may require substantial increases in capital and operating costs to us and delays, interruptions, or a termination of operations, the extent of which we cannot predict.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Our insurance coverage may not be complete and may not be available in the future. </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The mining industry is subject to risks of human injury, environmental liability and loss of assets.  We maintain insurance coverage consistent with industry practice, but can give no assurance that this level of insurance will cover all risks of harm to our business associated with being involved in the mining business, nor can any assurance be given that we will be able to obtain adequate coverage in the future.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="LEFT">Our success is dependent on gold and commodity prices over which we have no control.</P>
</B><P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">Our operations will be significantly affected by changes in the market price of gold and other commodities.  These prices fluctuate on a daily basis and are affected by numerous factors beyond our control.  The supply and demand for gold and other commodities, the level of interest rates, the rate of inflation, investment decisions by large holders of these commodities, including governmental reserves, and stability of exchange rates can all cause significant fluctuations in prices.  Such external economic factors are in turn influenced by changes in international investment patterns and monetary systems and political developments.  The prices of commodities have fluctuated widely and future serious price declines could cause future commercial production to be impractical.  Depending on the price of gold and other commodities, our estimated future cash flow from mining operations may not be sufficient to cover estimated costs of production and capital expenditures. </P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Our business is dependent on key executives.</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We are dependent on the services of key executives, including the Chief Executive Officer and a small number of highly skilled and experienced executives and personnel.  The loss of these persons or our inability to attract and retain additional highly skilled employees may adversely affect our business and future operations.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">We will be required to comply with additional reporting requirements of United States securities laws.</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Upon completion of the spin-off, we will be a reporting issuer under both the Canadian and U.S. jurisdictions.  As a reporting issuer in the U.S., we will be required to comply with a variety of new rules and regulations specific to the U.S.  We expect these new rules and regulations to increase our legal and financial compliance costs, and to make some activities more difficult, time consuming and/or costly.  These new rules and regulations could also make it more difficult for us to attract and retain qualified members of our board of directors, particularly to serve on our audit committee, and qualified executive officers. </P>
<B><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">STATEMENT REGARDING FORWARD LOOKING STATEMENTS </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">This information statement includes forward-looking statements based on our current expectations and projections about future events.  Statements which are predictive in nature and that depend upon or refer to future events or conditions, or that include words such as "will", "would", "should", "plans", "likely", "expects", "anticipates", "intends", "believes", "estimates", "thinks", "may", and similar expressions, are forward-looking statements.  These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements.  These factors include, among other things, those matters discussed under the caption "Risk Factors", as well as the following:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">the consequences of any change in control of our company, including those resulting from the spin-off;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">uncertainties inherent in the exploration and evaluation of mining properties;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">unexpected future capital expenditures (including the amount and nature thereof);</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">impact of mineral price variations;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">the effects of competition;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">the success of our risk management activities;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">the availability (or lack thereof) of acquisition or combination opportunities;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">the impact of future laws and governmental regulations;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">environmental liabilities that are not covered by an effective indemnity or insurance; and</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">the effect of general economic, market or business conditions.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">All forward-looking statements in this information statement are made as of the date hereof, and you should not place undue certainty on these statements without also considering the risks and uncertainties associated with these statements and our business that are addressed in this information statement.  Moreover, although we believe the expectations reflected in the forward-looking statements are based upon reasonable assumptions, we can give no assurance that we will attain these expectations or that any deviations will not be material.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="CENTER">THE SPIN-OFF </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Reasons for the Spin-Off</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">On November 19, 2003, the Crown Board of Directors formally approved the spin-off.  The spin-off will allow the shareholders of Crown to directly participate in the results of our exploration activities and the value of our South American assets.  We control a well-diversified portfolio of metal-bearing properties, including properties with potential to host gold, silver, platinum, palladium and zinc.  Our properties also vary substantially in the amount of exploration work that has been conducted on each property, from very early-staged exploration properties with only surface sampling, to advanced staged exploration properties with detailed drilling that defines mineralization within the underlying rock formations.    We also anticipate, that our common shares will have a wider distribution after the spin-off with Solitario common shares being distributed to approximately 2,000 shareholders of Crown.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Results of the Spin-off</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Assuming the Release and the completion of the Kinross transaction following the spin-off, Crown will have no ownership interest in us other than the number of shares it may need to retain in order to meet its obligation to deliver our shares to the holders of Crown warrants upon the exercise of those warrants (the "Retained Shares"); we will be an independent company with no management ties to Crown or Kinross.   In the event that the Kinross transaction is not completed, we anticipate that we would continue to operate under the Management Agreement with Crown.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Currently our shares are listed on the Toronto Stock Exchange under the symbol SLR.  There is no current trading market for our stock in the United States.  After the spin-off, we anticipate that our stock will also be traded in the United States on the OTC Bulletin Board (OTCBB).  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Mechanics of the Spin-Off </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Assuming the Release, Crown will accomplish the spin-off by distributing, other than the Retained Shares, its entire holdings of our common stock, 9,633,585 shares, to Crown's shareholders.  Each Crown shareholder as of the close of business on the Record Date will automatically participate in the spin-off.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The final number of shares to be distributed to each Crown shareholder will be known on the Record Date, as this number is dependent upon the number of shares currently outstanding and the number of shares issued as a result of conversion of outstanding Crown convertible debt and exercise of Crown warrants prior to the Record Date.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The number of Retained Shares will equal the number of our shares that any outstanding Crown warrants will be entitled to receive as if they had exercised their Crown warrants on a cashless exercise on the Record Date.  Crown is required to retain these shares until the Crown warrants are exercised or exchanged, at which time the Retained Shares will be delivered to the Crown warrant holders.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Under the terms of the Crown warrants, as amended, the warrant holder has the option of taking a cashless exercise, in which the holder is allowed to take a reduced number of Crown shares without the payment of any cash to Crown.  The number of Crown shares issuable upon a cashless exercise is calculated by: (i) taking the total number of shares the warrant may be exercised for times the net result of (ii) the closing market price of Crown common stock on the exercise date less the exercise price; with the product of (i) times (ii) divided by the closing market price of Crown common stock on the exercise date.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Prior to the Record Date the number of Crown shares that will be outstanding, how many Crown warrants will be exercised, and what method of exercise will be chosen (cash vs. cashless) is unknown.  However we have estimated the number of Crown common shares to be outstanding on the Record Date by assuming all of Crown's convertible debentures are converted, and all of Crown's options are exercised and all of Crown's warrants are exercised on a cashless basis at the market price of Crown common stock on December 9, 2003, of $2.55 per share.  Based upon those assumptions, we have estimated that on the spin-off date, those Crown shareholders will receive approximately 0.21 shares of our common stock for each share of Crown common stock held as of the Record Date.   If any holders of Crown warrants exercise their warrants on a cash basis the number of shares of our common stock distributed to each holder of Crown common stock would be lower.  Crown expects that the spin-off will take place on o
r about **, 2004.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No fractional shares will be issued and no cash payments will be made in lieu of fractional shares.  Crown will retain any shares not distributed as fractional shares.  We estimate the total number of our shares from undistributed fractional shares will be less than 1,000 shares.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">Assuming the Release, as soon as practicable on or after the spin-off date, Crown will deliver to the transfer agent certificates representing all the shares of our common stock to be distributed in the spin-off.  The transfer agent will then mail certificates representing the shares of our common stock to common stockholders of Crown as of the Record Date.  Crown will retain the Retained Shares until such time as the warrants are exercised or exchanged for Kinross shares in accordance with the terms of the Crown warrants.   Where appropriate, these transactions may take place as book-entry only, without the delivery of any certificates.  No Crown stockholder will be required to pay cash or other consideration for any shares of our common stock received in the spin-off, or to surrender or exchange shares of Crown common stock to receive our common stock.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">As of December 9, 2003, we own 965,491 shares of Crown common stock and have warrants to acquire up to 3,057,143 additional shares of Crown common stock at prices between $0.60 and $0.75 per share. In addition, we could acquire an additional 3,057,143 shares of Crown common stock through the conversion of our Crown Senior Notes.  Prior to the Record Date, we intend to convert all of our Crown Senior Notes into an additional 3,057,143 shares of Crown common stock and to exercise all of our warrants, on a cashless basis.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Assuming the Release, we have estimated that on the Record Date we will own approximately 6,251,206 shares of Crown  (assuming we have converted all of our Crown debt and we have exercised all of our warrants on a cashless basis using the market price of Crown common stock on December 9, 2003 of $2.55 per share).  Accordingly we have estimated we will receive approximately 1,316,504 shares of our own common stock as a result of the spin-off.  These shares will be retired and have the status of authorized but unissued shares of our common stock.  This would have the result of reducing the amount of issued and outstanding shares of common stock by the amount of common stock we receive as a result of the spin-off and increasing the percentage ownership interest in us for each of our shareholders.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">U.S. Federal Income Tax Consequences of the Spin-Off</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The following is a summary description of the material U.S. federal income tax consequences of the spin-off.  This summary is not intended as a complete description of all of the tax consequences of the spin-off and does not discuss tax consequences under the laws of state, local or foreign governments or any other jurisdiction.  Moreover, the tax treatment of a stockholder may vary, depending upon the stockholder's particular situation.  In this regard, special rules not discussed in this summary may apply to some of Crown's stockholders.  In addition, this summary applies only to shares that are held as capital assets.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The following discussion is based on currently existing provisions of the Internal Revenue Code, or the Code, existing, proposed and temporary treasury regulations promulgated under the Code and current administrative rulings and court decisions.  All of the foregoing are subject to change, which may or may not be retroactive, and any of these changes could affect the validity of the following discussion.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">You are urged to consult your own tax advisor as to the particular tax consequences to you of the spin-off described in this document, including the applicability and effect of any state, local or foreign tax laws, and the possible effects of changes in applicable tax laws.</P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">Consequences of Spin-off to Crown''s Shareholders&#9;</I>&#9;&#9;&#9;</P>
<P ALIGN="JUSTIFY">&#9;&#9;&#9;&#9;&#9;&#9;&#9;&#9;</P>
<P ALIGN="JUSTIFY">Crown does not expect the spin-off to qualify as a tax-free distribution under Section 355 of the Code.  Accordingly, the receipt by Crown''s shareholders of our shares in connection with the spin-off will be treated as a taxable distribution in an amount equal to the fair market value of the shares.  The character of the taxable distribution to Crown's shareholders will be determined in accordance with the following progression:</P>
<P ALIGN="JUSTIFY"></P><DIR>

<P ALIGN="JUSTIFY">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a dividend to the extent paid out of Crown''s current or accumulated earnings and profits, if any, at the end of the year in which the spin-off occurs; then</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a reduction in each shareholder''s tax basis in their Crown common stock; and then</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;gain from the sale or exchange of each shareholder''s Crown common stock to the extent the amount received exceeds the sum of the amounts in (a) and (b).</P>
<P ALIGN="JUSTIFY"></P></DIR>

<P ALIGN="JUSTIFY">Each Crown shareholder will have tax basis in our stock equal to the fair market value of such stock at the time of the spin-off, and their holding period in our shares for capital gains purposes will begin on the date of the spin-off. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We are a shareholder of Crown and, as such, will be a recipient of our own shares in connection with the spin-off.  We will be treated as having received a taxable distribution whose character will be determined under the rules described above.  In the event a portion of the distribution is characterized as a dividend, we will be entitled to a dividends received deduction equal to 70% of the dividend amount, leaving 30% of the dividend to be taxable as ordinary income.  The remainder of the taxable distribution will first reduce our tax basis, expected to be $1,400,000, (which is the purchase price for our investment in the Crown Senior Notes and the Crown Subordinated B Notes) in the Crown shares, with capital gain recognized for any portion exceeding our tax basis.</P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">Consequences of Spin-off to Crown</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Crown expects the spin-off will fail to qualify as a tax-free distribution under Section 355 of the Code.  Accordingly, Crown will be treated as having sold our shares at the fair market value of such shares on the date of the spin-off and will have capital gain measured by the excess of the fair market value of our shares over Crown''s adjusted tax basis of such stock.  Crown is expected to have current operating losses and net operating loss carryovers in amounts sufficient to offset the capital gain resulting from the spin-off.</P>
<P ALIGN="JUSTIFY"></P>
<I><P ALIGN="JUSTIFY">Back-up Withholdings Requirements</P>
</I><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">United States information reporting requirements and backup withholding may apply with respect to dividends, if any, resulting from the spin-off unless you (a) are a corporation or fall into another exempt category, or (b) provide a correct identification number and certify that you have not been notified by the Internal Revenue Service that you are subject to backup withholding.  We urge you to consult your tax advisor regarding the Form W-9 filing procedures.  Failure to provide Crown with a properly prepared Form W-9 may result in penalties assessed by the Internal Revenue Service.</P>
<B><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">CAPITALIZATION</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The following table sets forth our cash, cash equivalents and capitalization as of September 30, 2003.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">You should read the capitalization data set forth in the table below in conjunction with the "Selected Historical Consolidated Financial and Other Data", "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our historical financial statements and the notes thereto appearing elsewhere in this information statement.  There are no anticipated adjustments to our historical capitalization as a result of the spin-off (other than a reduction in the number of our issued and outstanding shares due to retirement of the shares received by us as a result of the spin-off) as we are not issuing any new shares in connection therewith.</P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=480>
<TR><TD WIDTH="75%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">In thousands</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="MIDDLE">
<FONT SIZE=2><P ALIGN="CENTER">As of September 30, 2003</P>
<P ALIGN="CENTER"></FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Cash and cash equivalents</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;342&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Stockholders' equity</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Preferred stock, $0.01 par value, authorized 10,000,000 (none issued and outstanding at September 30, 2003</DIR>
</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">- &nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Common stock, $0.01 par value, authorized, 50,000,000 (23,407,134 issued and outstanding at September 30, 2003)</DIR>
</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">234</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Additional paid-in capital</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">21,189</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Accumulated deficit</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(15,306)</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Accumulated other comprehensive income</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">2,717</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">    Total capitalization</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,834</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<B><P ALIGN="CENTER">MARKET FOR OUR COMMON STOCK </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Our common stock has been traded on the Toronto Stock Exchange under the symbol SLR since July 1994.  There currently is no established public trading market for our common shares in the United States.  After the spin-off, we anticipate that our shares will also be traded on the OTC Bulletin Board in the United States.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The following table sets forth the high and low sales prices on the Toronto Stock Exchange for our common stock for the quarterly periods from January 1, 2001 to September 30, 2003.</P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=575>
<TR><TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="76%" VALIGN="TOP" COLSPAN=8>
<FONT SIZE=2><P ALIGN="CENTER">All prices are in CDN$</FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">2001</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">2002</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Period</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">High</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Low</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">High</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Low</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">High</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Low</FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">First quarter</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.46</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.85</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.90</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.41</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.80</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.45</FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Second quarter</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1.37</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.68</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.87</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.68</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.69</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.61</FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Third quarter</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.74</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.45</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.70</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.42</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1.14</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.60</FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Fourth quarter</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.53</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.41</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.65</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">.33</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">*1.76</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">*1.00</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* </B>through December 9, 2003</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Shares subject to options</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">On March 4, 1994, our Board of Directors adopted the 1994 Stock Option Plan (the "Plan") that authorized the issuance of up to 1,100,000 of our shares under the Plan.  The shareholders approved subsequent amendments to the Plan to increase the authorized shares under the Plan to 3,736,000 as of December 9, 2003.  As of December 9, 2003, we have granted options for 3,457,000 shares that remain unexercised at prices from Cdn$0.73 to Cdn$1.30 and there are options for 47,750 shares available for grant under the Plan.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Shares that could be sold pursuant to Rule 144 under the Securities Act</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">A total of 1,562,487 shares of our common stock could be sold pursuant to Rule 144.  These shares were issued in transactions occurring in 2001 and 2003 outside the United States pursuant to Regulation S.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Holders of our common shares</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">As of December 9, 2003 we have approximately 1,250 holders of our common shares.</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="CENTER">DIVIDEND POLICY </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We do not anticipate declaring or paying any cash dividends in the future.  We intend to retain our earnings to finance the expansion of our business and for general corporate purposes.  Our Board of Directors will have the authority to declare and pay dividends on our common stock in its discretion, as long as funds are legally available to do so.</P>
<B><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SELECTED HISTORICAL CONSOLIDATED FINANCIAL AND OTHER DATA </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The following table summarizes the consolidated statements of income and balance sheets data for our business since January 1, 1998.  These data have been derived from (i) the audited consolidated statements of operations for our business for each of the five years ended December 31, 2002 and the audited consolidated balance sheets of our business as of December 31, 2002, 2001, 2000, 1999 and 1998 and (ii) the unaudited consolidated statements of operations and balance sheets of our business as of and for each of the nine months ended September 30, 2003 and 2002.  The financial statements as of and for the nine months ended September 30, 2003 and 2002, in the opinion of management, reflect all adjustments, consisting of only normal recurring items, necessary to present fairly, in accordance with accounting principles generally accepted in the United States, the information for the periods.  You should read this information in conjunction with "Management's Discussion and Analysis of Financ
ial Condition and Results of Operations" and Solitario's historical consolidated financial statements and notes included elsewhere in this information statement.  The information set forth below is not necessarily indicative of future results.</P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=0 CELLPADDING=5 WIDTH=605>
<TR><TD WIDTH="31%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Statement of income data:</P>
<P ALIGN="LEFT">(in thousands, except </FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended September 30,</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="BOTTOM" COLSPAN=5>
<FONT SIZE=2><P ALIGN="CENTER">Year Ended December 31,</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;per share amounts)</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2002</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2002</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2001</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2000</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">1999</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">1998</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="BOTTOM" HEIGHT=23>
<B><FONT SIZE=2><P ALIGN="LEFT">Revenues:</B></FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Mineral property option proceeds</DIR>
</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Gain on sale of assets</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">5,811</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">19</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Interest income</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">238</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">100</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">137</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">236</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">360</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">144</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">200</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">238</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">100</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">137</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">236</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">6,271</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">263</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">200</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Costs and expenses:</B></FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Exploration expense</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">170</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">711</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">907</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">1,464</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">1,182</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">666</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Depreciation, depletion and amortization</DIR>
</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">18</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">34</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">40</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">49</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">18</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">35</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">10</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;General and administrative</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">218</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">300</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">372</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">511</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">372</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">75</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">112</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Management fees</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">275</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">365</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">449</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">590</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">414</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">333</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">89</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Asset write-downs</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">1,274</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">63</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">403 </FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">  Loss on sale of assets</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">26</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">45</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">39</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Other (net)</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">5</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">(9)</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">707</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">1,455</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">1,807</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">3,893</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">1,986</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">1,172</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">605</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">    Net income (loss) before cumulative effect of change in accounting principle</DIR>
</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">(469)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">(1,355)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">(1,670)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">(3,657)</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">4,285</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">(909)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">(405)</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Cumulative effect of change in accounting principle</DIR>
</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">(5,094)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">    Net income (loss)</B></FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(469)    </FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$(1,355)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(1,670)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$(3,657)</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;4,285</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ (6,003)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$(405)</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19>
<B><FONT SIZE=2><P ALIGN="LEFT">Earnings (loss) per common share:</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT"> Basic before cumulative effect of change in accounting principle</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ (0.02)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ (0.06)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;(0.07)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ (0.16)</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;0.24</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(0.05)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ (0.02)</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT"> Change in accounting principle</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.31)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT"> Basic earnings (loss) per share</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ (0.02)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ (0.06)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(0.07)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$(0.16)</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;0.24</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(0.36)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(0.02)</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Diluted before cumulative effect of change in accounting principle</DIR>
</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">$ (0.02)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;(0.06)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;(0.07)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;(0.16)</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.23</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;(0.05)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">$&nbsp;&nbsp;(0.02)</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT"> Change in accounting principle</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-  </FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-  </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">           -  </FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">           -  </FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">           -  </FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">  (0.31)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">           -  </FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Diluted earnings (loss) per share</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ (0.02)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;(0.06)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;(0.07)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(0.16)</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;0.23</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;(0.36)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(0.02)</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="LEFT">Weighted average shares outstanding:</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT"> &nbsp;Basic </FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,407</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,407</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,407</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,387</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">18,163</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">16,855</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">16,855</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">  Diluted</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,407</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,407</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,407</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,387</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">18,350</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">16,855</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">16,855</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=0 CELLPADDING=2 WIDTH=610>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Balance sheet data:</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">September 30,</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="50%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="CENTER">December 31,</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">(in thousands, except</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2002</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2002</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2001</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2000</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">1999</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;1998&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;per share amounts)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Assets</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="JUSTIFY">Current assets:</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;&nbsp;Cash and cash equivalents</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$342&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$1,681&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;1,405&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;2,723&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;6,334&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ 2,386&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$3,245&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">  Restricted cash</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">116&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;&nbsp;Note receivable</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">112&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">116&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">111&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">108&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT"> - &nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-  &nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-  &nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Investments in marketable equity securities, at fair value</DIR>
</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">769&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">331&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">409&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">268&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">220&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">103&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">229&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;&nbsp;Prepaid expenses and other</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;50&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;45&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;27&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">1,273&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">2,173&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">1,952&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">3,168&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">6,710&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">2,532&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">3,528&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Mineral properties, net</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">3,794&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">3,743&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">3,743&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">3,693&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">4,873&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">53&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">5,388&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="JUSTIFY">Assets held for sale</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-  &nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">178&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP"><DIR>

<B><FONT SIZE=2><P ALIGN="LEFT">Note receivable from Crown, net of discount</DIR>
</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">1,332&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">910&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">915&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">893&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-  &nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-  &nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-  &nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP"><DIR>

<B><FONT SIZE=2><P ALIGN="LEFT">Crown warrants, at fair value</DIR>
</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">2,473&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">153&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">153&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">47&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="JUSTIFY">Other assets</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;11&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;155&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;140&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;302&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;377&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;33&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;9&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ 8,883&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$  7,134&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ 6,903&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ 8,103&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$11,960</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ 2,796&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ 8,925&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP" HEIGHT=2><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19>
<B><FONT SIZE=2><P ALIGN="LEFT">Liabilities and Stockholders' Equity</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="JUSTIFY">Current liabilities:</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;&nbsp;Accounts payable</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;&nbsp;Due to Crown</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">27&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">43&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">73&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;62&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">81&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">39&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;5&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">49&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">60&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">99&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">106&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">151&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">46&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">24&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="JUSTIFY">Stockholders' equity:</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Preferred stock, $0.01 par value, authorized 10,000,000 (none issued and outstanding at September 30, 2003)</DIR>
</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Common stock, $0.01 par value, authorized, 50,000,000 (23,407,134 issued and outstanding at September 30, 2003)</DIR>
</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">234&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">234&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">234&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">234&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">234&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">169&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">169&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Additional paid-in capital</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">21,189&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">21,189&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">21,189&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">21,189&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">21,147&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">16,507&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">16,507&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Accumulated deficit</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">(15,306)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">(14,522)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">(14,837)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">(13,167)</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">(9,510)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">(13,795)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">(7,792)</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Accumulated other comprehensive income (loss)</DIR>
</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;2,717</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;173&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;218&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(259)   </FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(62)&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(131)&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">             17</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;8,834&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;7,074&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;6,804&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;7,997&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;11,809&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;2,750&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;8,901&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP"><DIR>

<B><FONT SIZE=2><P ALIGN="LEFT">Total liabilities and stockholders' equity</DIR>
</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;8,883&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ &nbsp;7,134&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ &nbsp;6,903&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp; &nbsp;8,103&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$11,960</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;2,796&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$ &nbsp;8,925&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Selected Quarterly Financial Information :</P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=0 CELLPADDING=1 WIDTH=423>
<TR><TD WIDTH="45%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">(in thousands)</FONT></TD>
<TD WIDTH="52%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="JUSTIFY">Statement of operations:</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">March 31,</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Sept. 30,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">  Revenues</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59 </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;91</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">  Net loss</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(126)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(121)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(222)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">  Basic and fully diluted loss per common and common equivalent share:</DIR>
</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.01)</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.00)</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.01)</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Balance sheet</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">  Total assets</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,370 </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,988</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,883</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">  Working capital</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,295</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,228</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,224</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">  Long-term liabilities</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">  Stockholders' equity</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,259</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,881</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,834</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<B><P ALIGN="CENTER">MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The following discussion should be read in conjunction with the information contained in the consolidated financial statements and notes thereto included elsewhere in this information statement.  Our financial condition and results of operations are not necessarily indicative of what may be expected in future years.  </P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Recent Developments</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">On November 20, 2003, Crown and Kinross announced that the two companies have executed an Acquisition Agreement and Agreement and Plan of Merger (the "Merger Agreement") whereby Kinross will acquire Crown and its 100%-owned Buckhorn Mountain gold deposit located in north central Washington State, USA, approximately 67 kilometers (42 miles) by road from Kinross' Kettle River gold milling facility.  Under the terms of the Merger Agreement, shareholders of Crown will receive 0.2911 shares of Kinross for each share of Crown.  The transaction contemplated by the Merger Agreement is subject to regulatory approvals, a minimum two-thirds approval at a special meeting of Crown shareholders and customary closing conditions.  It is the intent of Crown that the spin-off of the Solitario shares will take place prior to the completion of the acquisition by Kinross. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">As of December 9, 2003, we own 965,491 shares of Crown common stock and have warrants to acquire up to 3,057,143 additional shares of Crown common stock at prices between $0.60 and $0.75 per share.  In addition, we could acquire an additional 3,057,143 shares of Crown common stock through the conversion of the Crown Senior Notes.  Assuming the completion of the exchange of shares as contemplated by the Merger Agreement, the Release, all of Crown's convertible debentures are converted, all of Crown's options are exercised and all of Crown's warrants are exercised on a cashless basis at the market price of Crown common stock on December 9, 2003, of $2.55 per share, we estimate we would own approximately 6,251,206 shares of Crown, which would convert into approximately 1,819,726 shares of Kinross.  The Kinross shares would be valued at approximately $15.6 million, assuming the December 9, 2003 market price of $8.60 per share for each Kinross share.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">On November 8, 2003 Crown announced that it would be distributing its (through CRCC) entire holdings of 9,633,585 shares of our common stock.  Of these shares, a total of 3,140,162 shares owned by CRCC are held with an escrow agent pursuant to the Escrow Agreement.  We have provided notice of and will hold a special meeting of our shareholders on December 29, 2003 where they will vote on approval of the release of the Escrowed Shares.  Approval of the Release by our shareholders other than CRCC and its associates and affiliates will allow for CRCC to dividend our shares to Crown to enable Crown to dividend up to its entire holdings of 9,633,585 of our shares to Crown's shareholders.  If our Disinterested Shareholders do not approve the Release, the Escrowed Shares may not be available for dividend by Crown.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">On November 5, 2003 Solitario's Subordinated B Note was automatically converted into 533,333 shares of Crown.  The conversion was in accordance with the terms of the Subordinated B note, which allowed for an automatic conversion if Crown's common stock traded above $1.75 per share for twenty consecutive trading days. </P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Results of Operations</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Comparison of Nine Months Ended September 30, 2003 to Nine Months Ended September 30, 2002</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Solitario recorded a net loss of $469,000 or $0.02 per share for the first nine months of 2003, compared to a net loss of $1,355,000 or $0.06 per share for the same period in 2002.  The improvement is primarily a result of reductions in net exploration expense to $170,000 in 2003 compared to $711,000 in 2002, along with reductions in general and administrative costs, to $218,000 in the first nine months of 2003 from $300,000 in the first nine months of 2002, and management fees to $275,000 in the first nine months of 2003 from $365,000 in the first nine months of 2002.  In addition, interest income increased during the first nine months of 2003 to $238,000 compared to $100,000 in the first nine months of 2002.  Solitario also recorded a smaller loss related to a permanent reduction in value on marketable equity securities of $26,000 in the first nine months of 2003 compared to net losses from the sale of assets and marketable equity securities of $45,000 during the first nine months of 200
2. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Exploration expense was reduced to $170,000 during the first nine months of 2003 compared to $711,000 in the prior year primarily as a result of the Anglo joint venture reimbursement of costs on the Pedra Branca project, located in Brazil.  As discussed above, Anglo reimbursed exploration costs on Pedra Branca up to $500,000 through July 28, 2003, for the first six months of the joint venture agreement, which covered the majority of Solitario's exploration costs during the first nine months of 2003.  As discussed above, this reduction in net exploration costs has been mitigated by Solitario's expansion of its exploration efforts to include Peru, Bolivia and other areas of Brazil during the third quarter of 2003.   </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Solitario reduced general and administrative expenses to $218,000 during the first nine months of 2003, compared to $300,000 during the first nine months of 2002.  The general and administrative cost reductions were primarily the result of reduced staff levels in Peru, which resulted in lower salary and office rental costs and general and administrative savings in Bolivia where Solitario closed its exploration office during 2002.<B> </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Interest income increased in the first nine months of 2003 to $238,000, from $100,000 during the same period of 2002.  The increase is due to the increased value of the shares received by Solitario ($207,000 in 2003 compared to $41,000 in 2002) as interest on the Senior and Subordinated B Notes discussed in note 4 to the consolidated financial statements.  This increase was reduced by decreased interest income from cash and cash equivalents during the first nine months of 2003 compared to 2002.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Management fees paid to Crown were reduced during the first nine months of 2003 to $275,000 from $365,000 for the same period of 2002 as a result of an amendment to the Management Services contract entered into in July 2002 which modified the cost allocation for personnel who began to spend more of their time on Crown related activities.  Additionally there were reduced needs for general and administrative support and expenses, including travel, accounting and investor services related to the reduced exploration activities during most of 2003 compared to 2002.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Comparison of Year Ended December 31, 2002 to Year Ended December 31, 2001</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We had a loss of $1,670,000 or $0.07 per share in 2002 compared with a loss of $3,657,000 or $0.16 per share in 2001.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">During 2002 we continued our exploration program in Brazil on our Pedra Branca platinum group metals project.  In 2001, we conducted exploration activities on Pedra Branca as well as Tocantinzinho in Brazil and Rincon del Tigre in Bolivia.  This resulted in a decrease in exploration expense and general and administrative expenses for travel, legal, and exploration support during 2002 compared to 2001. During 2002, we recorded $30,000 in exploration consulting fees paid to the former president of Altoro for assistance with Brazilian and Bolivian activities compared to $120,000 in consulting fees in 2001.  During 2001, we wrote down our Tocantinzinho and Rincon del Tigre properties with a charge of $1,274,000 to property abandonment compared to no write-downs in 2002.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In April 2000 we completed a transaction with an affiliate of Newmont Mining Corporation ("Newmont") and sold our interest in the Yanacocha property for proceeds of $6,000,000 and a sliding scale net smelter return royalty ("NSR") that varies with the price of gold.  The cash consideration was $5,600,000 with $400,000 deferred and recorded as a long-term note receivable due over a four-year period, pending release of certain contingent liabilities.  We received payments of $109,000 and $106,000 of the deferred proceeds, including interest in April 2002 and 2001, respectively.</P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">Interest income was $137,000 and $236,000 in 2002 and 2001, respectively.  The change in interest income was primarily the result of larger cash balances related to the Yanacocha sale during 2000, compared to 2002 and 2001.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Exploration expense was $907,000 in 2002 compared to $1,464,000 in 2001.  Exploration during 2001 included two separate drilling programs at Pedra Branca in Brazil as well as a drilling program at Rincon del Tigre in Bolivia.  Additionally, field geology, including sampling, was conducted at Tocantinzinho during 2001.  During 2002 we limited our exploration activities to Pedra Branca, which resulted in the lower costs.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">During the year ended December 31, 2002, we incurred $372,000 of general and administrative expenses compared with $511,000 in 2001.  General and administrative expenses consist of administrative (office rent, payroll, insurance, banking and automobile) legal, accounting and auditing, travel and shareholder-related costs.  The increased activities in Brazil and Bolivia and increases in accounting and shareholder costs accounted for the higher general and administrative expenses during 2001 compared 2002.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Crown provides management and technical services to us under the Management Agreement originally signed in 1994 and modified in April 1999, in December 2000 and July 2002.  The modified agreement, which has a three year term, provides for reimbursement to Crown of direct out-of-pocket costs; payment of between twenty-five percent and seventy-five percent of executive and administrative salaries and benefits, rent, insurance and investor relations costs ("Administrative Costs") and payment of certain allocated indirect costs and expenses paid by Crown on our behalf.  Management service fees paid to Crown by us in 2002 and 2001 were $449,000 and $590,000, respectively.  Net amounts due to Crown as of December 31, 2002 and 2001 were $73,000 and $62,000, respectively, related to the Management Agreement.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Depreciation, depletion, and amortization expense was $40,000 in 2002 compared to $49,000 in 2001.  Certain equipment was retired and sold during 2002 as we narrowed our focus of exploration to the Pedra Branca project, resulting in the lower depreciation amount in that year.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We regularly perform evaluations of our assets to assess the recoverability of our investments in these assets.  All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable utilizing established guidelines based upon future net cash flows from the asset.  Write-downs relating to exploration properties amounted to $1,274,000 in 2001.  There were no property write-downs in 2002.  We wrote-down $636,000, representing the investment in the Rincon del Tigre property in Bolivia and $638,000, representing the investment in the Tocantinzinho property in Brazil, after exploration programs performed during 2000 and 2001 failed to identify economic deposits on those properties.  Both of these properties were acquired from Altoro during 2000.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Comparison of Year Ended December 31, 2001 to Year Ended December 31, 2000</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We had a loss of $3,657,000 or $0.16 per share in 2001 compared with net income of $4,285,000 or $0.24 per share in 2000.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">During 2001 we continued an exploration program in Brazil and Bolivia on our platinum group metals deposits, which included the Pedra Branca property in Brazil and the Rincon del Tigre property in Bolivia and the Tocantinzinho gold property in Brazil.  This resulted in an increase in exploration expense and additional general and administrative expenses for travel, legal, and exploration support.  During 2001, we recorded $120,000 in exploration consulting fees paid to the former president of Altoro for assistance with Brazilian and Bolivian activities compared to $30,000 in consulting fees in 2000.  During 2001, we wrote down our Tocantinzinho and Rincon del Tigre properties with a charge of $1,274,000 to property abandonment compared to no write-downs in 2000.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In April 2000 we completed a transaction with an affiliate of Newmont Mining Corporation ("Newmont") and sold our interest in the Yanacocha property for proceeds of $6,000,000 million and a sliding scale net smelter return royalty ("NSR") that varies with the price of gold.  The cash consideration was $5,600,000 with $400,000 deferred over a four-year period, pending release of certain contingent liabilities.  We received $100,000 of the deferred proceeds, plus interest in April 2001.  We recorded a gain on the sale of the Yanacocha property of $5,809,000 during the second quarter of 2000.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Interest income was $236,000 and $360,000 in 2001 and 2000, respectively.  The change in interest income was primarily the result of larger cash balances related to the Yanacocha sale during 2000, compared to 2001.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Exploration expense was $1,464,000 in 2001 compared to $1,182,000 in 2000.  The increase from 1999 was primarily as a result of the expansion of our exploration program to include Brazil and Bolivia as well as an expansion of the focus of exploration to include platinum group metals during 2000 after the Altoro acquisition.  The increased exploration during 2001 included two separate drilling programs at Pedra Branca in Brazil as well as a drilling program at Rincon del Tigre in Bolivia.  Additionally, field geology including trenching and sampling was conducted at Tocantinzinho during 2001.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">During the year ended December 31, 2001, we incurred $511,000 of general and administrative expenses compared with $372,000 in 2000.  General and administrative expenses consist of administrative (office rent, payroll, insurance, banking and automobile) legal, accounting and auditing, travel and shareholder-related costs.  The increased activities in Brazil and Bolivia and increases in accounting and shareholder costs accounted for the increase in general and administrative expenses during 2001 compared to 2000.</P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">Management service fees paid to CRCC by us in 2001 and 2000 were $590,000 and $414,000, respectively.  The fees will generally fluctuate period-to-period based on the overall level of administrative and exploration activities during the period.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Depreciation, depletion, and amortization expense was $49,000 in 2001 compared with $18,000 in 2000.  The increase in depreciation expenses during 2001 related to additions to property, plant and equipment related to the Altoro transaction being depreciated for the entire year as well as certain additional equipment purchased during 2001.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We regularly perform evaluations of our assets to assess the recoverability of our investments in these assets.  All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable utilizing established guidelines based upon future net cash flows from the asset.  Write-downs relating to exploration properties amounted to $1,274,000 in 2001 compared to no property write-downs in 2000.  We wrote-down $636,000, representing the investment in the Rincon del Tigre property in Bolivia and $639,000, representing the investment in the Tocantinzinho property in Brazil, after exploration programs performed during 2000 and 2001 failed to identify economic deposits on those properties.  Both of these properties were acquired from Altoro during 2000. </P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Liquidity and Capital Resources </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Due to the nature of the mining business, the acquisition, exploration, and development of mineral properties requires significant expenditures prior to the commencement of production.  In the past, we have financed our activities through the sale of securities, joint venture arrangements, and the sale of interests in our properties.  To the extent necessary, we expect to continue to use similar financing techniques; however there is no assurance that such financing will be available to us on acceptable terms, if at all.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We had working capital of $1,224,000 at September 30, 2003 compared to working capital of $1,853,000 as of December 31, 2002.  The decrease is due primarily to our purchase of $400,000 of the Subordinated B Notes from Crown, as discussed below, and also due to the use of working capital to pay general and administrative expenses and management fees. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">As of December 9, 2003, we own 965,491 shares of Crown common stock and have warrants to acquire up to 3,057,143 additional shares of Crown common stock at prices between $0.60 and $0.75 per share.  In addition, we could acquire an additional 3,057,143 shares of Crown common stock through the conversion of the Crown Senior Notes.  Assuming the completion of the exchange of shares as contemplated by the Merger Agreement, the Release, all of Crown's convertible debentures are converted, all of Crown's options are exercised and all of Crown's warrants are exercised on a cashless basis at the market price of Crown common stock on December 9, 2003, of $2.55 per share, we estimate we would own approximately 6,251,206 shares of Crown.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We will receive shares of our own common stock as a result of the spin-off.  We have estimated we will receive approximately 1,234,518 shares of our own common stock as a result of the spin-off.  These shares will be retired and have the status of authorized but unissued shares of our common stock.  This would have the result of reducing the amount of issued and outstanding shares of common stock by the amount of common stock we receive as a result of the spin-off and increasing the percentage ownership interest in us for each of our shareholders.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Assuming the completion of the merger with Kinross as contemplated in the Merger Agreement we have estimated our Crown common stock would convert into approximately 1,819,726 shares of Kinross.  These Kinross shares would be valued at approximately $15.6 million, assuming the December 9, 2003 market price of $8.60 per share for each Kinross share.  Although no specific plans have been formulated by our Board, we intend to liquidate a portion of our Kinross shares over time to reduce our exposure to a single asset, taking into consideration our cash and liquidity requirements, tax implications, the market price of gold and the market price of Kinross stock.  Any funds received from the sale of Kinross shares would be used to fund exploration on our existing properties, for the acquisition and exploration of new properties and general working capital.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">On November 4, 2003, we completed a private placement to certain Canadian based funds managed by Sprott Asset Management of Toronto, Ontario of 1,500,000 common shares at a price of Cdn$1.20 per share for total proceeds of Cdn$1,800,000, or approximately $1,349,000. The additional shares reduced Crown's interest in us from 41.2% at September 30, 2003 to 38.7%.  The funds will be used to fund current exploration programs in Peru, Bolivia and Brazil, for the costs of this registration, and for general corporate purposes. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In August 2003, we signed the Option Agreement to acquire a 100% interest in the Triunfo gold-silver-lead-zinc property in west-central Bolivia.  Terms of the Option Agreement call for escalating payments totaling $185,000 over a four-year period to the underlying owners.  The first payment of $10,000 has been made.  A 100% interest in the property can be acquired at anytime within a five-year timeframe for a one-time payment of $1.0 million.  Solitario plans to spend a minimum of $100,000 during the first year as part of its five-year $2.3 million work commitment.</P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">On February 21, 2003, we invested $400,000 in Crown's 10% convertible subordinated promissory notes due 2006 Series B (The "Subordinated B Notes").  The issuance of up to $3 million of the Subordinated B Notes was authorized by Crown on February 7, 2003 by Crown's Board of Directors.  On February 21, 2003, Crown closed the financing by issuing $2.7 million of the Subordinated B Notes.  The Subordinated B Notes are convertible into common stock of Crown at $0.75 per share.  The Subordinated B Notes pay interest at 10% in stock or cash at Crown's option, and mature on October 19, 2006, the same date as Crown's Senior Notes.  Our investment was on the same terms as all other investors.  On November 5, 2003, the Subordinated B Notes were automatically converted into 533,333 shares of Crown common stock.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">On January 28, 2003 we entered into an agreement with Anglo American Platinum Corporation, Ltd. ("Anglo Platinum") whereby Anglo Platinum may earn a 51% interest in the Pedra Branca Project, by spending $7 million on exploration at Pedra Branca over a four-year period.  Anglo Platinum agreed to a minimum expenditure of $500,000 during the first six months of the agreement.  Anglo Platinum can earn an additional 9% interest in Pedra Branca (for a total of 60%) by completing a bankable feasibility study.  Anglo Platinum can also earn an additional 5% interest in Pedra Branca (for a total of 65%) by arranging for financing to put the project into commercial production.  Anglo Platinum has met its minimum required expenditure for the first six months and is currently reviewing the results of the first six months (Phase one) exploration program, before making a decision to fund the second phase of the Pedra Branca Project exploration program.  If Anglo Platinum declines to continue, we will ret
ain 100% of the Pedra Branca Project.  </P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">In October 2001, we invested $1,000,000 in two Senior Notes issued by Crown; see related party transactions, below.  The Solitario Note for $350,000 is convertible into Crown common shares at a conversion price of $0.2916 per share, subject to adjustment.  The remaining Senior Note for $650,000 is convertible into Crown common shares at a conversion price of $0.35 per share, subject to adjustment. As part of that investment, Crown issued us warrants exercisable into Crown shares at any time prior to October 2006 at exercise prices between $0.60 and  $0.75 per share.  We recorded the warrants at their fair value of $110,000 on the date of the transaction, and this fair value was recorded as a discount to the Senior Notes receivable from Crown.   The discount is being amortized over the life of the Senior Notes as additional interest income.  As a result, we recorded $18,000 of additional interest income for the both of the nine-month periods ended September 30, 2003 and 2002.  The fair valu
e of the warrants was $2,293,000, based upon quoted prices at September 30, 2003 compared to $153,000 at December 31, 2002.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">As of September 30, 2003, we currently have no outstanding long-term debt, capital or operating leases or other purchase obligations.  </P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">Cash and cash equivalents were $342,000 as of September 30, 2003 compared to $1,405,000 at December 31, 2002.  We believe we will require additional cash resources to continue to explore our properties over the next year.  The nature of the mining business requires significant sources of capital to fund development and operations or mining projects.  We will need additional resources in order to develop and mine any mineral deposits we have.  We anticipate that we would finance these activities through the use of joint venture arrangements, the issuance of debt or equity, the sale of interests in our properties or the sale of our shares of Kinross common stock.  There can be no assurance that such sources of funds will be available on terms acceptable to us, if at all.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">As previously noted, under the Management Agreement we currently reimburse Crown for certain expenses, including management salaries and benefits, rent, insurance and investor relations costs and certain other expenses paid by Crown on our behalf.  Upon completion of the spin-off and assuming the completion of the Kinross merger, we will no longer operate under the Management Agreement.  This change will result in an increase in general and administrative costs related to salaries and benefits for employees, rent, audit and legal fees, shareholder relations costs, travel and office expenses.  In the event that the Kinross transaction is not completed, we anticipate that we would continue to operate under the Management Agreement with Crown.  See "Management of Solitario Resources Corporation" for further discussion.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Upon completion of the spin-off, we will be a reporting issuer under both the Canadian and U.S. jurisdictions.  As a reporting issuer in the U.S., we will be required to comply with a variety of new rules and regulations specific to the U.S.  We expect these new rules and regulations to increase our legal and financial compliance costs, and to make some activities more difficult, time consuming and/or costly. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Cash Flows </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">For the nine months ended September 30, 2003</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Net cash used in operations during the first nine months of 2003 decreased to $723,000 compared to $1,369,000 for the same period of 2002 primarily as a result of reductions in net exploration expenses, general and administrative expenses and management fees as discussed above.  Investing activities used $340,000 of cash during the first nine months of 2003 compared to $327,000 of cash provided in the same period of 2002.  The use of cash during 2003 was primarily the result of the purchase of $400,000 of the Subordinated B Notes discussed above, compared to the sale of Canyon Resources Corporation common stock for proceeds of $245,000 during the first nine months of 2002.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">For the year ended December 31, 2002</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Additions to mineral properties for land and leasehold costs during 2002 were $50,000, primarily for property and lease payments on Pedra Branca and Bongara, compared to $52,000 during 2001 and $4,820,000 during 2000.  The additions during 2000 related primarily to the acquisition of Altoro properties as follows: The Pedra Branca property in Brazil of $3,627,000; the Tocantinzinho property in Brazil of $621,000; and the Rincon del Tigre property in Bolivia of $558,000. Solitario expenses all exploration costs on properties without proven and probable reserves.  There were no capitalized exploration costs during 2002, 2001 and 2000.</P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">During 2000, Solitario received $6,000,000 from the sale of its Yanacocha property to Newmont.  The cash consideration was $5,600,000 with $400,000 deferred and recorded as a long-term note receivable due over a four-year period, pending release of certain contingent liabilities.  Solitario received payments of $109,000 and $106,000 of the deferred proceeds, including interest in April 2002 and 2001, respectively.  Solitario recorded a gain on the sale of the Yanacocha property of $5,809,000 during the second quarter of 2000.  Solitario recorded property acquisition costs of $42,000 and $4,705,000 from the issuance of its shares during 2001 and 2000 respectively.  The additions recorded during 2000 were in connection with the acquisition of Altoro.  No other shares were issued in 2002, 2001 or 2000. Primarily as a result of the issuance of shares in connection with the acquisition of Altoro, Crown's indirect ownership percentage was reduced from 57.2% (prior to the Altoro transaction) to 4
1.2% as of December 31, 2002.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Cash and cash equivalents amounted to $1,405,000 at December 31, 2002.  These funds are generally invested in short-term interest-bearing deposits and securities, pending investment in current and future projects.  The note receivable from Newmont amounted to $222,000 at December 31, 2002, including $111,000 in other (long-term) assets.  Working capital at December 31, 2002 was $1,853,000.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">For the year ended December 31, 2001</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Additions to mineral properties for land and leasehold costs during 2001 were $95,000, primarily for property and lease payments on Rincon del Tigre and Tocantinzinho, compared to $4,820,000 during 2000.  The additions during 2000 related primarily to the acquisition of Altoro properties as follows: The Pedra Branca property in Brazil of $3,627,000; the Tocantinzinho property in Brazil of $621,000; and the Rincon del Tigre property in Bolivia of $558,000. There were no capitalized exploration costs during 2001 and 2000 due to Solitario's decision to expense exploration costs on properties without proven and probable reserves, compared to additions of $991,000 for leasehold acquisition costs and exploration expenditures in 1999.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">During 2000, Solitario received $6,000,000 from the sale of its Yanacocha property to Newmont.  Newmont retained $400,000 to be paid out in four annual payments of $100,000 plus interest pending the release of certain contingent liabilities.  Solitario received the first payment of $100,000, plus interest of $6,000, in April 2001.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Solitario recorded property acquisition costs of $42,000 and $4,705,000 from the issuance of its shares during 2001 and 2000 respectively.  The additions recorded during 2000 were in connection with the acquisition of Altoro.  No other shares were issued in 2001, 2000, or 1999. Primarily as a result of the issuance of shares in connection with the acquisition of Altoro, Crown's indirect ownership percentage was reduced from 57.2% (prior to the Altoro transaction) to 41.2% as of December 31, 2001.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Cash and cash equivalents amounted to $2,723,000 at December 31, 2001.  These funds are generally invested in short-term interest-bearing deposits and securities, pending investment in current and future projects.  Restricted cash held by Newmont amounted to $325,000, including $217,000 in other (long-term) assets.  Working capital at December 31, 2001 was $2,794,000.  </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="LEFT">Seasonal Factors </P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">Our Pedra Branca project, located in Brazil, has a mild rainy season from January to May, however these rains do not significantly affect the project and they are not expected to affect results during any part of 2003.  The Bongara pproject, located in Peru, is affected by a rainy season from December to April, however we have not conducted, nor are we planning any significant exploration activities at Bongara during 2003.  The Triunfo Property in Bolivia experiences approximately 3 months of sub-freezing temperatures with the potential for snow, that hamper but not prevent exploration activities.  These seasonal factors similarly affected our exploration activities in 2000, 2001 and 2002.</P>
<B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Related Party Transactions</P>
</B><U><P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">Crown, through its wholly owned subsidiary, CRCC owns 38.7% of us.  Crown provides management and technical services to us under the Management Agreement originally signed in April 1994 and modified in April 1999, December 2000 and July 2002.  Under the modified agreement we reimburse Crown for direct out-of-pocket expenses; payment of between 25% and 75% of executive and administrative salaries and benefits, rent, insurance and investor relations costs and payment of certain indirect costs and expenses paid by Crown on our behalf. The independent members of both Crown and our Board have approved the agreement and all amendments thereto.  Management service fees paid by us to Crown were $275,000 for the nine months ended September 30, 2003 compared to $365,000 for the nine months ended September 30, 2002.  Management fees were $449,000 for 2002, $590,000 for 2001 and $414,000 for 2000.  Effective with the completion of the spin-off and assuming the successful acquisition of Crown by Ki
nross, the Management Agreement will be terminated and we will contract directly with our management and directly pay all administrative expenses.  In the event that the Kinross transaction is not completed, we anticipate that we would continue to operate under the Management Agreement with Crown.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Christopher E. Herald, and Mark E. Jones, III are directors of both Crown and us.  Christopher E. Herald, James R. Maronick and Walter H. Hunt are officers of both Crown and us.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">As part of the investment in the Senior Notes, Solitario also received two warrants.  The first warrant gives Solitario the right to purchase 1,857,143 shares of Crown for $0.75 through October 2006.  The second warrant gives Solitario the right to purchase 1,200,000 shares of Crown at $0.60 through October 2006.  The fair value of the warrants at the time of issuance, $110,000, was recorded as a discount to the Senior Notes.  This discount is being amortized over the life of the Senior Notes as additional interest income.  Solitario recorded $6,000 of additional interest from the amortization of the discount for both of the three-month periods ended September 30, 2003 and 2002.  The fair value of the warrants, based upon a quoted bid price, was $2,473,000 as of September 30, 2003 and $153,000 at December 31, 2002.<B> </B>Solitario records any increase or decrease in the fair value of the warrants as other comprehensive income or loss in stockholders' equity.  Solitario recorded an increas
e in the value of the warrants of $2,320,000 and $106,000 for the nine months ended September 30, 2003 and 2002 respectively.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In October 2001, we invested in two 10% convertible secured promissory notes, ("Senior Notes") totaling $1,000,000 of the $3,600,000 Secured Notes issued by Crown.  The proceeds from the first Senior Note, (the "Solitario Note"), of $350,000 were delivered to Crown.  The proceeds from the second Senior Note, of $650,000 were placed in escrow pending the outcome of Crown's voluntary petition for bankruptcy, filed in United States Bankruptcy Court, which was filed on March 8, 2002 (the "Bankruptcy").  In March 2002 an additional $200,000 was advanced to Crown out of escrow of which our share of the advance was $56,000.  Crown''s plan of reorganization was confirmed on May 30, 2002 and the remaining balance of the proceeds plus interest was released to Crown on the effective date of the plan of reorganization.  The independent Board members of Crown and of us approved the transaction.  The terms of the transaction on the Escrowed Notes were the same as given to other senior lenders of Crown (
the ""Senior Lenders"") and, with regard to the terms of the $350,000 Solitario Note, the terms were negotiated with and approved by the other Senior Lenders.  During 2003 and 2002, we were paid 89,522 and 182,440 Crown shares, respectively, as interest under the Senior Notes.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We entered into a Voting Agreement dated as of April 15, 2002 among Zoloto Investors, LP (""Zoloto"") and Crown.  Zoloto and we are both shareholders of Crown (the ""Signing Shareholders"").   Pursuant to the Voting Agreement, Zoloto and we agree that we will each vote our owned shares during the term of the Voting Agreement for the election of three designees of Zoloto and one designee of Solitario (the ""Designee Directors"") to the Board of Directors of Crown.  The Signing Shareholders agreed that any shares received by either Signing Shareholder would be subject to the Voting Agreement during its term and any successor, assignee or transferee of shares from either Signing Shareholder would be subject to the terms of the Voting Agreement during its term.  The Voting Agreement terminates on the third anniversary from the date of the first annual meeting of shareholders after the date of the Voting Agreement.  As of December 9, 2003, the Signing Shareholders collectively held 1,733,866 sh
ares or approximately 10.1% of the outstanding shares of Crown.  As of December 9, 2003, we owned 965,491 shares of Crown common stock, from automatic conversion of our Subordinated B Notes and received as interest on our Senior and Subordinated B Notes, we have warrants to acquire 3,057,143 shares of Crown common stock at between $0.60 and $0.75 per share and could also acquire up to 3,057,143 additional shares of Crown common stock through conversion of the Senior Notes.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">On June 26, 2001, we agreed to acquire 200,000 shares of Canyon Resources Corporation common stock from Crown at its fair market value of $200,000 at that date.  We sold the shares for $245,000 in February 2002, the fair market value at that date.  The transaction provided additional working capital to Crown, and was approved by independent Board members of both Crown and us.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">On February 21, 2003, we invested $400,000 in Crown's 10% convertible subordinated promissory notes due 2006 Series B (The "Subordinated B Notes").  The issuance of up to $3 million of the Subordinated B Notes was authorized by Crown on February 7, 2003 by Crown's Board of Directors.  On February 21, 2003, Crown closed the financing by issuing $2.7 million of the Subordinated B Notes.  The Subordinated B Notes are convertible into common stock of Crown at $0.75 per share.  The Subordinated B Notes pay interest at 10% in stock or cash at Crown's option, and mature on October 19, 2006, the same date as Crown's Senior Notes.  Our investment was on the same terms as all other investors.  On November 5, 2003, the Subordinated B Notes were automatically converted into 533,333 shares of Crown common stock.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Joint Ventures</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We acquired the Pedra Branca platinum-palladium ("PGM") Project located in Ceara State, Brazil, as part of the Altoro acquisition in October 2000.  We control 100% interest in 65 concessions totaling 69,244 hectares.  Altoro signed an agreement in 1999, which was modified in 2000 and 2003, with Eldorado Gold Corporation ("Eldorado") whereby we could have earned a 70% interest in concessions covering approximately 10,000 hectares, by spending $2,000,000 on exploration by August 2003.  However, we elected not to complete the earn-in requirement and the Eldorado lease expired without Solitario earning any interest in the leased concessions.  We reacquired concessions within the previously leased Eldorado area in October 2003.  Eldorado is entitled to a 2% NSR royalty on these reacquired concessions. In February 2000, Altoro signed a letter of intent, which was subsequently assigned to Rockwell Ventures, Inc., of Vancouver Canada ("Rockwell"), granting Rockwell an option to earn a 60% interest
 in Altoro's share of the Pedra Branca Project.  Under the terms of the agreement, Rockwell was required to spend $7,000,000 on exploration within four years from July 2000, with a minimum expenditure of $1,000,000 during the first year.  In addition, Rockwell issued to us a total of 125,433 shares and $50,000 in cash in May 2000 upon regulatory approval of the agreement.  In June of 2001, Rockwell terminated its option under the agreement. At September 30, 2003, we own 100% of the Pedra Branca project, subject to the Anglo Platinum agreement discussed below. </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">On January 28, 2003 we entered into an agreement with Anglo Platinum whereby Anglo Platinum may earn a 51% interest in the Pedra Branca Project by spending $7 million on exploration at Pedra Branca over a four-year period.  Anglo Platinum agreed to a minimum expenditure of $500,000 during the first six months of the agreement.  Anglo Platinum can earn an additional 9% interest in Pedra Branca (for a total of 60%) by completing a bankable feasibility study.  Anglo Platinum can also earn an additional 5% interest in Pedra Branca (for a total of 65%) by arranging for financing to put the project into commercial production.  Anglo Platinum completed its initial six-month expenditure in July 2003 and is now in the process of deciding whether or not to fund the second six-month $500,000 work commitment.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In July 2002, we signed an agreement with Bear Creek Mining Company ("Bear Creek") whereby Bear Creek can earn 51% interest in the La Pampa property by expending $4.5 million on exploration of La Pampa over a five-year period.  As part of the agreement, Bear Creek will pay all costs to maintain the concessions.  As part of the agreement Bear Creek must complete a minimum of 1,000 meters of drilling on the property.  Bear Creek may earn an additional 14% interest (for a total of 65%) by completing a bankable feasibility study on the property within two years of earning its 51% interest.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In August 2003, we signed an Option Agreement to acquire a 100% interest in the Triunfo gold-silver-lead-zinc property in west-central Bolivia.  Terms of the Option Agreement call for escalating payments totaling $185,000 over a four-year period to the underlying owners.  The first payment of $10,000 has been made.  A 100% interest in the property can be acquired at anytime within a five-year timeframe for a one-time payment of $1.0 million.  Solitario plans to spend a minimum of $100,000 during the first year as part of its five-year $2.3 million work commitment.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In December 1996, we signed an agreement regarding the Bongara project with a subsidiary of Cominco Ltd. ("Cominco") of Vancouver, British Columbia.   Cominco had the right to earn a 65% interest in the Bongara project by (among other things) spending a minimum of $17,000,000 over a five-year period from January 2000 forward.  Cominco paid us $118,000, including value added taxes of 18% in January 2000 and 1999.   In February 2001, Cominco terminated their option to acquire an interest in the Bongara project.  We currently hold a 100% interest in the project covering approximately 6,000 hectares and may seek a new joint venture partner to explore and develop this property.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Our exploration and development activities, funding opportunities and joint ventures may be materially affected by commodity prices and fluctuations.  Commodity market prices are determined in world markets and are affected by numerous factors beyond our control.</P>
<U><P ALIGN="JUSTIFY"></P>
</U><B><P ALIGN="JUSTIFY">Exploration Activities</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">A significant part of our business involves the review of potential property acquisitions and continuing review and analysis of properties in which it has an interest, to determine the exploration and development potential of the properties.  In analyzing expected levels of expenditures for work commitments and property payments, our obligations to make such payments fluctuate greatly depending on whether, among other things, we make a decision to sell a property interest, convey a property interest to a joint venture, or allow our interest in a property to lapse by not making the work commitment or payment required.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In acquiring our interests in mining claims and leases, we have entered into agreements, which generally may be canceled at our option.  We are required to make minimum rental and option payments in order to maintain our interest in certain claims and leases.  We estimate our final 2003 mineral property rental and option payments to be approximately $77,000 of which our portion is estimated to be approximately $52,000.   In 2004 we estimate mineral property rental and option payments to be approximately $137,000.  If our current joint venture partners elect to continue funding their respective joint ventures, 2004 rental and option payments would be reduced by approximately $79,000. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We charged operations $907,000 during 2002 compared to $1,464,000 during 2001 and $1,182,000 in 2000 for exploration expenditures on mineral properties.  The increase in the expenditures in 2001 is related specifically to drilling programs at both the Pedra Branca property in Brazil and the Rincon del Tigre property in Bolivia as well a general expansion of the focus of our exploration activities to include platinum group metals related to Altoro which increased the number and scope of properties to be evaluated and the number and cost of exploration personnel. Exploration charged to operations is exclusive of amounts spent on its properties by third parties. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We have budgeted $120,000 for exploration expenditures, to be charged to operations during 2003, which would be in addition to any expenditures by joint venture partners.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">New Accounting Pronouncements</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In April 2003, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 149 "Amendment of Statement 133 on Derivative Instruments and Hedging Activities" (SFAS No. 149") to amend and clarify financial accounting and reporting for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities. The changes in this statement improve financial reporting by requiring that contracts with comparable characteristics be accounted for similarly to achieve more consistent reporting of contracts as either derivative or hybrid instruments. SFAS 149 has been adopted by Solitario and will be applied prospectively for contracts entered into or modified after June 30, 2003.  The adoption of this statement has not had a material effect on Solitario's consolidated financial position or results of operations. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In May 2003, the FASB issued SFAS No. 150 "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity" (SFAS No. 150") which clarifies the classification as liabilities for certain financial instruments including equity shares that are mandatorily redeemable, or a financial instrument other than equity shares that has an obligation to repurchase the instrument with equity shares, including a conditional obligation to settle the financial instrument with equity shares.  SFAS No. 150 has been adopted by Solitario and is effective for financial instruments entered into after May 31, 2003.  The adoption of this statement has not had a material effect on Solitario's consolidated financial position or results of operations. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Emerging Issues Task Force is in the process of forming a committee to evaluate certain mining industry accounting issues, including issues arising from the implementation of Statement of Financial Accounting Standards No. 141 and Statement of Financial Accounting Standards No. 142 ("SFAS No. 142") to business combinations within the mining industry and accounting for goodwill and other intangibles. Although such committee has not yet been formed, and no formal agenda has been set, the issues related to the business combinations within the mining industry and accounting for goodwill and other intangibles may be addressed along with the related question of whether mineral interests conveyed by leases represent tangible or intangible assets and the amortization of such assets.  While Solitario believes that its accounting for its mineral interests conveyed by leases is in accordance with generally accepted accounting principles, Solitario cannot predict whether the deliberations of this 
committee will ultimately modify or otherwise result in new accounting standards or interpretations thereof that differ from its current practices. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In December 2002, the Financial Accounting Standards Board (the "FASB") issued Statement of Financial Accounting Standards No. 148, ""Accounting for Stock-Based Compensation - Transition and Disclosure - an amendment of FASB Statement No. 123"" ("SFAS&nbsp;No. 148").&nbsp; SFAS No. 148 amends Statement of Financial Accounting Standards No. 123, ""Accounting for Stock-Based Compensation"" (SFAS No. 123) to provide alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation.&nbsp; In addition, SFAS No. 148 amends the disclosure requirements of SFAS No. 123 to require prominent disclosures in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results.&nbsp; SFAS No. 148 is effective for financial statements for fiscal years ending after December 15, 2002. We will continue to account for stock based compensa
tion using the methods detailed in the stock-based compensation accounting policy.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In April 2002, the FASB issued SFAS No. 145, "Recission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections".  SFAS No. 145 eliminates inconsistencies between the accounting for sale-leaseback transactions and the required accounting for certain lease modifications.  This statement requires that gains and losses from debt extinguishment should be classified as extraordinary items only if they meet the criteria of Accounting Principles Board Opinion 30.  This Statement also amends existing authoritative pronouncements to make various technical corrections, clarify meanings or describe their meanings under changed conditions.  We adopted SFAS 145 as of January 1, 2003.  The adoption of this Statement has not had a material effect on our financial position or results of operations. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In June of 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities", which addresses financial accounting and reporting for costs associated with these activities and generally requires that a liability for a cost associated with an exit or disposal activity shall be recognized and measured initially at its fair value in the period in which the liability is incurred.  SFAS does not apply to costs associated with the retirement of long-lived assets covered by FASB Statement No. 143.  SFAS 146 will be applied prospectively and is effective for exit or disposal activities initiated after December 31, 2002.</P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">In June 2001, the FASB issued SFAS No. 143 ""Accounting for Asset Retirement Obligations"". Under SFAS 143, the fair value of a liability for an asset retirement obligation covered under the scope of SFAS 143 would be recognized in the period in which the liability is incurred, with an offsetting increase in the carrying amount of the related long-lived asset. Over time, the liability would be accreted to its present value, and the capitalized cost would be depreciated over the useful life of the related asset. Upon settlement of the liability, an entity would either settle the obligation for its recorded amount or incur a gain or loss upon settlement.    We have adopted Statement 143 as of January 1, 2003. The effect to us of adopting this standard is not material.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
<B><P ALIGN="CENTER">BUSINESS </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">General</P>
<U><P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">We operate in one segment, mining geology and exploration.  Our operations are currently confined to Peru, Bolivia and Brazil.  We have in the past and expect that we will in the future limit our activities to the evaluation and exploration of mining properties in South America.  As of November 21, 2003, we had four full-time employees, all located in South America.  We extensively utilize contract employees and laborers to assist us in the exploration on most of our projects. Upon the spin-off of our shares and upon the completion of the merger between Crown and Kinross, we anticipate the Management Agreement with Crown will be terminated and the Crown management team will resign their respective positions at Crown and will continue to serve our business on a full time basis, thereby increasing our number of employees.  In the event that the Kinross transaction is not completed, we anticipate that we would continue to operate under the Management Agreement with Crown.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In the past, we have received revenues related to interest income on invested cash balances and from the sale of mineral property interests.  Revenues from the sale of our mineral property interests have in the past been infrequent and have occurred at irregular intervals.  Any revenues from the sale of mineral property interests in the future would also be infrequent and at irregular intervals.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The acquisition, exploration and development of mineral properties require significant expenditures prior to the commencement of production.  We have in the past financed our activities through the sale of securities, joint venture arrangements and the sale of mineral property interests.  To the extent necessary, we expect to continue to use similar financing techniques. There can be no assurance that such financing will in the future be available to us on acceptable terms, if at all.  </P>
<P ALIGN="JUSTIFY">Competition and Markets</P>
<B><P ALIGN="JUSTIFY"></P>
</B><P ALIGN="JUSTIFY">A large number of companies are engaged in the exploration and development of mineral properties, many of which have substantially greater technical and financial resources than we do.  Therefore, we may be at a disadvantage with respect to many of our competitors in the acquisition, exploration and development of mining properties.</P>
<P ALIGN="LEFT">Foreign Operations</P>
<B><P ALIGN="JUSTIFY"></P>
</B><P ALIGN="JUSTIFY">We have property interests in Peru, Bolivia and Brazil and held property interests in Argentina until March 1998.  These countries have, from time to time, experienced periods of political and economic instability.  Foreign properties, operations and investments may be adversely affected by local political and economic developments, including nationalization, exchange controls, currency fluctuations, taxation and laws or policies as well as by-laws and policies of the United States affecting foreign trade, investment and taxation.  Furthermore, it is particularly important that we maintain good relationships with the governments in the countries in which we operate.  We may not be able to maintain such relationships if the governments or policies related to mining in these countries change.  Certain other regions in which we may conduct operations have also been subject to political and economic instability, creating uncertainty and the potential for a loss of resources dedicated to th
ese regions.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The marketing of minerals is affected by numerous factors, many of which are beyond our control.  Among factors beyond our control are the price of the raw or refined minerals in the marketplace, imports of minerals from other countries, the availability of adequate milling and smelting facilities, the price of fuel, the availability and the cost of labor, and the market price of competitive materials.   </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Regulatory Environment</P>
<U><P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">The development, production and sale of minerals are subject to federal, state, provincial and local regulation in a variety of ways, including environmental regulation and taxation.  These regulations vary depending on the country in which mineral property is held.  Generally, federal, state, and local environmental regulations have a significant effect on all companies, including ours, engaged in mining or other extractive activities, particularly with respect to the permitting requirements imposed on such companies, the possibilities of project delays, and the increased expense required to comply with such regulations.  We believe we are in substantial compliance with all such regulations in all the jurisdictions in which we operate. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We are subject to income taxes, state and local franchise taxes, personal property taxes, value added taxes, and mineral severance taxes levied by various governmental units in the countries in which we operate.  Mineral severance taxes vary between countries and, within a single country, the amount of tax, based on a percentage of the value of the mineral being extracted, varies from mineral to mineral.  Our operations may also subject to taxation by each locality in which we own mineral properties or do business.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Mineral Projects</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Pedra Branca Platinum Group Metals Project, Brazil</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">1.&nbsp;&nbsp;<U>Property Description and Location</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We are exploring the Pedra Branca property for platinum and palladium mineralization (platinum group metals, or "PGM").  We hold 65 exploration concessions in Ceara State, Brazil comprising the Pedra Branca Project at October 31, 2003, which totaled approximately 69,244 hectares. Altoro Minera&ccedil;cao Ltda., a subsidiary of ours incorporated in Brazil, holds all 65 claims. Altoro signed an agreement in 1999, which was modified in 2000 and 2003, with Eldorado Gold Corporation ("Eldorado") whereby we could have earned a 70% interest in concessions covering approximately 10,000 hectares, by spending $2,000,000 on exploration by August 2003.  However, we elected not to complete the earn-in requirement and the Eldorado lease expired without Solitario earning any interest in the leased concessions.   In October 2003, we reacquired a 100%-interest in concessions within the previously leased Eldorado area.  Eldorado is entitled to a 2% NSR royalty on these reacquired properties.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">On January 28, 2003 we entered into an agreement with Anglo Platinum whereby Anglo Platinum may earn a 51% interest in the Pedra Branca Project, by spending $7 million on exploration at Pedra Branca over a four-year period.  Anglo Platinum agreed to a minimum expenditure of $500,000 during the first six months of the agreement.  Anglo Platinum can earn an additional 9% interest in Pedra Branca (for a total of 60%) by completing a bankable feasibility study.  Anglo Platinum can also earn an additional 5% interest in Pedra Branca (for a total of 65%) by arranging for financing to put the project into commercial production.  Anglo Platinum has met its minimum required expenditure for the first six months and is currently reviewing the results of the first six month (Phase one) exploration program, before making a decision to fund the second phase of the Pedra Branca Project exploration program.  If Anglo Platinum declines to continue, Solitario will retain 100% of the Pedra Branca Project.  <
/P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Land payments for 2004 are projected to be approximately $37,000. This amount may change due to the reduction or addition of properties, or a change in the currency exchange rate.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The mineral rights held by us within the property are subject to the mining regulations of Brazil.  These rights are granted by the Brazilian government and administered by the National Department of Mineral Production ("DNPM") for a period of time, subject to its discretion, generally for an initial period of three years.  At its discretion, the DNPM may grant extensions upon the request of the licensee.  We must provide the government with work plans and it is subject to yearly inspections by the DNPM for compliance with reported plans and mining and environmental regulations.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Prior to mining on the claims we must reach an agreement with the surface rights owners of the affected land.  Additionally, we must pay a royalty to governmental agencies based on the materials produced.  This amount is 0.2% of the sales for precious metals excluding gold, which is subject to a 3% royalty.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We currently hold no surface rights to the property but have entered into short-term agreements with the surface rights owners to compensate for exploration activities.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">A number of prospects have been located on the property, which have undergone surface, and in some cases, drill exploration.  A total of 15 prospects have been located throughout the property with surface showings of significant geochemical values.   Drilling has intersected significant mineralization on six of these prospects. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">2.&nbsp;&nbsp;<U>Accessibility, Climate, Local Resources, Infrastructure and Physiology</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Access to the property is by paved road from the state capital of Forteleza in Ceara State and by local farm roads.  Where necessary, local access is constructed.  The largest towns in the immediate vicinity of the project are Pedra Branca and Boa Viagem.  A field camp is located at the small community of Capitao Mor.  The climate is warm and dry for eight months of the year with a warm wet season prevailing for the remaining four months.  Year-round operation can be conducted.  The topography is rolling to flat and vegetation is sparse to heavy brush.  The elevation in no location exceeds 800 meters.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">3.&nbsp;&nbsp;<U>History</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In the 1980''s Rio Tinto Ltd., ("Rio Tinto") and Gencore, Ltd. ("Gencore") performed exploration work on part of the property now operated by us.  Both companies did surface exploration and drilling, including 42 diamond drill holes by Rio Tinto and 8 diamond drill holes by Gencore on the former Eldorado lease.   In 2000 Altoro acquired the concessions from the government over the property previously held by Rio Tinto.   We acquired additional concessions in 2000 and 2001 to cover extensions of the mineralized trend. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Altoro, prior to the Plan of Arrangement with us, conducted surface work and drilled 18 diamond drill holes.  Subsequently, Altoro entered into a Joint Venture agreement with Rockwell Ventures, Inc. ("Rockwell") of Vancouver, British Columbia under which Rockwell conducted further surface exploration and drilled an additional 31 holes.  Rockwell terminated its agreement with Altoro in June 2001.  From July 2001 until January of 2003, we conducted geochemical sampling, geophysical surveys and drilled 54 diamond drill holes.  From January through July 2003, Anglo Platinum funded a drilling program that focused on better defining the Esbarro, Curiu and Cedro prospects.  A total of 178 core holes have been drilled on the property to date.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">4.&nbsp;&nbsp;<U>Geological Setting</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The project lies within an Archean-aged block in the Brazilian shield, which is characterized by amphibolite grade metamorphic rocks of various compositions.  The most common rock types in the area are unmineralized intermediate to felsic composition gneisses and granitic intrusive phases.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The PGM mineralization occurs in specific stratigraphic intervals within a segmented mafic-ultramafic layered complex.  The mineralized intervals comprise concordant layers, originally of composition varying from peridotite to dunite.  These layers contain chromite and/or minor sulfides of iron, copper and/or nickel.  The primary silicate ultramafic minerals in the rocks have been variably converted to amphibole, serpentine or talc.  A number of separate bodies of the ultramafic phases of the complex have been discovered, some of which contain the PGM-bearing stratigraphic intervals.  All of the rocks have been folded and faulted to differing degrees during dynamic metamorphism in the area.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">5.&nbsp;&nbsp;<U>Exploration</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Surface exploration conducted, initially by Altoro, and subsequently by Rockwell and then us, consists of:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reconnaissance geologic mapping and rock sampling</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Systematic line cutting, soil sampling and geologic mapping of lines</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ground magnetics</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stream sediment and panned-concentrate geochemistry</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diamond drilling of twelve prospect areas</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">All of the above work has been conducted directly by us, our predecessor or its partners with the exception of diamond drilling which was performed by Boart-Longyear Geoserv do Brasil and Major Drilling.  Ground magnetometry was conducted primarily using a Scintrex Portable EnviMag model number 788011 hand-held magnetometer with a base station for recording diurnal corrections.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Soil and rock surveying conducted to date shows that both methods reliably reflect the location of outcropping and subcropping PGM mineralization.  Twenty areas with significant soil and/or rock anomalies have been located within the area covered by line gridding.  Detailed geologic mapping has been conducted over the majority of these locations to determine the source of anomalous PGM values.  Further, basic work of this nature is planned in future programs to more fully determine the potential of the entire property.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The targeted ultramafic rocks are generally more magnetic than the surrounding rocks and magnetometry has been shown to be effective at locating these bodies, though magnetometry and surface geochemical sampling does not determine the PGM content of an ultramafic body with certainty.  Additional ground magnetometry is planned to locate potential buried targets and to direct surface exploration techniques to define outcropping and subcropping bodies.  Drilling has successfully intersected potentially ore-grade PGM mineralization in several areas.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We believe the data obtained from the above exploration activities to be reliable, however the nature of exploration mineral properties and analysis of geological information is subjective and data and conclusions are subject to uncertainty including invalid data as a result of many reasons, including sample contamination, analysis variation, extrapolation, and the use of geologic and economic assumptions. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">6.&nbsp;&nbsp;<U>Mineralization</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The stratigraphic layering of an ultramafic body controls the PGM content of the ultramafic rocks.  In many cases the PGM grade is associated with the mineral chromite.  In other areas the PGM is more closely related with minor sulfide concentration.  However, the presence of either chromite or sulfides within ultramafic rocks does not assure elevated PGM grade.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Within PGM-enriched ultramafics, grade can vary from several hundred parts per billion up to tens of grams per metric tonne ("g/t").  However, using a cutoff grade of 0.7 g/t combined PGM, typical composited grades encountered in drill holes average from one to five g/t.  Widths encountered vary from several to tens of meters in interpreted true thickness.  In no location has drilling been conducted on spacing of sufficient density to assure the continuity necessary to define reserves.  For this reason no representation can be made as to the probability of defining reserves.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">7.&nbsp;&nbsp;<U>Drilling</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">A total of 178 holes totaling 12,646 meters of core drilling have been completed on the project to date.  Of this, 3,217 meters were drilled by Rio Tinto and Gencore for which the core itself is not available, nor are the procedures documented under which the holes were completed.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In the case of holes drilled by Altoro, Rockwell and us, the following procedures were followed.  Drill holes were either of NQ (1 and 7/8 inch) or HQ (2 and 1/2 Inch) diameter and were boxed in the field under the supervision of the geologist in charge.  With the exception of weathered material near surface, at least 90% of the core had recoveries exceeding 90%.  The core was transported to the field camp in sealed core boxes where processing took place under the supervision of the geologist in charge.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Based on drill results to date we believe the prospects Esbarro, Cedro, Curiu, and Santo Amaro North exhibit results warranting further definition drilling of high priority.   We are planning on drilling additional targets in future programs.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Esbarro prospect, with 99 holes, has the largest database of information of the drilled prospects.  Drilling was conducted on fences spaced at approximately 50 meters apart and drill holes averaging 50 meters apart.  A high percentage of holes have intersected potentially ore-grade material but the spacing of the drill holes is currently insufficient to substantiate the continuity necessary to define a reserve.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Curiu prospect is the second most detailed prospect drilled to date with 15 holes completed to date.  Drilling was conducted on approximately 25-meter spaced centers.  A high percentage of the holes intersected potentially ore-grade mineralization often exceeding 3 g/t PGM.  Additional drilling is recommended before a reserve can be estimated for this deposit.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The inability to resample the drilling of Rio Tinto core holes has reduced the confidence, which would normally be attributed to these results.  However, one twin hole drilled next to a Rio Tinto hole at Esbarro showed excellent reproducibility of results.  During the current exploration phase of the program, the Rio Tinto and Gencore results are accepted as accurately representing the sampled interval.  However, in order to establish a resource or reserve, additional twin holes and/or infill holes are necessary to provide a degree of confidence commensurate with assignment to these categories.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">8.&nbsp;&nbsp;<U>Sampling and Analysis</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Following is a tabulation of samples taken through October 2003, which are assigned a high degree of confidence in relation to location, type and sample procedure.</P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=288>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="CENTER">Sample Type</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="CENTER">Number of Samples</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="LEFT">Core</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="CENTER">6,411</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="LEFT">Rock/channel</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="CENTER">2,531</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="LEFT">Soils</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="CENTER">20,640</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="LEFT">Stream Sediments</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="CENTER">2,531</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="LEFT">Panned Concentrates</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="CENTER">840</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Rock sampling generally employed the use of composite surface samples, which are representative aggregates of available material from an outcrop or sub-cropping body collected on the surface.  Selective sampling was occasionally used to identify the geochemical character of a rock not representative of an outcrop.  This technique represents a small percentage of the total samples collected.  Soil samples were collected of soil horizons thought to be derived from the decomposition of underlying bedrock.  Soils were screened to -80 mesh prior to pulverization.  Stream sediment geochemistry has been applied to both active wet stream beds and dry stream beds.  Panned concentrate sampling of both dry and wet stream beds has been effectively utilized on a regional basis.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No known significant factors relating to sampling, drilling or recovery exist that are thought to have an impact on interpreted results.  Core recovery is rarely less than 90%, but such cases are sufficiently uncommon as to not have an adverse effect on the interpretation of results.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Assays results for the Rio Tinto and Gencore core samples cannot be checked, as the core is not available for resampling.  For all other samples, assaying for PGM was done by Bondar Clegg Laboratories of Vancouver, British Columbia, Canada.  Check assays were performed by Altoro prior to our merger with them, and by Rockwell Ventures.  All of our programs have been, and will continue to be conducted under a check assay program in progress with samples sent to a third party laboratory (Lakefield Laboratories).  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">9. <U>Security of Samples</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Core samples are sawn on site into two halves, one submitted to the laboratory and one kept in a secure location on site.  The half-core, selected according to geologic criteria or regularly spaced intervals, is sent by land or air to the sample preparation laboratory in Goiania, Brazil operated by Bondar Clegg Laboratories.  The samples are sealed on site under the supervision of the geologist in charge and the laboratory is instructed to report any breaks in the seal to the Project Manager.  No such security breaches have been noted since Solitario has taken over operation of the project.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">10. <U>Mineral Resource and Mineral Reserve Estimations</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">There are no reported reserves or resources.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">11.<U>  Mining Operations</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">There are no current mining operations associated with this project.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">12. <U>Exploration and Development</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Further exploration is planned in 2004 including additional geophysics, geologic mapping, geochemical sampling and core drilling as warranted by results in hand and resources available.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Triunfo Gold-Silver Property, Bolivia</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">1.&nbsp;&nbsp;<U>Property Description and Location</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We are exploring the Triunfo property for gold-silver-lead and zinc.  The property position consists of three concessions totaling 256 hectares.  We announced that an Option to Purchase ("Option") the concessions was signed with private Bolivian individuals ("Vendors") controlling the concessions in August 2003.  The option calls for Solitario to spend $2.3 million on exploration and development over a five-year period.  The first year work commitment is $100,000 and the second year is $200,000 with escalating commitments thereafter.  The vendors may receive payment of up to $185,000 over the first four years, with an option for us to acquire a 100% interest in the property by making a one-time payment of $1.0 million by the fifth anniversary of the signing of the Option.  The first $10,000 payment has been made with payments of $15,000, $25,000 and $35,000 due six, twelve and eighteen months from the date of signing.  We may elect to terminate the Option at anytime without any additional 
payment or work commitment obligations due to the Vendor.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">2.&nbsp;&nbsp;<U>Accessibility, Climate, Local Resources, Infrastructure and Physiology</P>
<P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">The property is located about 50 kilometers east of the Bolivian capital of La Paz at an elevation of approximately 4,500 meters.   Access is gained by a well-maintained gravel road from La Paz.  We have completed construction of a 2.5-kilometer road to the property significantly upgrading access. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Climate is typical of the Bolivian altoplano that varies from cool dry weather to sub-freezing days with significant snow and wind.  Although located relatively near La Paz, the nearest small village of Tres Rios is situated six-kilometers to the southeast.  The surrounding area has high relief and the property is positioned between the mountains of Illimani and Mururata, both over 6,000 meters high.  Vegetation is very sparse. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">3.&nbsp;&nbsp;<U>History</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Not much is known about the history of mining on the property.  During the past ten years, the Vendors excavated a 50-meter long adit to sample a part of the mineralized area.  Prior to the Vendors work, it is believed that several other adits were excavated into other parts of the mineralized zone, but these tunnels have subsequently collapsed. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">4. <U>Geological Setting</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The geology of the Triunfo project consists of Paleozoic-aged interlayered shales, black shales, siltstones and quartzites.  These rock formations have been faulted and folded.  Two large granitic batholiths occur to the north and south of the property.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">5. <U>Exploration</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We began surface exploration activities in August 2003, and consequently only a limited amount of surface exploration consisting of detailed geologic mapping and channel sampling has been completed.  Mapping has indicated that the main area of interest occurs along an east-west trending anticline with an interpreted steep fault along its axis.  To date, geochemical results for 132 rock chip samples have been received.   An induced-polarization geophysical survey to further develop drill targets is planned in early 2004. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">6. <U>Mineralization</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The property hosts a large mineralized area extending for at least 800 meters in length and up to 200 meters in width.  Mineralization occurs as a stockwork zone of veining within a sequence of Paleozoic shales, siltstones and quartzites.  The veining is generally steeply dipping and trends east-west parallel with the axis of folding.  Within the mineralized zone, surface sampling has returned values up to 9.0 g/t gold, averaging slightly over 0.8 g/t gold; silver values up to 242 g/t, averaging about 30 g/t silver; and lead and zinc values averaging 1.0% and 0.5%, respectively. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">7. <U>Drilling</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">No drilling has been conducted on the property.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">8. <U>Sampling and Analysis</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">To date, 132 rock chip samples have been conducted over select parts of the property.  The sampling procedure consists of chipping pieces of rock with a hammer from outcropping rock formations over a continuous length of usually five meters.  The axis of the five-meter long sample is oriented perpendicular to the trend of veining, wherever possible.  The samples are placed in cloth or plastic bags, labeled and sealed, and then sent to ALS Chemex laboratories for analysis.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">9. <U>Security of Samples</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Surface rock chip samples collected are sealed within a cloth or plastic bag by the geologist and stored in a secure area until shipped to the laboratory via bus transportation.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">10. <U>Mineral Resource and Mineral Reserve Estimations</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">There are no reported reserves or resources.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">11.  <U>Mining Operations</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">There are no current mining operations associated with this project.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">12. Exploration and Development</P>
<B><P ALIGN="JUSTIFY"></P>
</B><P ALIGN="JUSTIFY">Detailed geologic mapping and channel sampling is expected to continue through early November 2003.  An induced polarization geophysical survey is planned for 2004.  The results of the geologic mapping, geochemical sampling and geophysical survey will be compiled an evaluated to determine the best location for drill testing the property.  If we determine that favorable drill targets have been defined by our work, we would then anticipate a drilling campaign in mid-2004.  We might also seek a joint venture partner to fund this drilling.</P>
<B><P ALIGN="JUSTIFY"><BR>
Bongara Zinc Project, Peru</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">1.  <U>Property Description and Location</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Bongara property consists of 10 concessions comprising 6,000 hectares of mineral rights granted to Minera Bongara S.A., a subsidiary of ours incorporated in Peru.  The property is located in the Department of Amazonas.  All of the claims are owned 100% by us and have no underlying agreements or royalty obligations.  According to Peruvian law, concessions may be held indefinitely, subject only to payment of annual fees to the government.  Each year a payment of $3.00 per hectare must be made by the last day of June to keep the claims in good standing.  Land payments made in 2003 were $21,600 and payments in 2004 are projected to be the same.  These payments included $3,600 in penalty charges for one of the concessions. </P>
</FONT><FONT SIZE=2 COLOR="#ff0000"><P ALIGN="JUSTIFY"></P>
</FONT><FONT SIZE=2><P ALIGN="JUSTIFY">We have a surface rights agreement with the local community, which controls the surface of the primary area of interest.  This agreement provides for an annual payment of $5,000 in return for the right to perform exploration work including road building and drilling.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">An environmental permit is required for advanced exploration projects in Peru.  The requisite environmental and archeological studies have been completed and the permit has been granted for future exploration activities subject to approval of amendments describing annual planned work.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">2.  <U>Accessibility, Climate, Local Resources, Infrastructure and Physiology</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Bongara property is accessed by the paved Carretera Marginal road, which provides access from the coastal city of Chiclayo.  The area of the majority of past drilling and the most prospective mineralization is currently inaccessible by road, the work to date having been done by either foot or helicopter access.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The climate is tropical jungle and the terrain is mountainous.  Seasonal rains hamper exploration work for four to five months of the year by limiting access by road.  A small village is located approximately four kilometers from the drilling area.  The nearest larger town is Pedro Ruiz, which is a base of operations for the project on the main road.  We have located a project office in Pedro Ruiz during exploration activities. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">3.  <U>History</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We discovered the Florida Canyon mineralized zone of the Bongara Project in 1996.  Subsequently, we optioned the property in December 1996 to Cominco.  Cominco withdrew from the joint venture in February 2001.  All of the significant work on the property has been conducted by Cominco and is described below in section 5, <U>Exploration</U>.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">4. <U>Geological Setting</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The geology of the Bongara area is relatively simple consisting of a sequence of Jurassic and Triassic clastic and carbonate rocks which are gently deformed.  The Mississippi Valley type mineralization occurs in the carbonate faces of this sedimentary sequence. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">5. <U>Exploration</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We conducted a regional stream sediment survey and reconnaissance geological surveys leading to the discovery of the Florida Canyon area.  The discovered outcropping mineralization is located in two deeply incised canyons within the limestone stratigraphy.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Subsequent to our initial work, Cominco conducted extensive mapping, soil and rock sampling, stream sediment surveys and drilling.  This work was designed to determine the extent and grade of the zinc-lead mineralization and the controls of deposition.  All work performed by us or Cominco was done by direct employees of the respective companies with the exception of the drilling which was performed by Bradley Drilling Co.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">6. <U>Mineralization</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Mineralization occurs as massive to semi-massive replacements of sphalerite and galena localized by specific sedimentary facies within the limestone stratigraphy and by structural feeders and karst breccias.  A total of eleven preferred beds for replacement mineralization have been located within the middle unit of the Chambara Formation.  Mineralization is associated with the conversion of limestone to dolomite, which creates open spaces within the rock formations, promoting the passage of mineralizing fluids through the rock formations.  Karst features are localized along faults, in particular the Sam Fault, which cuts the Chambara formation in a north-northeasterly direction.  Mineralized karst structures are up to fifty meters in width.  The stratigraphically controlled mineralization is typically several meters in thickness but locally attains thicknesses of eight to ten meters.  Thinner intercepts of only a meter may prove to be economic where grades exceed 12%.  Generally the strati
graphic mineralization, while thinner, is of higher grade, reaching in excess of 15% zinc in many areas.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The middle unit of the Chambara formation, where mineralized, is commonly dolomitized within the zone of highest sedimentary-induced permeability.  Dolomitization reaches stratigraphic thicknesses in excess of 100 meters locally.  This alteration is thought to be related to the mineralized event in some cases and is an important exploration tool.  Continuity of the mineralization is thought to be demonstrable in areas of highest drilling density by correlation of mineralization within sedimentary facies typical of specific stratigraphic intervals.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">7. <U>Drilling</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">A total of 81 diamond drill holes (HQ and NQ size) have been completed at the Florida Canyon Prospect.  These holes vary in depth up to 610 meters.  The geologic targets that these holes test are nearly evenly divided between near-vertical karst hosted targets and near-horizontal stratigraphically-controlled mineralization.  The mineralized area that has been drilled measures approximately two by two kilometers.  All drilling was done by a LF-70 core-drilling rig.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Drilling on stratigraphic targets has shown that certain coarser bioclastic or pseudo-breccia facies of the stratigraphy are hosts for mineralization.  Although the mineralization intersected in adjacent holes within the same stratigraphic unit often appears to be continuous, the drill spacing of approximately 100 meters is insufficient to define a reserve or resource in Mississippi Valley type deposits.  Typical grade of stratigraphically controlled mineralization is 10-11% zinc using a 5% zinc cutoff grade.  Similarly, the drilling on the karst style of mineralization is of insufficient density to define a resource or reserve.  Typical grades of karst mineralization using a 5% zinc cutoff are 8-10%.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">8. <U>Sampling and Analysis</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Rock samples taken were composited from mineralization or alteration within an outcrop.  The samples were pulverized and analyzed by Inductively Coupled Plasma (ICP) for a variety of elements including zinc and lead.  Soil samples were screened to -80 mesh prior to pulverization and analysis by ICP.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Core samples were transported from the drill by helicopter in sealed boxes to the processing facility in Pedro Ruiz where they were split by a diamond saw.  Half of the core was selected according to geologic criteria under the supervision of the geologist in charge and shipped in sealed bags by land to SGS Laboratories in Lima, where all samples were analyzed by ICP.  Any samples that contained greater than 1% zinc, were then analyzed by wet chemistry assay for zinc and lead to provide a more accurate analysis of grade.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The following is a summary of samples taken and analyzed according to type within the Florida Canyon area.</P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=426>
<TR><TD WIDTH="51%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="LEFT">Sample Type</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="CENTER">Number of Samples</FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="JUSTIFY">Core</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="CENTER">1,970</FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="JUSTIFY">Rocks</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="CENTER">3,326</FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="JUSTIFY">Stream Sediments</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="CENTER">217</FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="JUSTIFY">Soils</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="CENTER">7,733</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">It was found that ICP systematically underestimated the true grade in high-grade samples in excess of 1% zinc.  This systematic error varies according to grade with the higher samples having the largest error.  The average error of all reported core results for ICP was approximately 10% below the true grade.  All grades reported to the public have been based on assay rather than geochemical techniques in order to represent the most accurate data possible.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">9. <U>Security of Samples</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> As described above the geologist in charge supervised the control of the core sample handling from the drill to the sample preparation facility and in the preparation itself.  Sealed containers were used for shipping the samples to the laboratory.  No breaches of security of samples are known to have occurred.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">10. <U>Mineral Resource and Mineral Reserve Estimations</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">There are no reported mineral reserves or resources.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">11.<U> Mining Operations</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No mining operations have occurred on the property.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">12. <U>Exploration and Development</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Bongara project is on care and maintenance only until commodity prices for zinc and lead improve.  </P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="JUSTIFY">La Pampa Gold Property, Peru</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">1.  <U>Property Description and Location</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The La Pampa property consists of four claims, covering 3,400 hectares located in the Department of Lambayeque in west-central Peru.  Minera Solitario Peru S.A., a subsidiary of ours incorporated in Peru, owns the claims.  No underlying agreements or royalties exist for these claims.  According to Peruvian law concessions may be held indefinitely subject only to payment of annual fees to the government.  A payment of $3.00 per hectare must be made by the last day of June to keep the claims in good standing.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In July 2002, we signed an agreement with Bear Creek Mining Company ("Bear Creek") whereby Bear Creek can earn 51% interest in the La Pampa property by expending $4.5 million on exploration of La Pampa over a five-year period.  As part of the agreement, Bear Creek will pay all costs to maintain the concessions.  As part of the agreement Bear Creek must complete a minimum of 1,000 meters of drilling on the property.  Bear Creek may earn an additional 14% interest (for a total of 65%) by completing a bankable feasibility study on the property within two years of earning its 51% interest.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">2.  <U>Accessibility, Climate, Local Resources, Infrastructure and Physiology</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The property is accessed by paved road from the coastal city of Chiclayo.  The terrain is flat to rolling and is dry and hot most of the year.  Operations can be performed year-round.  No towns or infrastructure exist on the property but the small community of Chongoyape is nearby.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">3.  <U>History</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We claimed the property in 1999 and have conducted only surface sampling and geologic mapping on the project.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">4. <U>Geological Setting</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The rocks in the area belong to the Oyutun volcanics, which are intermediate composition lava and ash flow tuffs.   The layers of volcanic rocks are generally only slightly tilted and folded with minor faulting.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">5. <U>Exploration</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We have collected rock samples on the surface consisting of composite, select and channel samples.  Geologic mapping has revealed a large system of hydrothermal alteration contained within certain volcanic units and also along structural features.  Bear Creek has conducted approximately 1,100 meters of trenching across the mineralized zone.  Geochemical sample results from the trenching program are pending.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">6. <U>Mineralization</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Gold enrichment occurs in silicic and phyllic alteration types within the volcanic stratigraphy.  The gold is associated with small (&lt;1%) concentrations of pyrite, most commonly associated with silica flooding, which comprises more than 90% of the rock.  Little silver or other economic elements occur with the gold.  Typical gold values within the mineralized zone range from several hundred parts per billion gold up to 10 g/t gold for select samples.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">7. <U>Drilling</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No drilling has been conducted on the property.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">8. <U>Sampling and Analysis</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Rock samples were collected as composites of specific rock types or as select samples of quartz-flooded lithologies associated with structures or bedding.  In some cases channel samples were taken of structures up to 200 meters in width or of volcanic lithologic units up to 80 meters in thickness.  A total of 809 rock and channel samples have been taken to date.  Only 11 stream sediment samples have been collected and analyzed.  The rocks were shipped to Actlabs preparation laboratory in Lima and the pulp were analyzed in their laboratory in Lancaster, Ontario.   No duplicates or replicate analyses have been taken.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">9. <U>Security of Samples</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The geologist in charge has supervised the collection and shipping of the samples by ground transportation to the sample preparation facility in Lima.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">10. <U>Mineral Resource and Mineral Reserve Estimations</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No resources or reserves have been delineated on the property.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">11.  <U>Mining Operations</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No mining is conducted on the property.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">12. <U>Exploration and Development</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Bear Creek Mining is planning to conduct a 1,000-meter core-drilling program starting in early January 2004.  If results warrant, Bear Creek anticipates additional follow-up drilling.</P>
<B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Sapalache Gold Project, Peru</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">1.  <U>Property Description and Location</P>
<P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">The Sapalache gold project is located in the Department of Piura, Peru near the town of Huancabamba.  The project consists of two claims that are held by a third party on behalf of Solitario. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">2.  <U>Accessibility, Climate, Local Resources, Infrastructure and Physiology</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The town of Huancabamba is accessed by paved and unpaved roads from the town of Chiclayo.  The area is mountainous varying in altitude from 3,000 to over 4,000 meters.  A rainy season of approximately four months hampers exploration and access, but year-round work can be done.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">3.  <U>History</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The claims were staked in 1999 by a third party on behalf of us.  No previous work is known to have been done in the area.  We have no liabilities for royalties or underlying payments.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">4. <U>Geological Setting</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The area is underlain by Tertiary volcanic rocks of the Llama Formation, which are gently deformed.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">5. <U>Exploration</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We have conducted reconnaissance mapping and sampling, primarily during 1999.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In 1999 we entered into an agreement with AngloGold whereby AngloGold could earn 51% of the rights to the claims with an expenditure of $6,000,000.  During 2000, AngloGold collected rock samples, conducted geologic mapping and drilled four diamond core holes under this agreement.  The results of the drilling were sub-economic, intersecting anomalous gold and locally high grade but thin intervals of greater than 1 g/t.  All of the work performed on the property was done directly by AngloGold or us with the exception of diamond drilling which was performed by Esondi S.A.  AngloGold terminated the agreement in 2000.  Although we have no immediate exploration planned for Sapalache, we are holding this property for potential joint venture in the future.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">6. <U>Mineralization</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Gold mineralization is found in structures ranging from 1 to 100 meters in width, which have been variably altered to silica and phyllic mineral assemblages.  Minor amounts of pyrite are common.  Trace amounts of galena have been observed.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">7. <U>Drilling</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">AngloGold drilled four holes ranging from 83 to 164 meters, totaling 601 meters.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">8. <U>Sampling and Analysis</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Rocks samples were taken as composites of outcrops of silicified volcanics.  Core was selectively sampled and split with a core saw and assayed by ALS laboratories for Au and a suite of ICP trace elements.  No check assays were done.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Following is a listing of samples taken and analyzed by sample type.</P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=432>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="JUSTIFY">Sample Type</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="CENTER">Number of Samples</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="JUSTIFY">Rocks</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="CENTER">522</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="JUSTIFY">Core</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="CENTER">510</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="JUSTIFY">Soils</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="CENTER">229</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="JUSTIFY">Stream Sediments</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="CENTER">122</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">9. <U>Security of Samples</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The chain of custody procedures for sampling performed by AngloGold are not known.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">10. <U>Mineral Resource and Mineral Reserve Estimations</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No mineral reserves or resources are reported on the property.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">11.<U>  Mining Operations</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">There are no mining operations on the property.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">12. <U>Exploration and Development</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No exploration is currently planned for the property in 2004. We intend to seek a joint venture partner to fund further exploration on this property.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="LEFT">La Tola Gold Project, Peru</P>
</B><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">1.  <U>Property Description and Location</P>
</U><P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">In October 2003, we acquired the La Tola project to explore for gold and possible silver.  The project is located in southern Peru and consists of 11 concessions totaling 9,800 hectares.  We own a 100%-interest in the concessions without any underlying owners or royalties.  According to Peruvian law claims may be held indefinitely subject only to payment of annual fees to the government.  A payment of $3.00 per hectare must be made by the last day of June each year to keep the concessions in good standing.  These payments to the government of approximately $26,700 were made in 2003 and an equal amount will be due in 2004 to keep all the concessions in good standing.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">2.  <U>Accessibility, Climate, Local Resources, Infrastructure and Physiology</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The town of Callalli is accessed by approximately 150 kilometers of paved and unpaved roads from the city of Arequipa in southern Peru.  The area is situated in the alta plano geomorphic region that consists of gently rolling hills varying in altitude from 3,800 to over 4,800 meters.  A rainy season of approximately four months from December through March is relatively mild allowing for year-round work.  Vegetation in the area consists of alpine tundra type conditions.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">3.  <U>History</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We staked the 11 concessions in 2003.  No previous work is known to have been conducted in the area.  We have no obligation for royalties or underlying payments.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">4. <U>Geological Setting</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The area is underlain by Tertiary volcanic rocks typical of the gold-bearing volcanic field situated throughout the central part of Peru.  The area is cut by structure that have undergone hydrothermal alteration, but with very little structural deformation.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">5. <U>Exploration</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We have conducted reconnaissance rock chip sampling in 2003.  Additional rock chip sampling, soil sampling and mapping is currently being conducted.  If results warrant, drilling is planned for 2004.  Bedrock exposures are quite limited throughout the area.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">6. <U>Mineralization</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Gold mineralization is found in structures ranging from 1 to several meters in width and in wallrock that has been variably altered to silica, argillic and/or phyllic mineral assemblages.   Quartz and barite veining is found variably throughout the area.  Gold mineralization has been locally detected over a northeast trending zone that is over eight kilometers long and up to one kilometer in width.  Assay results for approximately 100 rock chip samples have been received and show gold values from non-detectible up to 2.5 g/t gold.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">7. <U>Drilling</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No drilling has been conducted on the property.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">8. <U>Sampling and Analysis</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Rock samples were collected as composites of specific rock types or as select samples of quartz-flooded lithologies associated with structures or bedding.  Approximately 100 rock chip samples have been taken to date.   The rocks were shipped to ALS preparation laboratory in Lima and the pulp was analyzed in their laboratory in Vancouver, British Columbia.   No duplicates or replicate analyses have been taken.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">9. <U>Security of Samples</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The geologist in charge has supervised the collection and shipping of the samples by ground transportation to the sample preparation facility in Lima.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">10. <U>Mineral Resource and Mineral Reserve Estimations</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No resources or reserves have been delineated on the property.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">11.  <U>Mining Operations</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">No mining is conducted on the property.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">12. <U>Exploration and Development</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">We plan to continue rock chip sampling and will initiate a soil-sampling program in the near future.  If results warrant, a drilling program is planned in 2004.</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">Legal Proceedings</P>
</B><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">As of the date of this information statement, we are not a party to, nor are we aware of any pending legal action against our company that would have a material adverse effect on our financial condition.</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="CENTER">MANAGEMENT OF SOLITARIO RESOURCES CORPORATION </P>
<P ALIGN="CENTER"></P>
</B><P ALIGN="JUSTIFY">The executive officers of Crown and Solitario historically have been the same individuals, and we have reimbursed Crown for our share of management costs through the Management Agreement discussed previously.  Upon the completion of the sale of Crown to Kinross, it is expected that the Crown management team will resign their respective positions at Crown and will continue to serve our business on a full time basis.  At the present time we do not anticipate any significant changes to our executive management team.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The following table sets forth certain information as of the date of this information statement regarding our executive officers and directors.  They hold office until their successor has been elected and qualified, or until their death, resignation or removal from office.</P>
<P ALIGN="LEFT"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=553>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Name</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Age</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="53%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Title</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Christopher E. Herald</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">50</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="53%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">President, Chief Executive Officer, and Director</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Mark E. Jones III</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">64</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="53%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Chairman of the Board and Director</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Walter H. Hunt</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">52</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="53%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Vice President  Operations</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">James R. Maronick</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">48</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="53%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Chief Financial Officer</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">John Hainey</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">71</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="53%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Director</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Leonard Harris</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">76</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="53%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Director</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Daniel Leonard</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">67</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="53%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Director</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="LEFT">  </P>
<P ALIGN="LEFT">The following biographies describe the business experience of our executive officers and directors:</P>
<P ALIGN="LEFT"></P>
<U><P ALIGN="JUSTIFY">Mark E. Jones, III<B> </B></U>(64) has been Chairman of the Board since August 1993.  Mr. Jones has also been a Director of Crown since it commenced operations in February 1989.  He was Chairman of the Board of Crown from February 1989 to June 2002 when he was appointed Vice-Chairman.  He was President of Crown from September 1989 to November 1990.  Prior to his association with Crown, Mr. Jones was a founding partner of Jones, Loyd &amp; Webster, Inc., a Houston-based corporate finance and investment banking firm that specialized in oilfield equipment financing.  Mr. Jones also serves as Chairman of Jaguar Resources, a gold exploration company based in Houston, Texas.  Mr. Jones attended the University of Texas.</P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Christopher E. Herald<B> </B></U>(50) has been a Director since August 1992.  He has also served as Chief Executive Officer since June 1999 and President since August 1993.  Mr. Herald has also served as a Director of Crown since April 1989, as Chief Executive office of Crown since June of 1999, President of Crown since November 1990 and was Executive Vice President of Crown from January 1990 to November 1990.  Prior to joining Crown, Mr. Herald was a Senior Geologist with Echo Bay Mines and Anaconda Minerals.  Since 1998, Mr. Herald has also served as a Director to TNR Resources, a mineral exploration company located in Vancouver, British Columbia.  Mr. Herald received a M.S. in Geology from the Colorado School of Mines and a B.S. in Geology from the University of Notre Dame.  </P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Walter H. Hunt</U> (53) has been Vice President  Operations and President South American Operations since June of 1999.  He also served as Vice President  Peru Operations from July 1994 until June 1999.  Mr. Hunt has also been Vice President  Operations of Crown since 1994. Mr. Hunt has over 20 years of exploration, development and operational experience with Anaconda Minerals, Noranda and Echo Bay Mines where he served as Superintendent, Technical Services and Chief Geologist at Echo Bay's Kettle River Operations.  Mr. Hunt received his M.S. degree in Geology from the Colorado School of Mines and a B.S. degree from Furman University.</P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">James R. Maronick<B> </B></U>(48) has served as Chief Financial Officer and Chief Financial Officer of Crown since June 1999 and served as Vice President  Finance and Secretary/Treasurer and Vice President  Finance and Secretary/Treasurer of Crown since September 1997.  Prior to that, Mr. Maronick served as Vice President  Finance and Secretary/Treasurer of Consolidated Nevada Gold Fields Corporation from November 1994 to September 1997.  Mr. Maronick graduated with honors from the University of Notre Dame in 1977 with a BA in accounting and received his Masters degree with highest honors from the University of Denver in 1986.</P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">John Hainey<B> </B></U>(71) has been a director since 1999.  He is an independent financial consultant and spent the last ten years, before his retirement, as a mining analyst in the Canadian investment industry with Dundee Securities Corporation (formerly Eagle &amp; Partners), Yorkton Securities Inc., Loewen, Ondaatje, McCutcheon &amp; Company and Canaccord Capital Corporation.  Prior to 1988, Mr. Hainey spent over 30 years working in the mining industry, both in Canada and abroad, which covered engineering, operations, consulting and business development and included 17 years with BP Resources Canada Ltd.  Mr. Hainey is a member of the Association of Professional Engineers of Ontario and Saskatchewan and of the Canadian Institute of Mining and Metallurgy.  He is also a Chartered Engineer (U.K.) and a Fellow of the Institution of Mining and Metallurgy (U.K.).  He holds an A.C.S.M. (Hons.) in Mining Engineering from the Camborne School of Mines in England.</P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Leonard Harris</U> (76) has been a director since June 1998.&nbsp; Prior to his retirement from Newmont, Mr. Harris gained over 50 years experience in the mining industry including serving as General Manager of Minera Yanacocha, South American's largest gold mine, and Vice&nbsp;President and General Manager of Newmont Latin America. Mr. Harris has over 20 years experience in managing mining operations in Latin America that include base metal and gold deposits, underground and open pit mines, gold and base metal processing plants and smelting and refining operations.&nbsp; Mr. Harris currently serves on the boards of Correinte Resources, Inc., Canarc Resources Corp., Cardero Resources Corp., Endeavour Gold Corp.,&nbsp;Sulliden Exploration Inc., Alomos Gold, Inc. and Veneroso &amp; Associates.&nbsp; He is a 1949 graduate metallurgist of The Mount Morgan School of Mines (Australia).</P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Daniel Leonard</U> (67) has been a director since June 1999.  Prior to his retirement in 1999, Mr. Leonard served as Senior Vice President of INVESCO, an international financial services firm, for 24 years where he managed funds including INVESCO's Strategic Growth Portfolio.    Before joining INVESCO, Mr. Leonard was associated with Hanover Bank, Central Carolina Bank and Heritage Research Corporation.  Mr. Leonard has a B.A. degree from Washington &amp; Lee University and attended the New York University Graduate School of Business.</P>
<P ALIGN="LEFT"></P>
<B><P ALIGN="LEFT">Board of Directors</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Company's bylaws authorize a board of directors consisting of not less than three, nor more than nine, with the exact number of directors being a number that may be determined from time to time by resolution of our Board of Directors.  Our Directors are elected to hold office until the next annual shareholder meeting, until his successor has been elected and qualified, or until his death, resignation or removal.</P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Committees of the Board of Directors </P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Our Board of Directors has established an audit committee.  Our Board may establish other committees from time to time as deem necessary to facilitate management of our business.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Our audit committee currently consists of Messrs. Hainey, Harris and Leonard, with Mr. Leonard acting as Chairman.  The audit committee selects the independent auditors, reviews the plan, scope and results of the annual audit and reviews the controls or our business and financial management policies with our independent auditors.  All of the members of our audit committee are non-employee directors.  We adopted the Solitario Resources Board of Directors Audit Committee Charter (the "Charter") on October 29, 2003.  In accordance with the Charter, our Board of Directors has determined that all current members of the audit committee are independent.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We do not have a formal nominating committee.  We operate in a specific segment of mining, exploration and geology, in which our current directors have extensive experience.  The board of directors has determined that with the experience of the current directors and our limited resources, it is not in the Company's best interest to expend the resources or time and energy of the board of directors to form a formal nominating committee.  If a qualified candidate for director comes to the attention of the board of directors, the entire board will consider such candidate for nomination and such candidate will be nominated for election as a director if such candidate is supported by a majority of the board of directors.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Pursuant to Article II Section 11 of our Bylaws, candidates for election as directors at any meeting of shareholders may be made (a) by, or at the direction of, a majority of the board of directors or (b) by any shareholder entitled to vote at such a meeting. In order to qualify for consideration at a shareholder meeting, shareholder nominations must be in writing addressed to the Secretary of Solitario Resources Corporation not less than 60 days nor more than 90 days prior to the date of a scheduled shareholders' meeting; provided, however, that if less than 70 days notice or prior public disclosure of the scheduled date of such a meeting is given or made, notice of a shareholder nomination must be delivered or received not later than the close of business on the 10<SUP>th</SUP> day following the earlier of the day on which such notice of the date of the scheduled meeting was mailed or the day on which such public disclosure was made. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Such shareholder's notice shall set forth (a) as to each person whom the shareholder proposes to nominate for election or re-election as a director and as to the shareholder giving the notice (i) the name, age, business address and residence address of such person, (ii) the principal occupation or employment of such person, (iii) the class and number of shares of stock of the Company which are beneficially owned by such person of the date of such shareholder notice and (iv) any other information relating to such person that is required to be disclosed in solicitations of proxies with respect to nominees for election as directors, pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, and (b) as to the shareholder giving the notice (i) the name and address, as they appear on the Company's books, of such shareholder and any other shareholders known by such shareholder to be supporting such nominees and (ii) the class and number of shares of stock of the Company whi
ch are beneficially owned by such shareholder on the date of such shareholder notice and by any other shareholders known by such shareholder to be supporting such nominees on the date of such shareholder notice. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The board of directors may reject any shareholder nomination not timely made in accordance with the requirements of Article II Section 11 of Solitario's Bylaws. Furthermore, if the board of directors determines that the information provided in a shareholder's notice does not satisfy the informational requirements of Article II Section 11 of the Bylaws in any material respect, the Secretary will promptly notify such shareholder of the deficiency in the notice. The shareholder will then have an opportunity to cure the deficiency by providing additional information to the Secretary within such period of time, not to exceed 5 days from the date such deficiency notice is given to the shareholder, as the board of directors shall reasonably determine. If the deficiency is not cured within such time period, or if the board of directors reasonably determines that the additional information provided by the shareholder, together with information previously provided, does not satisfy the requirements 
of Article II Section 11 of the Company's Bylaws in any material respect, then the board of directors may reject such shareholder's nomination. The Secretary of the Company shall notify a shareholder in writing whether his or her nomination has been made in accordance with the time and information requirements of the Company's Bylaws. Notwithstanding the procedure set forth above, if the board of directors does not make a determination as to the validity of any shareholder nominations, the presiding officer of the meeting of the shareholders shall determine and declare at the meeting whether a nomination was made in accordance with the terms of the Company's Bylaws and shall accept or reject the nomination accordingly.  </P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Compensation </P>
</B><P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Compensation of Directors </P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Other than options granted pursuant to the Solitario Resources Corporation's 1994 Stock Option Plan (the "Plan"), our Directors have not been compensated in their capacities as Directors for us during the most recently completed fiscal year.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The following table sets forth stock options granted during the most recently completed fiscal year to each of the Directors.  Options granted to Directors are not subject to vesting provisions. </P>
<P ALIGN="JUSTIFY"></P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=576>
<TR><TD WIDTH="28%" VALIGN="BOTTOM" HEIGHT=77>
<FONT SIZE=2><P ALIGN="LEFT">Name</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=77>
<FONT SIZE=2><P ALIGN="CENTER">Securities<BR>
under<BR>
options<BR>
granted<BR>
(#)</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" HEIGHT=77>
<FONT SIZE=2><P ALIGN="CENTER">Exercise<BR>
or base<BR>
price<BR>
($/Security)</FONT></TD>
<TD WIDTH="22%" VALIGN="BOTTOM" HEIGHT=77>
<FONT SIZE=2><P ALIGN="CENTER">Market value of<BR>
securities underlying<BR>
the options on the<BR>
date of grant<BR>
($/Security)</FONT></TD>
<TD WIDTH="22%" VALIGN="BOTTOM" HEIGHT=77>
<FONT SIZE=2><P ALIGN="CENTER">Expiration Date</FONT></TD>
</TR>
<TR><TD WIDTH="28%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">John Hainey</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">80,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Cdn$0.73</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Cdn$0.73</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">07-Mar-2007</FONT></TD>
</TR>
<TR><TD WIDTH="28%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Leonard Harris</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">80,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Cdn$0.73</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Cdn$0.73</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">07-Mar-2007</FONT></TD>
</TR>
<TR><TD WIDTH="28%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Christopher E. Herald </FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">185,000&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Cdn$0.73</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Cdn$0.73</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">07-Mar-2007</FONT></TD>
</TR>
<TR><TD WIDTH="28%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Mark E. Jones, III</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">185,000&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Cdn$0.73</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Cdn$0.73</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">07-Mar-2007</FONT></TD>
</TR>
<TR><TD WIDTH="28%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Daniel B. Leonard</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">80,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Cdn$0.73</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Cdn$0.73</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">07-Mar-2007</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Executive Compensation </P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Our current policy is to pay no cash compensation to our executive officers for their services to us.  Our executive officers have been paid by Crown, whose subsidiary, CRCC is reimbursed pursuant to the Management Agreement between CRCC and us.  Subsequent to the spin-off, and assuming the completion of the acquisition of Crown by Kinross, we anticipate that we will terminate the Management Agreement and offer our executive officers compensation packages similar to those currently in effect with Crown.  The following table summarizes the compensation paid by Crown to our executive officers for the year ended December 31, 2002.</P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="LEFT"><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=562>
<TR><TD WIDTH="41%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">Name and Principal Position</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">Year</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">Salary</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">Bonus</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">Other Annual<BR>
Compensation</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">Christopher E. Herald, CEO</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">2002</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">$145,000</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">$14,000</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">$8,000</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">Mark Jones, Vice Chairman</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">2002</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">$  98,000</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">$  5,000</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">$7,000</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">James R. Maronick, CFO</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">2002</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">$100,000</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">$  5,000</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">$7,000</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">Walter W. Hunt, VP Operations</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">2002</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">$  88,000 </FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">$  4,000</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">$6,000</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
</TABLE>
</P>

<U><FONT SIZE=2><P ALIGN="JUSTIFY">Summary Compensation Table</U> </P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=696>
<TR><TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=4>
<U><FONT SIZE=2><P ALIGN="CENTER">Annual Compensation</U></FONT></TD>
<TD WIDTH="44%" VALIGN="TOP" COLSPAN=4>
<U><FONT SIZE=2><P ALIGN="CENTER">Long-Term Compensation</U></FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Name and Principal Position</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">Year</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">Salary</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">Bonus</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">Other Annual<BR>
Compensation</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">Awards<BR>
Securities<BR>
Under Options/<BR>
SAR''s Granted<BR>
(#)</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">Payouts<BR>
Restricted<BR>
Shares or<BR>
Restricted<BR>
Share Units<BR>
($)</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">All LTIP<BR>
Payouts<BR>
($)</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">All</P>
<P ALIGN="CENTER">Other<BR>
Compensation</FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Christopher E. Herald, CEO</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">2002</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">185,000</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">2001</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">160,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">2000</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">213,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">NONE</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<U><P ALIGN="LEFT">Option Grants during the Most Recently Completed Fiscal Year</U>  </P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">The following table sets forth stock options granted during the most recently completed fiscal year to our Chief Executive Officer.</P>
<P ALIGN="JUSTIFY"></P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=648>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" ROWSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">Name</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" ROWSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Securities<BR>
under options<BR>
granted<BR>
(#)</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" ROWSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">% of total<BR>
options<BR>
granted to<BR>
employees<BR>
in fiscal<BR>
year</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" ROWSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Exercise or<BR>
base price<BR>
($/security)</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" ROWSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">Expiration date</FONT></TD>
<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Potential Realizable Value at Assumed Annual Rates of Stock Price Appreciation For Option Term </FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">5%</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">10%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Christopher E. Herald, CEO</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">185,000</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">16.2%</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Cdn$0.73</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">March 7, 2007</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="LEFT">Cdn$37,000</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Cdn$82,000</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">Aggregated Option Exercises during the Most Recently Completed Fiscal and Fiscal Year-End Option Values</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The following table sets forth details of all exercises of stock options during the most recently completed fiscal year by our Chief Executive Officer and the financial year-end value of unexercised options on an aggregated basis.</P>
<P ALIGN="JUSTIFY"></P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=646>
<TR><TD WIDTH="27%" VALIGN="BOTTOM" HEIGHT=83>
<FONT SIZE=2><P ALIGN="LEFT">Name</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=83>
<FONT SIZE=2><P ALIGN="LEFT">Securities<BR>
Acquired<BR>
on<BR>
exercise<BR>
(#)</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=83>
<FONT SIZE=2><P ALIGN="LEFT"><BR>
Value<BR>
realized<BR>
($)</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" HEIGHT=83>
<FONT SIZE=2><P ALIGN="LEFT">Unexercised<BR>
options at<BR>
fiscal year-end<BR>
(#)<BR>
Exercisable /<BR>
Unexercisable</FONT></TD>
<TD WIDTH="23%" VALIGN="BOTTOM" HEIGHT=83>
<FONT SIZE=2><P ALIGN="LEFT">Value of unexercised<BR>
in-the-money options<BR>
at fiscal year-end<BR>
(Cdn$)<BR>
Exercisable /<BR>
Unexercisable</FONT></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="LEFT">Christopher E. Herald</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="LEFT">N/A</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="LEFT">N/A</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="LEFT">558,000 / 0</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="LEFT">0 / 0</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Management Contracts</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Currently, all members of our executive management have contracts with Crown.   We have no contracts with any members of our executive management</P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Indemnification of Directors</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Our Articles of Incorporation authorize our Board of Directors to the fullest extent permitted by Colorado law as now or hereafter in effect, to indemnify any Director of Solitario.  The Board of Directors shall be entitled to determine the terms of such indemnification, including advance of expenses, and to give effect thereto through the adoption of Bylaws, approval of agreements, or by any other manner approved by the Board of Directors.  Any amendment to or repeal of the authorization of indemnification contained in our Articles of Incorporation shall not adversely affect any right of a Director of Solitario thereunder with respect to any right to indemnification that arises prior to such amendment</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="CENTER">PRINCIPAL STOCKHOLDERS </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">To our knowledge, no person beneficially owns, directly or indirectly, or exercises control or direction over, voting securities carrying more than five percent of our issued and outstanding common stock with the exception of CRCC, which directly owns 9,633,585 shares, representing 38.7 percent of our issued and outstanding common stock.  Effective with the spin-off, other than the Retained Shares, these shares will be distributed proportionally to Crown's shareholders.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The following table sets forth, as of December 9, 2003, the beneficial ownership of our outstanding common stock by each of shareholders owning more than five percent, our Directors, each named executive officer and all of our executive officers as a group.  Unless otherwise indicated, the persons listed in the table below have sole voting and investment powers with respect to the shares indicated.</P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=665>
<TR><TD WIDTH="37%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Prior to Spin-off</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="29%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Subsequent to Spin-off</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="JUSTIFY">Name of Beneficial Owner</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">Amount and Nature of beneficial Ownership</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">Percent of Class</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">Amount and Nature of beneficial Ownership(15)</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">Percent of Class </P>
<P ALIGN="CENTER">(15)</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">John Hainey, Director</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">220,000(4)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">*</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">220,000(4)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">*</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Leonard Harris, Director</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">256,000(3)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">1.0%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">256,000(3)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">1.1%</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Christopher E. Herald, CEO and Director</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">558,000(1)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2.2%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">744,859(8)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">3.1%</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Daniel Leonard, Director</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">210,000(4)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">*</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">210,000(4)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">*</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Mark E. Jones, III, Director</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">548,000(2)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2.2%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">584,855(10)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2.4%</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">James R. Maronick, CFO</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">414,000(5)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">1.6%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">526,076(9)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2.2%</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Walter H. Hunt, VP Operations</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">428,000(6)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">1.7%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">533,300(11)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2.2%</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="BOTTOM"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">All directors and executive officers as a group</DIR>
</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="BOTTOM"><DIR>

<FONT SIZE=2><P ALIGN="CENTER">2,634,000(7)</DIR>
</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM"><DIR>

<FONT SIZE=2><P ALIGN="CENTER">9.6%</DIR>
</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="BOTTOM"><DIR>

<FONT SIZE=2><P ALIGN="CENTER">3,075,090(12)</DIR>
</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM"><DIR>

<FONT SIZE=2><P ALIGN="CENTER">11.7%</DIR>
</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Crown Resources Corporation</P>
<P ALIGN="LEFT">4251 Kipling St., Suite 390</P>
<P ALIGN="LEFT">Wheat Ridge, CO 80033</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">9,633,585</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">38.7%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">--</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">*</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Sprott Securities, Inc</P>
<P ALIGN="LEFT">Suite 3450 South Tower</P>
<P ALIGN="LEFT">Royal Bank Plaza</P>
<P ALIGN="LEFT">Toronto, ON M5J 2J2</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">3,871,000</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">15.5%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">3,871,000</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">16.4%</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Zoloto Investors, LP</P>
<P ALIGN="LEFT">14701 St. Mary's Lane, suite 800</P>
<P ALIGN="LEFT">Houston, TX 77079</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">-</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">*</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2,214,728(13)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">9.4%</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Steven A. Webster</P>
<P ALIGN="LEFT">14701 St. Mary's Lane, Suite 800</P>
<P ALIGN="LEFT">Houston, TX 77079</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">-</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">*</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2,294.049(14)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">9.7%</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P><DIR>
<DIR>

<P ALIGN="JUSTIFY">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicates holdings of less than 1%.</P></DIR>
</DIR>

<P ALIGN="JUSTIFY">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes 558,000 shares that he has the right to acquire under options granted pursuant to the Plan.</P>
<P ALIGN="JUSTIFY">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes 548,000 shares that he has the right to acquire under options granted pursuant to the Plan.</P>
<P ALIGN="JUSTIFY">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes 246,000 shares that he has the right to acquire under options granted pursuant to the Plan.</P>
<P ALIGN="JUSTIFY">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes 210,000 shares that he has the right to acquire under options granted pursuant to the Plan.</P>
<P ALIGN="JUSTIFY">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes 414,000 shares that he has the right to acquire under options granted pursuant to the Plan.</P>
<P ALIGN="JUSTIFY">(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes 428,000 shares that he has the right to acquire under options granted pursuant to the Plan.</P>
<P ALIGN="JUSTIFY">(7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes the right to acquire 2,614,000 shares under options granted pursuant to the Plan.</P>
<P ALIGN="JUSTIFY">(8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes (1) above and 179,010 of our shares from 850,000 Crown shares that he has the right to acquire under options granted pursuant to Crown's 2002 option plan and 7,849 of our shares from 37,268 Crown shares he owns.</P>
<P ALIGN="JUSTIFY">(9)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes (5) above and 111,618 of our shares from 530,000 Crown shares that he has the right to acquire under options granted pursuant to Crown's 2002 option Plan and 458 of our shares from 2,177 shares of Crown he owns. </P>
<P ALIGN="JUSTIFY">(10)&nbsp;&nbsp;&nbsp;&nbsp;Includes (2) above and 36,855 of our shares from 175,000 Crown shares that he has the right to acquire under options granted pursuant to Crown's 2002 option Plan.</P>
<P ALIGN="JUSTIFY">(11)&nbsp;&nbsp;&nbsp;&nbsp;Includes (6) above and 105,300 of our shares from 500,000 Crown shares that he has the right to acquire under options granted pursuant to Crown's 2002 option Plan.</P>
<P ALIGN="JUSTIFY">(12)&nbsp;&nbsp;&nbsp;&nbsp;Includes (7) above and 432,783 of our shares from 2,055,000 Crown shares granted pursuant to Crown's 2002 option plan and 8,307 of our shares from 39,445 Crown shares owned. </P>
<P ALIGN="JUSTIFY">(13)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes 2,214,728 of our shares from 768,375 Crown shares owned and from assumed conversion of Crown debt into 5,714,286 Crown shares and the assumed exercise of 5,714,286 Crown warrants on a cashless basis at the market price of Crown common stock on December 9, 2003, of $2.55 per share for 4,033,614 Crown shares.</P>
<P ALIGN="JUSTIFY">(14)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes 47,385 of our shares from 225,000 Crown shares that he has the right to acquire under options granted pursuant to Crown's 2002 option plan and 31,937 of our shares from 151,647 shares of Crown he owns and 2,214,728 shares beneficially owned by Zoloto, of which Mr. Webster is the sole member of the general partner.</P>
<P ALIGN="JUSTIFY">(15)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assumes the conversion of all Crown convertible debt, the exercise of all Crown warrants on a cashless basis at the market price of Crown common stock on December 9, 2003, of $2.55 per share, and the retirement of our shares received by us in the spin-off.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="LEFT">Changes in Control</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Crown (through its wholly-owned subsidiary, CRCC) will no longer own 38.7% of our outstanding common stock after completion of the spin-off.   If the Kinross merger is completed as planned, Steven Webster, primarily through his deemed ownership of our shares held by Zoloto, will own 9.9% of our outstanding shares.  We do not anticipate any other holders, including Sprott Securities Inc., will exercise any significant control over us after the spin-off and completion of the Kinross merger.</P>
<B><P ALIGN="LEFT"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">DESCRIPTION OF CAPITAL STOCK </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Our authorized capital consists of 50,000,000 shares of common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share. As of December 9, 2003 there were 24,907,134 outstanding shares of common stock and no shares of preferred stock issued and outstanding. Below is a summary description of the material provisions of our capital stock:</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="LEFT">COMMON STOCK</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We are authorized to issue 50,000,000 shares of common stock. All the issued and outstanding shares of common stock are validly issued, fully paid and non-assessable. Each outstanding share of common stock has one vote on all matters requiring a vote of the stockholders. There is no right to cumulative voting; thus, the holders of fifty percent or more of the shares outstanding can, if they choose to do so, elect all of the directors. In the event of a voluntary or involuntary liquidation, all shareholders are entitled to a pro rata distribution after payment of liabilities and after provision has been made for each class of stock, if any, having preference over the common stock. The holders of the common stock have no preemptive rights with respect to our offerings of shares of our common stock. Holders of common stock are entitled to dividends if, as and when declared by the Board out of the funds legally available therefore. It is our present intention to retain earnings, if any, for us
e in our business. Dividends are, therefore, unlikely in the foreseeable future. </P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="LEFT">PREFERRED STOCK</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Pursuant to our Articles of Incorporation, our Board is authorized to issue, without any action on the part of our shareholders, up to 10,000,000 shares of preferred stock, par value $0.01 per share, of which no shares have been designated or issued. The Board has authority to divide the blank check preferred stock into one or more series and has broad authority to fix and determine the relative rights and preferences, including the voting rights of the shares of each series. The preferred stock could be used as a method of discouraging, delaying or preventing a change in control of the Company or be used to resist takeover offers opposed by the management. For instance, the Board could create impediments to or frustrate persons seeking to take us over or otherwise gain control of us by causing shares of preferred stock with voting or conversion rights to be issued to a holder or holders who might side with the Board in opposing a takeover bid that the Board determines not to be in our bes
t interest. In addition, our ability to issue shares of preferred stock with voting or conversion rights might be considered a threat to dilute the stock ownership that might be acquired by a person or entity that might consider making a takeover bid. We have no plans at this time to issue any shares of preferred stock, and have no knowledge of any person or entity considering a takeover bid. </P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="LEFT">TRANSFER AGENT</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Transfer Agent and Registrar for all the outstanding stock of the Company is Computershare Trust Company of Canada, 100 University Avenue, 9<SUP>th</SUP> Floor, Toronto, Ontario, M5J 2Y1, telephone (800) 564-6253.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="LEFT">EXCHANGE</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Currently our shares are listed on the Toronto Stock Exchange under the symbol SLR. There is no current trading market for our stock in the United States.  After the spin-off, we anticipate that our stock will also be traded in the United States on the OTC Bulletin Board.</P>
<B><P ALIGN="CENTER">INDEX TO SOLITARIO RESOURCE CORPORATION'S CONSOLIDATED FINANCIAL STATEMENTS </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=619>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Page</FONT></TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">Consolidated Financial Statements</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Independent Auditor's Report</DIR>
</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">F-2</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Consolidated Balance Sheets as of December 31, 2002 and 2001</DIR>
</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">F-3</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Consolidated Statements of Operations for the years ended December 31, 2002, 2001 and 2000</DIR>
</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">F-4</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Consolidated Statements of Stockholders' Equity for the years ended December 31, 2002, 2001 and 2000</DIR>
</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="CENTER">F-5</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Consolidated Statements of Cash Flows for the years ended December 31, 2002, 2001 and 2000</DIR>
</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">F-6</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Notes to Consolidated Financial Statements</DIR>
</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">F-7</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" COLSPAN=2><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Unaudited Consolidated Financial Statements</DIR>
</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Unaudited Consolidated Balance Sheets as of September 30, 2003 and 2002</DIR>
</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">F-18</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Unaudited Consolidated Statements of Operations for the nine months ended September 30, 2003, and 2002</DIR>
</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">F-19</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2003 and 2002</DIR>
</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">F-20</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P ALIGN="LEFT">Notes to Unaudited Consolidated Financial Statements</DIR>
</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">F-21</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="87%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="LEFT"></P>
<P ALIGN="CENTER">&nbsp;</P>
<U><P ALIGN="CENTER">INDEPENDENT AUDITORS' REPORT</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">To the Board of Directors and Stockholders</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;of Solitario Resources Corporation</P>
<P ALIGN="JUSTIFY">Wheat Ridge, Colorado</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We have audited the consolidated balance sheets of Solitario Resources Corporation and subsidiaries (Solitario) as of December 31, 2002 and 2001, and the related consolidated statements of operations, stockholders'' equity, and cash flows for each of the three years in the period ended December 31, 2002.  These financial statements are the responsibility of Solitario''s management.  Our responsibility is to express an opinion on these financial statements based on our audits.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">We conducted our audits in accordance with auditing standards generally accepted in the United States of America.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Solitario as of December 31, 2002 and 2001, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2002 in conformity with accounting principles generally accepted in the United States of America.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">As discussed in Note 2 to the consolidated financial statements, the consolidated balance sheet at December 31, 2002 includes land and leasehold costs of $3,743,000.  Note 1 to the consolidated financial statements emphasizes that the recovery of these costs is ultimately dependent upon the development of economically recoverable ore reserves, the ability of Solitario to obtain the necessary permits and financing to successfully place the properties into production, and upon future profitable operations.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Deloitte &amp; Touche LLP</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Denver, Colorado</P>
<P ALIGN="JUSTIFY">March 24, 2003</P>
<U><P ALIGN="JUSTIFY"></P>
</U><P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER">CONSOLIDATED BALANCE SHEETS</P>
<P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=541>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">(in thousands of U.S. Dollars,</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">December 31,</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">December 31,</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;except per share amounts)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2001&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Assets</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Current assets:</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Cash and cash equivalents</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$1,405&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$2,723&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Note receivable</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">111&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">108&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Investments in marketable equity securities, at fair value</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">409&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">268&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Prepaid expenses and other</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;27</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,952&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">3,168&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Mineral properties, net</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">3,743&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">3,693&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Note receivable from Crown, net of discount</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">915&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">893&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Other assets</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;293</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;349</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>6,903</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>8,103</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="82%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">Liabilities and Stockholders' Equity</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Current liabilities:</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Accounts payable</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$44&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Due to Crown</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">73</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;62</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">99&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">106&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Commitments and contingencies (Notes 2, 4, and 7)</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Stockholders' equity:</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Preferred stock, $0.01 par value, authorized 10,000,000</P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;(none issued and outstanding December 31, 2002 and 2001)</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Common stock, $0.01 par value, authorized, 50,000,000</P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;(23,407,134 issued and outstanding at December 31, 2002 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and 2001)</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">234&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">234&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Additional paid-in capital</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">21,189&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">21,189&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Accumulated deficit</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(14,837)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(13,167)</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Accumulated other comprehensive income (loss)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;218</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(259</U>)</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;6,804</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;7,997</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Total liabilities and stockholders' equity</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;6,903</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;8,103</U>&nbsp;</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">See Notes to Consolidated Financial Statements</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF OPERATIONS</P>
<P ALIGN="CENTER"></P>
<P ALIGN="LEFT">&nbsp;</P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=577>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(in thousands of U.S. dollars</FONT></TD>
<TD WIDTH="51%" VALIGN="TOP" COLSPAN=3>
<U><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Years ended December 31,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;except per share amounts)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;2002&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;2001&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;2000&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Revenues:</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Mineral property option proceeds</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;100&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Gain on sale of assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">5,811&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;137</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;236</U>&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;360</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">137&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">236&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">6,271&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Costs and expenses:</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Exploration expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">907&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,464&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,182&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Depreciation, depletion and amortization</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">40&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">49&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">18&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;General and administrative</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">372&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">511&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">372&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Management fees</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">449&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">590&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">414&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Asset write-downs</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,274&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">  Loss on sale of assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">39</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Other (net)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5</U>&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;1,807</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;3,893</U>&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">1,986</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Net loss</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>(1,670</U>)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>(3,657</U>)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>4,285</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Earnings (loss) per common share:</P>
<P ALIGN="LEFT">&nbsp;&nbsp;Basic</P>
<P ALIGN="LEFT">&nbsp;&nbsp;Diluted</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$<U>(0.07</U>)</P>
<P ALIGN="RIGHT">$<U>(0.07</U>)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$<U>(0.16</U>)</P>
<P ALIGN="RIGHT">$<U>(0.16</U>)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$<U>0.24</U>&nbsp;</P>
<P ALIGN="RIGHT">$<U>0.23</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Weighted average shares outstanding:</P>
<P ALIGN="LEFT">&nbsp;&nbsp;Basic</P>
<P ALIGN="LEFT">&nbsp;&nbsp;Diluted</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<U><P ALIGN="RIGHT">23,407</U>&nbsp;</P>
<U><P ALIGN="RIGHT">23,407</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<U><P ALIGN="RIGHT">23,387</U>&nbsp;</P>
<U><P ALIGN="RIGHT">23,387</U>&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<U><P ALIGN="RIGHT">18,163</U>&nbsp;</P>
<U><P ALIGN="RIGHT">18,350</U>&nbsp;</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="LEFT">See Notes to Consolidated Financial Statements</P>
<P ALIGN="RIGHT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF STOCKHOLDERS'' EQUITY</P>
<P ALIGN="JUSTIFY"></P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=678>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(in thousands of</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">Accumulated&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">U.S. dollars,</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">Additional&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">Other&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">except per share</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Common Stock</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">Paid-in&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">Accumulated</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">Comprehensive</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Amounts)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Amount</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;Capital&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Deficit&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;Income (loss)&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;Total&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Balance at January 1, 2000</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">16,854,521</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$169</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$16,507</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$(13,795)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$(131)</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$2,750&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Comprehensive income (loss):</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Shares issued:</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of Altoro</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">6,228,894</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">62</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">4,464</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">4,526&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Exercise of warrants</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">261,232</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">3</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">176</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">179&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Comprehensive income (loss):</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Net income</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">4,285&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">4,285&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gain on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;marketable equity securities</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;69</U>&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Comprehensive income</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;4,354&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Balance at December 31, 2000</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,344,647</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">234</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">21,147</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(9,510)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(62)</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">11,809&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Shares issued:</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;For mineral property</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">62,487</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">42</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">42&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Comprehensive loss:</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Net loss</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(3,657)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(3,657)</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized loss on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;marketable equity securities</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">(197</U>)</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;(197</U>)</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Comprehensive income</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">(3,854)</U></FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Balance at December 31, 2001</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">23,407,134</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">234</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">21,189</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(13,167)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(259)</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">7,997&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Net loss</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(1,670)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(1,670)</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gain on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;marketable equity securities</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;477</U>&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;477</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Comprehensive income</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">(1,193)</U></FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Balance at December 31, 2002</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">23,407,134</U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>234</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>21,189</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>(14,837</U>)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;218</U>&nbsp;</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>6,804&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">See Notes to Consolidated Financial Statements.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF CASH FLOWS</P>
<P ALIGN="CENTER"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">&nbsp;</P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=613>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(in thousands of U.S. dollars)</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP" COLSPAN=3>
<U><FONT SIZE=2><P ALIGN="CENTER">Years Ended December 31,</U></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">2002</U></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">2001</U></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">2000</U></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Operating activities:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Net income (loss)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$(1,670)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$(3,657)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$4,285&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Adjustments:</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation, depletion and amortization</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">40&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">49&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">18&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset write-downs</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,274&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on asset sales</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">39&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(5,811)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income received in stock</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(74)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">99&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities, excluding &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;effects of acquisition:</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">18&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(38)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(77)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(18)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(26)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(73)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to CRCC</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11</U>&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(19</U>)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">(1,654</U>)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">(2,415</U>)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">(1,517</U>)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Investing activities:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Payments for acquisition, net of cash acquired</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(374)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Investment in Crown promissory notes and warrants</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(1,000)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Additions to mineral properties and other</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(50)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(52)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(55)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Proceeds from asset and mineral property sales</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">407&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">5,715&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Proceeds from note receivable</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">109&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">106&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Purchase of securities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(130)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(200)&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Other assets</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;(63</U>)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;336</U>&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">(1,196</U>)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">5,286</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Financing activities:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;</B>Issuance of common stock</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;179</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;179</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Net increase (decrease) in cash and cash equivalents</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(1,318)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(3,611)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">3,948&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Cash and cash equivalents, beginning of year</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;2,723</U>&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;6,334</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">2,386</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Cash and cash equivalents, end of year</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;1,405</U>&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>2,723</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>6,334</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Supplemental disclosure of cash flow information:</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;&nbsp;Issuance of stock for property acquisitions</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">42&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">4,705&nbsp;</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">See Notes to Consolidated Financial Statements</P>
<P ALIGN="CENTER"></P><DIR>
<DIR>

<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</P>
<P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY">1. <U>Business and Summary of Significant Accounting Policies</U>:</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>

<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Business and company formation</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario Resources Corporation ("Solitario") engages principally in the acquisition, exploration, and development of mineral properties.  Solitario's mineral properties are located in Brazil and Peru.  Solitario was incorporated in the state of Colorado on November 15, 1984 as a wholly owned subsidiary of Crown Resource Corp. of Colorado ("CRCC").  In October 2000 Solitario completed a Plan of Arrangement ("the Plan") whereby Solitario issued 6,228,894 shares of its common stock to the shareholders of Altoro in exchange for 100% of the outstanding shares of Altoro.  Primarily as a result of the issuance of shares in connection with the Plan, CRCC's ownership of Solitario's shares was reduced from 57.3% (just prior to the transaction) to 41.2% as of December 31, 2002. See Note 9.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Financial reporting</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements include the accounts of Solitario and its wholly owned subsidiaries.  All material intercompany accounts and transactions have been eliminated in consolidation.  The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, and are expressed in U.S. dollars.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In performing its activities, Solitario has incurred certain costs for land and leasehold interests.  The recovery of these costs is ultimately dependent upon the development of economically recoverable ore reserves, the ability of Solitario to obtain the necessary permits and financing to successfully place the properties into production, and upon future profitable operations, none of which is assured.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Use of estimates</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates and the differences could be material.</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;<U>Cash equivalents </P>
</U><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents include investment in highly-liquid debt securities with original maturities of three months or less when purchased. </P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;<U>Note receivable</P>
</U><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note receivable consists of $200,000, plus interest, held by Newmont Mining Company and due Solitario in two annual payments, pending the release of certain contingent liabilities, see Note 2.  The long-term portion of the note receivable, of $100,000, plus interest, is included in other assets.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Mineral properties</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land and leasehold costs are capitalized in cost centers and will be depleted on the basis of economic reserves using the units-of-production method.  If there are insufficient economic reserves to use as a basis for depleting such costs, a mineral property write-off will be made in the period in which the determination is made.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario records the proceeds from the sale of property interests to joint ventures as a reduction of the related property's capitalized cost.  Proceeds that exceed the capitalized cost of property are recognized as revenue over the period that the joint venture remains active as a result of the payment.  When such proceeds are associated with properties subject to a joint venture, they are recorded as revenue in accordance with the terms of the joint venture and the transfer of the property interest to the joint venture partner during the term of the joint venture. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario expenses all exploration costs incurred on properties other than acquisition costs prior to the establishment of proven and probable reserves.  Solitario regularly performs evaluations of its assets to assess the recoverability of its investments in these assets.  All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable utilizing established guidelines based upon discounted future net cash flows from the asset or upon the determination that certain exploration properties do not have sufficient potential for economic mineralization.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-downs relating to mineral properties were to $1,274,000 in 2001. There were no mineral property write-downs in 2002 or 2000.  The write-down for 2001 related to the Rincon del Tigre Property located in Bolivia and the Tocantinzinho property located in Brazil.   At December 31, 2002 and 2001, Solitario's capitalized costs of $3,743,000 and $3,693,000, respectfully, related to the land, leasehold and acquisition costs, as Solitario has not yet identified any proven and probable reserves on its mineral properties.  The recoverability of these costs is dependent on, among other things, the successful identification of proven and probable reserves, and permitting and development of the properties.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Marketable equity securities</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario''s equity securities are classified as available-for-sale and are carried at fair value, which is based upon market quotes of the underlying securities. The cost of marketable equity securities sold is determined by the specific identification method.  Changes in market value are recorded in other comprehensive income (loss) component of Stockholders' Equity, unless a decline in market value is considered other than temporary, which is recognized as a loss in the Statement of Operations. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Foreign exchange</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The United States dollar is the functional currency for all of Solitario's foreign subsidiaries.  Although Solitario's exploration activities have been conducted primarily in Brazil, Bolivia and Peru, substantially all of the land, leasehold, and exploration agreements of Solitario are denominated in United States dollars. Solitario expects that a significant portion of its required and discretionary expenditures in the foreseeable future will also be denominated in United States dollars.  Foreign currency gains and losses are included in the results of operations in the period in which they occur.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Income taxes</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes.  Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled.  Deferred taxes are also recognized for operating losses and tax credits that are available to offset future taxable income and income taxes, respectively.  A valuation allowance is provided, if it is more likely than not that some portion or all of the deferred tax assets will not be realized.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Earnings per share</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The calculation of basic earnings per share, "Earnings Per Share", is based on the weighted average number of common shares outstanding during the years ended December 31, 2002, 2001 and 2000.  The calculation of diluted earnings per share includes the effect of common stock equivalents, which include employee stock options and warrants, unless inclusion would be anti-dilutive.  The potentially dilutive securities, stock options, were 3,372,000, 2,282,000 and 1,615,000 at December 31, 2002, 2001 and 2000, respectively.   Diluted earnings per share for the year ended December 31, 2000 included the effect of stock options that are dilutive.  The proceeds from the issuance of shares are assumed to be used to purchase common stock in accordance with the treasury stock method.  Weighted average number of shares outstanding increased from 18,162,549 to 18,350,069 as a result of the assumption of the exercise of options, which are diluti
ve common stock equivalents.  There was no change to the income available to common shareholders as a result of the assumption of conversion of dilutive common stock equivalents.  The effects of these securities are not included in the computation of diluted earnings per share in 2002 or 2001 as their inclusion would be anti-dilutive.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Employee stock compensation plans</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario follows Accounting Principles Board Opinion ("APB") No. 25, "Accounting for Stock Issued to Employees".  Under Solitario's stock option plans, the exercise price of stock options issued to employees equals the market price of the stock on the measurement date.  As a result of repricing of its options in 1999, Solitario accounts for all grants which have been repriced as variable awards and records increases and decreases in compensation expense during the period based upon changes in the market price of Solitario's stock as required by APB 25.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro forma information has been computed as if Solitario had accounted for its stock options under the fair value method of SFAS No. 123.  The fair values of these options were estimated at the date of grant using a Black-Scholes option pricing model with the following assumptions for 2002, 2001 and 2000, respectively: risk-free interest rate of 4.34%, 4.74% and 6.10%; dividend yield of 0 percent; volatility factor of the expected market price of Solitario's common stock of 60%, 65% and 65%; and a weighted average expected life of the options of 4.3 years, 4.4 years and 4.0 years.  The weighted average fair value of the options granted is estimated at $0.25, $0.34 and $0.48 per share in 2002, 2001 and 2000, respectively.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Had Solitario accounted for its stock options under the fair value method of SFAS No. 123, the following results would have been reported:</P>
<P ALIGN="JUSTIFY"></P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=559>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(in thousands, except per&nbsp;&nbsp;&nbsp;share amounts)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">2002</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">2001</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">2000</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Net income (loss), as reported</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$(1,670)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$(3,659)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$4,285</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Deduct total stock-based compensation expense determined</P>
<P ALIGN="LEFT">&nbsp;&nbsp;under fair value based method for all rewards  </FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;232</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;325</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Pro forma net income (loss)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(1,902)</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(3,984)</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$4,264</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Earnings  per share:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Basic as reported</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;(0.07)</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;(0.16)</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;0.24</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Basic pro forma</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;(0.08)</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;(0.17)</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;0.24</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Diluted as reported</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;(0.07)</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;(0.16)</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;0.23</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Diluted pro forma</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;(0.08)</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;(0.17)</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;0.23</U></FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Segment reporting</P>
<P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario operates in one segment, minerals exploration.  All of Solitario's operations are located in South America as further described in note 2 to these financial statements.  Solitario's United States assets consist primarily of cash and cash equivalents at December 31, 2002 of $1,385,000.  Solitario conducts certain administrative functions in the United States.  Solitario holds certain Canadian and South American assets through its Canadian wholly owned subsidiary, Altoro.</P>
<U><P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>New accounting pronouncements</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December 2002, the Financial Accounting Standards Board (the "FASB") issued Statement of Financial Accounting Standards No. 148, ""Accounting for Stock-Based Compensation - Transition and Disclosure - an amendment of FASB Statement No. 123"" ("SFAS&nbsp;No. 148").&nbsp; SFAS No. 148 amends Statement of Financial Accounting Standards No. 123, ""Accounting for Stock-Based Compensation"" (SFAS No. 123) to provide alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation.&nbsp; In addition, SFAS No. 148 amends the disclosure requirements of SFAS No. 123 to require prominent disclosures in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results.&nbsp; SFAS No. 148 is effective for financial statements for fiscal years ending after December 15
, 2002. Solitario will continue to account for stock based compensation using the methods detailed in the stock-based compensation accounting policy.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April 2002, the FASB issued SFAS No. 145, "Recission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections".  SFAS No. 145 eliminates inconsistencies between the accounting for sale-leaseback transactions and the required accounting for certain lease modifications.  This statement requires that gains and losses from debt extinguishment should be classified as extraordinary items only if they meet the criteria of Accounting Principles Board Opinion 30.  This Statement also amends existing authoritative pronouncements to make various technical corrections, clarify meanings or describe their meanings under changed conditions.  Solitario has adopted SFAS 145 as of January 1, 2003.  The adoption of this Statement has not had a material effect on its financial position or results of operations. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June of 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities", which addresses financial accounting and reporting for costs associated with these activities and generally requires that a liability for a cost associated with an exit or disposal activity shall be recognized and measured initially at its fair value in the period in which the liability is incurred.  SFAS does not apply to costs associated with the retirement of long-lived assets covered by FASB Statement No. 143.  SFAS 146 will be applied prospectively and is effective for exit or disposal activities initiated after December 31, 2002.</P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2001, the FASB issued SFAS No. 143 ""Accounting for Asset Retirement Obligations"". Under SFAS 143, the fair value of a liability for an asset retirement obligation covered under the scope of SFAS 143 would be recognized in the period in which the liability is incurred, with an offsetting increase in the carrying amount of the related long-lived asset. Over time, the liability would be accreted to its present value, and the capitalized cost would be depreciated over the useful life of the related asset. Upon settlement of the liability, an entity would either settle the obligation for its recorded amount or incur a gain or loss upon settlement. Solitario has adopted Statement 143 as of January 1, 2003. The effect to Solitario of adopting this standard is not material.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">2. <U>Mineral Properties</U>:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Peru</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario holds exploration concessions or has filed applications for concessions covering approximately 26,000 acres in Peru.  These applications are subject to normal administrative approvals and the properties are subject to an annual rental of $3.00 per hectare (approximately 2.477 acres per hectare) in June of each year. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;Bongara </P>
<P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario acquired the initial Bongara  exploration concessions in 1993.  The current landholdings consist of concessions covering approximately 16,000 acres in northern Peru (the "Bongara project").</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December 1996, Solitario signed an agreement regarding the Bongara project with a subsidiary of Cominco Ltd. ("Cominco") of Vancouver, B.C., Canada.   After a modification signed in 1999, Cominco had the right to earn a 65% interest in the Bongara project by spending a minimum of $17,000,000 over a five-year period. Cominco paid Solitario  $118,000, including value added taxes of 18%, in January 2000.  In February 2001 Cominco terminated their option to acquire an interest in the Bongara project. Solitario currently holds 100% interest in the property and may seek a new joint venture partner to explore and develop this property.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;Yanacocha</P>
<U><P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 26, 2000 Solitario completed a transaction with an affiliate of Newmont Mining Corporation ("Newmont") and sold its interest in its Yanacocha property for $6 million and a sliding scale net smelter return royalty ("NSR") that varies with the price of gold. Newmont retained $400,000 of the $6 million purchase price to be paid in four annual installments plus interest pending release of certain contingent liabilities.  Solitario received the first two payments of $109,000 and $106,000 (including interest) in April 2002 and 2001, respectively.  Solitario recorded a gain on the sale of the Yanacocha property of $5.8 million during the second quarter of 2000.  The NSR royalty applies to exploration concessions covering approximately 150,000 acres.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;La Pampa</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario holds concessions comprising approximately 4,700</FONT><FONT SIZE=2 COLOR="#ff0000"> </FONT><FONT SIZE=2>acres on the La Pampa exploration property.  In July 2002, Solitario signed an agreement with Bear Creek Mining Company ("Bear Creek") whereby Bear Creek can earn 51% interest in the La Pampa property by expending $4.5 million on exploration of La Pampa over a five-year period.  As part of the agreement, Bear Creek will pay all costs to maintain the concessions.  As part of the agreement Bear Creek must complete a minimum of 1,000 meters of drilling on the property.  Bear Creek may earn an additional 14% interest (for a total of 65%) by completing a bankable feasibility study on the property within two years of earning its 51% interest.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Other Peruvian properties</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario holds concessions comprising approximately 4,400 acres on the Sapalache exploration property. Solitario will conduct limited exploration activities while it seeks a joint venture partners to explore and develop this property. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Brazil</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;Pedra Branca</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario acquired the Pedra Branca platinum-palladium (PGM) Project located in Ceara State, Brazil, as part of the Altoro acquisition in October 2000.  Altoro signed an agreement in May of 1999 with Eldorado Gold Corporation ("Eldorado") whereby Solitario can earn a 70% interest in concessions covering approximately 24,000 acres, by spending $2 million on exploration over three years.  Solitario can earn an additional 20% (90% total) by spending an extra $1 million within five years of the signature date.  Should Eldorado be diluted to 10% this interest converts to a 2% NSR.  Additionally, Solitario controls concessions in its own name covering approximately 185,000 acres for a total of 209,000 acres at the Pedra Branca Project.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February 2000, Altoro signed a letter of intent, which was subsequently assigned to Rockwell Ventures, Inc., of Vancouver, Canada ("Rockwell"), granting Rockwell an option to earn a 60% interest in Altoro's share of the Pedra Branca Project.  Under the terms of the agreement, Rockwell was required to spend $7 million on exploration within four years from July 2000, with a minimum expenditure of $1 million during the first year.  In addition, Rockwell issued to Solitario a total of 125,433 shares and $50,000 in cash in May 2000 upon regulatory approval of the agreement.  In June of 2001, Rockwell terminated its option under the agreement. At December 31, 2002, Solitario owns 100% of the Pedra Branca project subject to the Eldorado Lease discussed above.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 28, 2003 Solitario entered into an agreement with Anglo Platinum whereby Anglo Platinum may earn a 51% interest in the Pedra Branca Project, by spending $7 million on exploration at Pedra Branca over a four-year period.  Anglo Platinum agreed to a minimum expenditure of $500,000 during the first six months of the agreement.  Anglo Platinum can earn an additional 9% interest in Pedra Branca (for a total of 60%) by completing a bankable feasibility study.  Anglo Platinum can also earn an additional 5% interest in Pedra Branca (for a total of 65%) by arranging for financing to put the project into commercial production.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October 2000, we recorded $3,627,000 in mineral property additions for the Pedra Branca project in connection with the acquisition of Altoro.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;Tocantinzinho</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November 1998 Altoro entered into an option agreement (subsequently modified) to acquire a 100% interest in the Tocantinzinho gold property in Brazil.  The agreement covered concessions for approximately 10,000 acres located in the Para State in Brazil.  Solitario terminated the agreement in December of 2001 and recorded a property-write down of $639,000.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Bolivia</P>
<P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;Rincon del Tigre</P>
<P ALIGN="JUSTIFY"></P><DIR>

<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since April 1999 Altoro entered into a series of agreements that allow Solitario to earn a 100% interest in concessions covering 127,000 acres at the Rincon del Tigre PGM property located in Santa Cruz State, Bolivia.  The agreements required Solitario to spend $3.15 million on exploration over six years and to issue 800,000 shares of Altoro, 100,000 shares of which were issued in 1999 and 2000.  The remaining 700,000 shares of Altoro were to be issued as 233,333 shares of Solitario.  Solitario issued 70,834 shares under these agreements during 2001.  In December 2001, Solitario terminated these agreements, made a cash payment to the owner of the Rincon del Tigre concessions of $35,000 and recorded a mineral property write-down of $636,000.  Solitario's remaining share payment requirements were canceled upon termination. </P>
<P ALIGN="LEFT"></P></DIR>

<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;<U>Land and leasehold and exploration costs</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mineral property costs for all Solitario's properties are comprised of land and leasehold costs at December 31, 2002 and 2001. The following items comprised the additions to exploration costs:</P>
<P ALIGN="CENTER">Exploration Expense</P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=379>
<TR><TD WIDTH="51%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">(in thousands)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">2002</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">2001</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">2000</FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Geologic, drilling and assay</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$335</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$707</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$284</FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Field expenses</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">164</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">243</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">394</FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Administrative</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">408</U></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;514</U></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;504</U></FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;&nbsp;Total exploration costs</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>907</U></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>1,464</U></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>1,182</U></FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in the consolidated balance sheet at December 31, 2002 are total assets of $3,797,000 related to Solitario's foreign operations.  Assets totaling $3,794,000 are located in South America in Brazil and Peru.  Assets totaling $3,000 are located in Canada.  </P>
<U><P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">&nbsp;</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">3. <U>Acquisitions:</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>

</U><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As described in Note 9, in October 2000, Solitario acquired 100% of the outstanding common stock of Altoro (the "Transaction"). Solitario accounted for the Transaction using the purchase method of accounting.  The purchase price was $4,996,000, which included the issuance of 6,228,884 shares valued at $4,526,000. The purchase cost of mineral properties acquired was $4,466,000.  This amount was allocated as follows: Pedra Branca in Brazil, $3,573,000; Tocantinzinho in Brazil, $447,000; and Rincon del Tigre in Bolivia, $447,000. The fair value of the remaining assets acquired was $666,000 and the fair value of the liabilities assumed was $136,000. The pro forma results, assuming the transaction occurred as of January 1, 2000 are as follows:</P>
<P ALIGN="JUSTIFY"></P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=337>
<TR><TD WIDTH="73%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">(in thousands)</FONT></TD>
<TD WIDTH="27%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;Year ended&nbsp;</P>
<P ALIGN="RIGHT">December 31,</FONT></TD>
</TR>
<TR><TD WIDTH="73%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="27%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2000&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="73%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Revenues</FONT></TD>
<TD WIDTH="27%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>6,278</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="73%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Net income </FONT></TD>
<TD WIDTH="27%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>3,410</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="73%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Basic and diluted income  per share</FONT></TD>
<TD WIDTH="27%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;0.15</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">4. <U>Related party transactions:</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crown, through its wholly owned subsidiary, Crown Resource Corp. of Colorado owns 41.2% of Solitario.  Crown provides management and technical services to Solitario under a management and technical services agreement originally signed in April 1994 and modified in April 1999, December 2000 and July 2002.  Under the modified agreement Solitario reimburses Crown for direct out-of-pocket expenses; payment of between 25% and 75% of executive and administrative salaries and benefits, rent, insurance and investor relations costs and payment of certain indirect costs and expenses paid by Crown on behalf of Solitario. Management service fees paid by Solitario to Crown were $449,000 for 2002, $590,000 for 2001 and $414,000 for 2000.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October 2001, Solitario invested in two 10% convertible secured promissory notes, ("Senior Notes") totaling $1,000,000 of the $3,600,000 Secured Notes issued by Crown.  The proceeds from the first Senior Note, (the "Solitario Note"), of $350,000 were delivered to Crown.  The proceeds from the second Senior Note, of $650,000 were placed in escrow pending the outcome of the Crown's voluntary petition for bankruptcy, filed in United States Bankruptcy Court, which was filed on March 8, 2002 (the "Bankruptcy").  In March 2002 an additional $200,000 was advanced to Crown out of escrow of which Solitario''s share of the advance was $56,000.  Crown''s plan was confirmed on May 30, 2002 and the remaining balance of the proceeds plus interest was released to Crown on the Effective Date.  The independent Board members of both Crown and Solitario approved the transaction.  The terms of the transaction on the escrowed Senior Notes were the 
same as given to other senior lenders of Crown (the ""Senior Lenders"") and, with regard to the terms of the $350,000 Solitario Note, the terms were negotiated with and approved by the other Senior Lenders.  During 2002, Solitario was paid 182,440 Crown shares as interest under the Senior Notes.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario entered into a Voting Agreement dated as of April 15, 2002 among Zoloto Investors, LP (""Zoloto"") and Crown, who are both stockholders of Crown (the ""Signing Shareholders"").   Pursuant to the Voting Agreement, Solitario and Zoloto agree that they will each vote their owned shares during the term of the Voting Agreement for the election of three designees of Zoloto and one designee of Solitario (the ""Designee Directors"") to the Board of Directors of Crown.  The Signing Shareholders agreed that any shares received by either Signing Shareholder would be subject to the Voting Agreement during its term and any successor, assignee or transferee of shares from either Signing Shareholder would be subject to the terms of the Voting Agreement during its term.  The Voting Agreement terminates on the third anniversary from the date of the first annual meeting of shareholders after the date of the Voting Agreement.  As of Decemb
er 31, 2002, the Signing Shareholders collectively held 523,418 shares or approximately 13.6% of the outstanding shares of Crown.  As of December 31, 2002, Solitario owns 182,440 shares of Crown common stock, received as interest on its Senior Notes, has warrants to acquire 3,057,143 shares of Crown common stock at between $0.60 and $0.75 per share and could also acquire up to 3,057,143 additional shares of Crown common stock through conversion of its Senior Notes.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June 26, 2001, Solitario agreed to acquire 200,000 shares of Canyon Resources Corporation common stock from Crown at its fair market value of $200,000 at that date.  Solitario sold the shares for $245,000 in February 2002, the fair market value at that date.  The transaction provided additional working capital to Crown, and was approved by independent Board members of both Crown and Solitario.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February 21, 2003, Solitario invested $400,000 in Crown's 10% convertible subordinated promissory notes due 2006 Series B (The "Subordinated B Notes").  The issuance of up to $3 million of the Subordinated B Notes was authorized by Crown on February 7, 2003 by Crown's Board of Directors.  On February 21, 2003, Crown closed the financing by issuing $2.7 million of the Subordinated B Notes.  The Subordinated B Notes are convertible into common stock of Crown at $0.75 per share.  The Subordinated B Notes pay interest at 10% in stock or cash at Crown's option, and mature on October 19, 2006, the same date as Crown's Senior Notes.  Solitario's investment was on the same terms as all other investors.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">5. <U>Income Taxes</U>:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario's income tax expense (benefit) consists of the following:</P>
<P ALIGN="JUSTIFY"></P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=439>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">(in thousands)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;2002&nbsp;</U></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;2001&nbsp;</U></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;2000&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Deferred</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">U.S.</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$286</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$(359)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Foreign</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(3)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(312)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(347)</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Operating loss and credit carryovers:</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">U.S.</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(286)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">359&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Foreign</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">312</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">347</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Income tax benefit</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated loss before income taxes includes losses from foreign operations of $1,063,000, $3,057,000 and $1,275,000 in 2002, 2001 and 2000, respectively.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net deferred tax assets/liabilities in the December 31, 2002 and 2001 balance sheets include the following components:</P>
<P ALIGN="JUSTIFY"></P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=373>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(in thousands)</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;2002&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;2001&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Deferred tax assets:</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Net operating loss (NOL) carryovers</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$3,848</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$3,464&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Capital loss carryovers</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">622</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">622&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Royalty</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,560</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,560&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Other</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(105)</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">91&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Valuation allowance</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(4,678)</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">(4,792</U>)</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Deferred tax assets</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">1,247</U></FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;945</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Deferred tax liabilities:</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Exploration and development costs</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">1,247</U></FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;945</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax assets/liabilities</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A reconciliation of expected federal income taxes on income (loss) from operations at statutory rates, with the expense (benefit) for income taxes is as follows:</P>
<P ALIGN="JUSTIFY"></P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=433>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(in thousands)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;2002&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;2001&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;2000&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Expected income tax (benefit)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$(568)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$(1,243)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$1,457&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Non-deductible foreign expenses</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">495</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">93&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">109&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Disposition of investment in Peru</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,818&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Foreign tax rate differences</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(14)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(7)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">State income tax</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">12</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(76)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">351&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Valuation allowance</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">73</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,221&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(3,727)</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Other</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2</U>&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12</U>&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(20</U>)</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Income tax benefit</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December 31, 2002, Solitario has unused U.S. Net Operating Loss ("NOL") and capital loss carryovers of $3,715,000 and $1,594,000, respectively, which begin to expire commencing 2008 and 2004, respectively.  Solitario also has foreign NOL carryovers at December 31, 2002 of $6,978,000 that begin to expire four years after the first year in which taxable income arises.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">6. <U>Fair Value of Financial Instruments</U>:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For certain of Solitario's financial instruments, including cash and cash equivalents, the carrying amounts approximate fair value due to their short maturities. Solitario's marketable equity securities are carried at their estimated fair value based on quoted market prices.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair value of the Secured Notes is estimated at December 31, 2002 and 2001 to be 1,250,000 and 1,000,000, per quoted market prices.  The fair value of the Crown warrants held by Solitario is $153,000 per quoted market prices as of December 31, 2002.  The valuation credit for the fair value is included as other comprehensive income in stockholders' equity as of December 31, 2002.  The valuation allowance was calculated as $47,000 as of December 31, 2001 utilizing a Black-Scholes model and was charged to other comprehensive loss in stockholders' equity as of December 31, 2001.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">7. <U>Commitments and Contingencies</U>:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In acquiring its interests in mineral claims and leases, Solitario has entered into lease agreements, which generally may be canceled at its option.  Solitario is required to make minimum rental and option payments in order to maintain its interests in certain claims and leases.  See Note 2.  Solitario estimates its 2003 mineral property rental and option payments to be $77,000 of which Solitario's portion is estimated to be approximately $52,000. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">8. <U>Stock Option Plan</U>:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March 4, 1994, Solitario's Board of Directors (the "Board") adopted the 1994 Stock Option Plan (the "Plan").  Up to 1,100,000 shares of Solitario's common stock were authorized for issuance under the Plan.  The Board voted for, and shareholders approved, amendments that have increased the authorized shares under the Plan to 3,736,000 as of June 2002.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All options have been granted at exercise prices that are determined by the Board to be the fair market value on the date of grant.  The options expire five years from the date of grant, and are subject to certain vesting provisions, as determined by the Board.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The activity in the Plan for the three years ended December 31, 2002 is as follows:</P>
<P ALIGN="JUSTIFY"></P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=624>
<TR><TD WIDTH="23%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=1><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=1><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2001&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=1><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Weighted</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Weighted</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Weighted</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Average</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Average</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Average</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Exercise</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Exercise</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Exercise</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">Options&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Price (Cdn$)<SUP>1</SUP></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Options</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Price (Cdn$)<SUP>1</SUP></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Options</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Price (Cdn$)<SUP>1</SUP></FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="LEFT">Outstanding, beginning &nbsp;&nbsp;&nbsp;&nbsp;of year</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM">
<FONT SIZE=1><P ALIGN="RIGHT">2,282,000&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM">
<FONT SIZE=1><P ALIGN="RIGHT">1.10</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=1><P ALIGN="RIGHT">1,724,750&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM">
<FONT SIZE=1><P ALIGN="RIGHT">1.22</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<FONT SIZE=1><P ALIGN="RIGHT">1,704,750&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM">
<FONT SIZE=1><P ALIGN="RIGHT">1.23</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="JUSTIFY">Granted</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">1,140,000&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">0.73</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">980,000&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">0.94</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">45,000&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">1.30</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="JUSTIFY">Forfeited</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">(25,000)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">1.17</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="JUSTIFY">Expired</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=1><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;(50,000</U>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">1.16</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=1><P ALIGN="RIGHT">&nbsp;(422,750</U>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">1.31</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=1><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</U>&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="JUSTIFY">Outstanding, end of year</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=1><P ALIGN="RIGHT">3,372,000&nbsp;</U></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">0.96</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=1><P ALIGN="RIGHT">2,282,000&nbsp;</U></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">1.08</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=1><P ALIGN="RIGHT">1,724,750&nbsp;</U></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">1.22</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="JUSTIFY">Exercisable, end of year</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">2,742,000&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">1.00</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">1,812,500&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">1.10</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">1,472,750&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="RIGHT">1.22</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In March 1999, the shareholders of Solitario approved a repricing of existing options for current employees, officers and directors to Cdn$1.16 per share, which was the market price of Solitario's stock.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The options outstanding at December 31, 2002 have a range of exercise prices of between Cdn$1.30 and Cdn$0.94 and a weighted average remaining contractual life of 3.06 years.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the repricing of existing options in 1999, Solitario began to account for the awards as variable as of July 1, 2000, in accordance with FASB Interpretation No. 44, "Accounting for Certain Transactions involving Stock Compensation" (an interpretation of APB 25).  Accordingly, an increase in the current market price of Solitario common stock above the higher of the option strike price and the market price of Solitario's common stock as of July 1, 2000, multiplied by vested options outstanding will be recorded as compensation expense in the period of the price increase.  A subsequent reduction in the current market price, to the extent of previously recorded compensation expense will be credited as a reduction of compensation expense.  There was no compensation expense recorded during 2002, 2001 or 2000 as a result of variable accounting for the repriced options.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The following table summarizes Solitario's stock options as of December 31, 2002</P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="RIGHT"><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=595>
<TR><TD WIDTH="68%" VALIGN="TOP" COLSPAN=4>
<U><FONT SIZE=2><P ALIGN="CENTER">Options Outstanding</U></FONT></TD>
<TD WIDTH="32%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=2><P ALIGN="CENTER">Options Exerciseable</U></FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Exercise price</P>
<P ALIGN="CENTER">Cdn$</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Number</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Weighted Average</P>
<P ALIGN="CENTER">Remaining Contractual</P>
<P ALIGN="CENTER">Life (in years)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Weighted Average Exercise</P>
<P ALIGN="CENTER">Price</P>
<P ALIGN="CENTER">Cdn$</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Number Exercisable</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Weighted Average Exercise</P>
<P ALIGN="CENTER">Price</P>
<P ALIGN="CENTER">Cdn$</FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">$0.73</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">1,140,000</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">3.3</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">$0.73</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;742,500</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">$0.73</FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">$0.94</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;980,000</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">2.3</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">$0.94</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;755,000</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">$0.94</FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">$1.16</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;747,000</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">1.3</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">$1.16</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;747,000</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">$1.16</FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">$1.19 to $1.22</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;395,000</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">1.5</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">$1.22</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;395,000</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">$1.22</FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">$1.30</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;110,000</U></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">1.9</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">$1.30</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;102,500</U></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">$1.30</FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Total</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">3,372,000</U></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">2,742,000</U></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>
</P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">9. <U>Stockholders'' Equity</U>:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October 2000, Solitario completed a Plan of Arrangement ("the Plan") with Altoro, whereby Altoro became a wholly owned subsidiary of Solitario.  In connection with the Plan, Solitario issued 6,228,894 shares to Altoro shareholders and option holders.  Solitario also reserved 825,241 Solitario shares for issuance upon the exercise of 825,241 warrants in exchange for Altoro warrants.  During 2000, Solitario issued 261,232 shares upon the exercise of the above warrants and 302,898 of the warrants expired unexercised.  The remaining 261,111 warrants expired unexercised during 2001.  Primarily as a result of the issuance of Solitario shares in connection with the Plan, CRCC's ownership percentage of Solitario was reduced from 57.2% (prior to the transaction) to 41.2% at December 31, 2002.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">10. <U>Selected Quarterly Financial Data (Unaudited):</P>
</U><P ALIGN="JUSTIFY"></P></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=685>
<TR><TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">(in thousands)</FONT></TD>
<TD WIDTH="38%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=2><P ALIGN="CENTER">2002</FONT></TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=2><P ALIGN="CENTER">2001</FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">March 31,</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">June 30,</U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">Sept. 30,</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">Dec. 31,</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">March 31,</U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">June 30,</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">Sept. 30,</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">Dec. 31,</U></FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Revenues</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;31&nbsp;</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;25&nbsp;</U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;44</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;37&nbsp;</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;87&nbsp;</U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;63&nbsp;</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47&nbsp;</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;39&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Net income (loss)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(483)</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(430)</U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(442)</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(315)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(535)</U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(590)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(1,863)</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(669)</U></FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Basic and fully diluted &nbsp;&nbsp;&nbsp;earnings (loss) per &nbsp;&nbsp;&nbsp;common and common &nbsp;&nbsp;&nbsp;equivalent share:</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(0.02)</U></FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(0.02)</U></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(0.02)</U></FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(0.01)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(0.02)</U></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(0.03)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(0.08)</U></FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">$(0.03)</U></FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">11. <U>Subsequent Events (unaudited):</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November 20, 2003, Crown and Kinross Gold Corporation ("Kinross") announced that the two companies have executed an Acquisition Agreement and Agreement and Plan of Merger (the "Merger Agreement") whereby Kinross will acquire Crown and its 100%-owned Buckhorn Mountain gold deposit located in north central Washington State, USA, approximately 67 kilometers (42 miles) by road from Kinross' Kettle River gold milling facility.  Under the terms of the Merger Agreement, shareholders of Crown will receive 0.2911 shares of Kinross for each share of Crown.  The transaction contemplated by the Merger Agreement is subject to regulatory approvals, a minimum two-thirds approval at a special meeting of Crown shareholders and customary closing conditions.  It is the intent of Crown that the spin-off of the Solitario shares will take place prior to the completion of the acquisition by Kinross. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">         On November 8, 2003 Crown announced that it would be distributing its (through CRCC) entire holdings of 9,633,585 shares of Solitario's common stock.  Of these shares, a total of 3,140,162 shares owned by CRCC are held with an escrow agent pursuant to the Escrow Agreement.  Solitario provided notice of and will hold a special meeting of its shareholders on December 29, 2003 where they will vote on approval of the release of the Escrowed Shares (the "Release").  Approval of the Release by Solitario's shareholders other than CRCC and its associates and affiliates (the "Disinterested Shareholders") will allow for CRCC to dividend Solitario's shares to Crown to enable Crown to dividend up to its entire holdings of 9,633,585 of Solitario shares to Crown's shareholders.  If Solitario's Disinterested Shareholders do not approve the Release, the Escrowed Shares may not be available for dividend by Crown.</P>
<P ALIGN="LEFT"> </P>
<P ALIGN="JUSTIFY">         As of December 9, 2003, Solitario owns 965,491 shares of Crown common stock and has warrants to acquire up to 3,057,143 additional shares of Crown common stock at prices between $0.60 and $0.75 per share.  In addition, Solitario could acquire an additional 3,057,143 shares of Crown common stock through the conversion of the Crown Senior Notes.  Assuming the completion of the exchange of shares as contemplated by the Merger Agreement, the Release, all of Crown's convertible debentures are converted, all of Crown's options are exercised and all of Crown's warrants are exercised on a cashless basis at the market price of Crown common stock on December 9, 2003, of $2.55 per share, Solitario estimates it would own approximately 6,251,206 shares of Crown, which would convert into approximately 1,819,726 shares of Kinross.  The Kinross shares would be valued at approximately $15.6 million, assuming the December 9, 2003 market price of $8.60 per share for each Kinross share.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November 5, 2003 Solitario's Subordinated B Note was automatically converted into 533,333 shares of Crown.  The conversion was in accordance with the terms of the Subordinated B note, which allowed for an automatic conversion if Crown's common stock traded above $1.75 per share for twenty consecutive trading days. </P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER">CONSOLIDATED BALANCE SHEETS</P>
<P ALIGN="CENTER">(Unaudited)</P>
<P ALIGN="LEFT"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=521>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(in thousands of U.S. dollars,</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">September 30,</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">December 31,</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;except share amounts)</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2003&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P ALIGN="LEFT">Assets</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Current assets:</B></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Cash and cash equivalents</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;342&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;1,405&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Note receivable </FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">112&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">111&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Investments in marketable equity securities, at fair value</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">769&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">409&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Prepaid expenses and other</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,273&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,952&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Mineral properties, net</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">3,794&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">3,743&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Notes receivable from Crown, net of discount</B></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,332&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">915&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Crown warrants, at fair value</B></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">2,473&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">153&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Other assets</B></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;140</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;8,883</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;6,903</U>&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="LEFT"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=521>
<TR><TD VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P ALIGN="LEFT">Liabilities and Stockholders' Equity</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Current liabilities:</B></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Accounts payable</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Due to Crown</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27</U></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">49</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">99&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Stockholders' equity:</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" ROWSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Preferred stock, $0.01 par value, none issued and outstanding September 30, 2003 and December 31, 2002</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=47>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Common stock, $0.01 par value, 23,407,134 issued and<BR>
&nbsp;&nbsp;&nbsp;&nbsp;outstanding at September 30,  2003 and December 31,<BR>
&nbsp;&nbsp;&nbsp;&nbsp;2002</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=47>
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">234&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=47>
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">234&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Additional paid-in capital</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">21,189&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">21,189&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Accumulated deficit</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(15,306)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(14,837)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Accumulated other comprehensive income</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;2,717</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;218</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;8,834</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;6,804</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Total liabilities and stockholders' equity</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;8,883</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;6,903</U>&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">See Notes to Unaudited Consolidated Financial Statements</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF OPERATIONS</P>
<P ALIGN="LEFT">(Unaudited)</P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=549>
<TR><TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(in thousands of U.S. Dollars<BR>
except per share amounts)</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Three months ended<U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 30,&nbsp;&nbsp;  </U></FONT></TD>
<TD WIDTH="31%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nine months ended<U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 30,&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2003</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;2002</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;2003</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;2002</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="LEFT">Revenues:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Interest income</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;91</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;&nbsp;&nbsp;238</U>&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;&nbsp;&nbsp;100</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="LEFT">Costs and expenses:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Exploration expense</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">144&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">216&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">170&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">711&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Depreciation, depletion and amortization</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">14&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">18&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">34&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;General and administrative</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">74&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">63&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">218&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">300&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Management fees</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">89&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">105&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">275&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">365&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Loss on sale of assets and investments</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</U></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26</U>&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">Total costs and expenses</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;313</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;486</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;707</U>&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;1,455</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="LEFT">Net loss</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;(222</U>)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;&nbsp;(442</U>)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;(469</U>)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>(1,355</U>)</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="LEFT">Basic and diluted net loss per share</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;(0.01</U>)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;(0.02</U>)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;(0.02</U>)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;(0.06</U>)</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="LEFT">Weighted average number of shares<BR>
outstanding  basic and diluted</B></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">23,407</U>&nbsp;</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" COLSPAN=2>
<U><FONT SIZE=2><P ALIGN="RIGHT">23,407</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">23,407</U>&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM">
<U><FONT SIZE=2><P ALIGN="RIGHT">23,407</U>&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">See Notes to Unaudited Consolidated Financial Statements</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="CENTER">SOLITARIO RESOURCES CORPORATION</P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF CASH FLOWS</P>
<P ALIGN="CENTER">(Unaudited)</P>
<P ALIGN="LEFT"></P></FONT>
<P ALIGN="LEFT"><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=465>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">(in thousands of U.S. dollars)</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=2><P ALIGN="CENTER">Nine months</P>
<P ALIGN="CENTER">ended September 30,</U></FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">2003</U></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">2002</U></FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Operating activities:</B></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;Net loss</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(469)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(1,355)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;Adjustments:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Depreciation, depletion and amortization</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">18&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">34&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Loss on sale of assets and write down of investments</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">26&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">45&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Interest income received in stock</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(207)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(41)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Interest income from amortization of warrant discount</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(18)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(17)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Changes in operating assets and liabilities:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(23)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">11</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Accounts payable and other current liabilities</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(4)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(27)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Due to CRCC</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(46)</U></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19</U>)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;(723</U>)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;(1,369</U>)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="LEFT">Investing activities:</B></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Proceeds from sale of marketable equity securities</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">381&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Proceeds from note receivable</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">111&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">109&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Proceeds from asset sales</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">17</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Purchase of securities</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(400)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(130)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">  Additions to mineral properties</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;(51)</U></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(50)</U></FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;(340</U>)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;327</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Net decrease in cash and cash equivalents</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(1,063)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(1,042)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Cash and cash equivalents, beginning of period</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">1,405</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;2,723</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="LEFT">Cash and cash equivalents, end of period</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;&nbsp;342</U>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;1,681</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>
</P>

<FONT SIZE=2><P ALIGN="JUSTIFY">See Notes to Unaudited Consolidated Financial Statements</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="CENTER">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</P>
<P ALIGN="CENTER">(Unaudited)</P>
<P ALIGN="LEFT"></P>
<P ALIGN="LEFT">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Accounting Policies</P>
</U><P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying interim consolidated financial statements of Solitario Resources Corporation ("Solitario") for the three and nine months ended September 30, 2003 and 2002 are unaudited and are prepared in accordance with accounting principles generally accepted in the United States.  They do not include all disclosures required by generally accepted accounting principles for annual financial statements, but in the opinion of management, include all adjustments, consisting of only normal recurring items, necessary for a fair presentation.  Interim results are not necessarily indicative of results, which may be achieved in the future or for the full year ended December 31, 2003.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These financial statements should be read in conjunction with the financial statements and notes thereto which are included in Solitario's annual report for the year ended December 31, 2002.  The accounting policies set forth in those annual financial statements are the same as the accounting policies utilized in the preparation of these financial statements, except as modified for appropriate interim financial statement presentation.  The unaudited financial statements include amounts that have been reclassified to conform to current presentation.</P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Recent Developments</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November 20, 2003, Crown and Kinross Gold Corporation ("Kinross") announced that the two companies have executed an Acquisition Agreement and Agreement and Plan of Merger (the "Merger Agreement") whereby Kinross will acquire Crown and its 100%-owned Buckhorn Mountain gold deposit located in north central Washington State, USA, approximately 67 kilometers (42 miles) by road from Kinross' Kettle River gold milling facility.  Under the terms of the Merger Agreement, shareholders of Crown will receive 0.2911 shares of Kinross for each share of Crown.  The transaction contemplated by the Merger Agreement is subject to regulatory approvals, a minimum two-thirds approval at a special meeting of Crown shareholders and customary closing conditions.  It is the intent of Crown that the spin-off of the Solitario shares will take place prior to the completion of the acquisition by Kinross. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">         On November 8, 2003 Crown announced that it would be distributing its (through CRCC) entire holdings of 9,633,585 shares of Solitario's common stock.  Of these shares, a total of 3,140,162 shares owned by CRCC are held with an escrow agent pursuant to the Escrow Agreement.  Solitario provided notice of and will hold a special meeting of its shareholders on December 29, 2003 where they will vote on approval of the release of the Escrowed Shares (the "Release").  Approval of the Release by Solitario's shareholders other than CRCC and its associates and affiliates (the "Disinterested Shareholders") will allow for CRCC to dividend Solitario's shares to Crown to enable Crown to dividend up to its entire holdings of 9,633,585 of Solitario shares to Crown's shareholders.  If Solitario's Disinterested Shareholders do not approve the Release, the Escrowed Shares may not be available for dividend by Crown.</P>
<P ALIGN="LEFT"> </P>
<P ALIGN="JUSTIFY">         As of December 9, 2003, Solitario owns 965,491 shares of Crown common stock and has warrants to acquire up to 3,057,143 additional shares of Crown common stock at prices between $0.60 and $0.75 per share.  In addition, Solitario could acquire an additional 3,057,143 shares of Crown common stock through the conversion of the Crown Senior Notes.  Assuming the completion of the exchange of shares as contemplated by the Merger Agreement, the Release, all of Crown's convertible debentures are converted, all of Crown's options are exercised and all of Crown's warrants are exercised on a cashless basis at the market price of Crown common stock on December 9, 2003, of $2.55 per share, Solitario estimates it would own approximately 6,251,206 shares of Crown, which would convert into approximately 1,819,726 shares of Kinross.  The Kinross shares would be valued at approximately $15.6 million, assuming the December 9, 2003 market price of $8.60 per share for each Kinross share.</P>
<P ALIGN="JUSTIFY">  </P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November 5, 2003 Solitario's Subordinated B Note was automatically converted into 533,333 shares of Crown.  The conversion was in accordance with the terms of the Subordinated B note, which allowed for an automatic conversion if Crown's common stock traded above $1.75 per share for twenty consecutive trading days. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="LEFT">New accounting pronouncements</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April 2003, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 149 "Amendment of Statement 133 on Derivative Instruments and Hedging Activities" (SFAS No. 149") to provide amend and clarify financial accounting and reporting for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities. The changes in this statement improve financial reporting by requiring that contracts with comparable characteristics be accounted for similarly to achieve more consistent reporting of contracts as either derivative or hybrid instruments. SFAS 149 has been adopted by Solitario and will be applied prospectively for contracts entered into or modified after June 30, 2003.  The adoption of this statement has not had a material effect on Solitario's consolidated financial position or results of operations. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2003, the FASB issued SFAS No. 150 "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity" (SFAS No. 150") which clarifies the classification as liabilities for certain financial instruments including equity shares that are mandatorily redeemable, or a financial instrument other than equity shares that has an obligation to repurchase the instrument with equity shares, including a conditional obligation to settle the financial instrument with equity shares.  SFAS No. 150 is effective for financial instruments entered into after May 31, 2003.  The adoption of this statement has not had a material effect on Solitario's consolidated financial position or results of operations.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Emerging Issues Task Force is in the process of forming a committee to evaluate certain mining industry accounting issues, including issues arising from the implementation of Statement of Financial Accounting Standards No. 141 and Statement of Financial Accounting Standards No. 142 ("SFAS No. 142") to business combinations within the mining industry and accounting for goodwill and other intangibles. Although such committee has not yet been formed, and no formal agenda has been set, the issues related to the business combinations within the mining industry and accounting for goodwill and other intangibles may be addressed along with the related question of whether mineral interests conveyed by leases represent tangible or intangible assets and the amortization of such assets. While Solitario believes that its accounting for its mineral interests conveyed by leases is in accordance with generally accepted accounting principles, 
Solitario cannot predict whether the deliberations of this committee will ultimately modify or otherwise result in new accounting standards or interpretations thereof that differ from its current practices. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Accounting for Stock Based Compensation</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario follows SFAS 148, "Accounting for Stock-Based Compensation - Transition and Disclosure - an amendment of FASB Statement No. 123" and Accounting Principles Board Opinion ("APB") No. 25, "Accounting for Stock Issued to Employees".  Under Solitario's stock option plans, the exercise price of stock options issued to employees equals the market price of the stock on the measurement date.  As a result of repricing of its options in 1999, Solitario accounts for all grants which have been repriced as variable awards and records increases and decreases in compensation expense during the period based upon changes in the market price of Solitario's stock as required by APB 25.  Solitario has not recorded any compensation expense on these variable awards  for the three or nine months ended September 30, 2003 or 2002. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro forma information has been computed as if Solitario had accounted for its stock options under the fair value method of SFAS No.s 148 and 123.  The fair values of options granted during the third quarter of 2003 were estimated at the date of grant using a Black-Scholes option pricing model. The following pro forma information is provided for the fair value of options outstanding during the three and nine months of 2003 and 2002.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<P ALIGN="RIGHT"><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=570>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=31><P></P></TD>
<TD WIDTH="26%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=31>
<FONT SIZE=2><P ALIGN="CENTER">For the three months ended September 30,</FONT></TD>
<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=31>
<FONT SIZE=2><P ALIGN="CENTER">For the nine months ended September 30,</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=31>
<FONT SIZE=2><P ALIGN="LEFT">(in thousands, except per</P>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;share amounts)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=31>
<U><FONT SIZE=2><P ALIGN="RIGHT">2003</U></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=31>
<U><FONT SIZE=2><P ALIGN="RIGHT">2002</U></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=31>
<U><FONT SIZE=2><P ALIGN="RIGHT">2003</U></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=31>
<U><FONT SIZE=2><P ALIGN="RIGHT">2002</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="LEFT">Net loss as reported</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$(222)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$(442)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$(469)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$(1,355)</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=47>
<FONT SIZE=2><P ALIGN="LEFT">Deduct total stock-based employee</P>
<P ALIGN="LEFT">  compensation &nbsp;&nbsp;expense determined under fair </P>
<P ALIGN="LEFT">  value based method for all awards</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=47>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(42</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=47>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(14</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=47>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(69</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=47>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;(240</U>)</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="LEFT">Pro forma net loss</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;(264</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;(456</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;(538</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>(1,595</U>)</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="LEFT">Basic and diluted net loss per share</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;As reported</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;<U>(0.01</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;<U>(0.02</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;<U>(0.02</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;<U>(0.06</U>)</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="LEFT">&nbsp;&nbsp;Pro forma</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;<U>(0.01</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;<U>(0.02</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;<U>(0.02</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;<U>(0.07</U>)</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Net Loss Per Common Share</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The loss per share is presented in accordance with the provisions of SFAS No. 128, Earnings Per Share (""EPS""). Basic EPS is calculated by dividing the income or loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Basic and diluted EPS were the same for the three and nine months ended September 30, 2003 and 2002 because the Company had losses from operations and therefore, the effect of all potential common stocks was anti-dilutive.</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options and their equivalents are included in diluted EPS computations through the ""treasury stock method"" unless they are antidilutive. Common share equivalents are excluded from the computations in loss periods, as their effect would be antidilutive.&nbsp; As of September 30, 2003 Solitario had stock options which could be exercised for 3,457,000 shares that have been excluded from the weighted-average number of common shares outstanding for the diluted net loss per share computations, as they are antidilutive.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Comprehensive Income (Loss)</U>  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following represents comprehensive income (loss) and its components:</P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="RIGHT"><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=588>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=32>
<FONT SIZE=2><P ALIGN="LEFT">(in thousands)</FONT></TD>
<TD WIDTH="32%" VALIGN="TOP" COLSPAN=2 HEIGHT=32>
<FONT SIZE=2><P ALIGN="CENTER">Three months ended </P>
<P ALIGN="CENTER">September 30,</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 HEIGHT=32>
<FONT SIZE=2><P ALIGN="CENTER">Nine months ended </P>
<P ALIGN="CENTER">September 30,</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=16>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;2003&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;2002&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;2003&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;2002&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="LEFT">Net loss</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;(222)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$(442)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;(469)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$(1,355)</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="LEFT">Unrealized gain on marketable equity securities</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=16>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;1,175</U>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;223</U>&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;2,499</U>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;432</U>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="LEFT">Comprehensive income (loss)</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;&nbsp;&nbsp;953</U>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>(219</U>)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;2,030</U>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>(923</U>)</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=2><P ALIGN="LEFT"></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exploration Expense</P>
<P ALIGN="LEFT"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following items comprised the additions to exploration expense:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<P ALIGN="RIGHT"><TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=604>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=32>
<FONT SIZE=2><P ALIGN="LEFT">(in thousands)</FONT></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=2 HEIGHT=32>
<FONT SIZE=2><P ALIGN="CENTER">Three months ended </P>
<P ALIGN="CENTER">September 30,</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 HEIGHT=32>
<FONT SIZE=2><P ALIGN="CENTER">Nine months ended </P>
<P ALIGN="CENTER">September 30,</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=15>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;2003&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;2002&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;2003&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;2002&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="LEFT">Geologic, drilling and assay</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;79</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;56</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;387</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$242</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="LEFT">Field expenses</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">50</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">50</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">122</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">130</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="LEFT">Administrative</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">27</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">110</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">118</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">339</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="LEFT">Reimbursement from Anglo Platinum (see below)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=15>
<U><FONT SIZE=2><P ALIGN="RIGHT">(12</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<U><FONT SIZE=2><P ALIGN="RIGHT">(457</U>)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;-&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="LEFT">Total exploration expense</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>144</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>216</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>&nbsp;170</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$<U>711</U></FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 28, 2003 Solitario entered into an agreement with Anglo American Platinum Corporation, Ltd. ("Anglo Platinum") whereby Anglo Platinum may earn a 51% interest in the Pedra Branca Project, by spending $7 million on exploration at Pedra Branca over a four-year period.  Anglo agreed to a minimum expenditure of $500,000 during the first six months of the agreement.  Anglo can earn an additional 9% interest in Pedra Branca (for a total of 60%) by completing a bankable feasibility study. Anglo can also earn an additional 5% interest in Pedra Branca (for a total of 65%) by arranging for financing to put the project into commercial production.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Related Party Transactions</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2003, Crown owned 41.2% of Solitario, which was reduced to 38.7% on November 4, 2003 upon the private placement of 1.5 million shares of Solitario common stock.  Crown provides management and technical services to Solitario under a management and technical services agreement originally signed in April 1994 and modified in April 1999, December 2000 and July 2002.  Under the modified agreement Solitario reimburses Crown for direct out-of-pocket expenses; payment of between 25% to 75% of executive and administrative salaries and benefits, rent, insurance and investor relations costs and payment of certain indirect costs and expenses paid by Crown on behalf of Solitario.    Management service fees paid by Solitario were $89,000 and $105,000 for the three months ended September 30, 2003 and 2002, respectively and $275,000 and $365,000 for the nine months ended September 30, 2003 and 2002, respectively. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October 2001, Solitario invested in two 10% convertible secured promissory notes, ("Senior Notes") totaling $1,000,000 of the $3,600,000 Secured Notes issued by Crown.  The proceeds from the first Senior Note, (the "Solitario Note"), of $350,000 were delivered to Crown.  The proceeds from the second Senior Note, of $650,000 were placed in escrow pending the outcome of the Crown's voluntary petition for bankruptcy, which was filed in United States Bankruptcy Court on March 8, 2002 (the "Bankruptcy").  In March 2002 an additional $200,000 was advanced to Crown out of escrow of which Solitario''s share of the advance was $56,000.  Crown''s plan was confirmed on May 30, 2002 and the remaining balance of the proceeds plus interest was released to Crown during June 2002.  The independent Board members of both Crown and Solitario approved the transaction.  The terms of the transaction on the escrowed Senior Notes were the same as give
n to other senior lenders of Crown (the ""Senior Lenders"") and, with regard to the terms of the Solitario Note, the terms were negotiated with and approved by the other Senior Lenders. Solitario was paid 89,522 and 70,450 Crown shares as interest on the Senior and Subordinated B Notes (discussed below) in the third quarter of 2003 and 2002, respectively and 249,718 and 210,567 Crown shares as interest on the Senior Notes in the first nine months of 2003 and 2002, respectively.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of the investment in the Senior Notes, Solitario also received two warrants.  The first warrant gives Solitario the right to purchase 1,857,143 shares of Crown for $0.75 through October 2006.  The second warrant gives Solitario the right to purchase 1,200,000 shares of Crown at $0.60 through October 2006.  The fair value of the warrants at the time of issuance, $110,000, was recorded as a discount to the Senior Notes.  This discount is being amortized over the life of the Senior Notes as additional interest income.  Solitario recorded $6,000 of additional interest from the amortization of the discount for both of the three-month periods ended September 30, 2003 and 2002.  The fair value of the warrants, based upon a quoted bid price, was $2,473,000 as of September 30, 2003 and $153,000 at December 31, 2002.<B> </B>Solitario records any increase or decrease in the fair value of the warrants as other comprehensive income or 
loss in stockholders' equity.  Solitario recorded an increase in the fair value of the warrants of $944,000 for the three months ended September 30, 2003 and no change for the three months ended September 30, 2002.  Solitario recorded an increase in the value of the warrants of $2,320,000 and $106,000 for the nine months ended September 30, 2003 and 2002 respectively.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solitario entered into a shareholder voting agreement (the "Voting Agreement") dated as of April 15, 2002 among Solitario, Zoloto Investors, LP ("Zoloto") and Crown. Zoloto and Solitario are each stockholders of Crown (together referred to herein as the "Signing Shareholders").   Pursuant to the Voting Agreement, Solitario and Zoloto agree that they will each vote their owned shares during the term of the Voting Agreement for the election of three designees of Zoloto and one designee of Solitario (the "Designee Directors") to the Board of Directors of Crown.  In addition, the Signing Shareholders agreed that any shares received by either Signing Shareholder would be subject to the Voting Agreement during its term and any successor, assignee or transferee of shares from either Signing Shareholder would be subject to the terms of the Voting Agreement during its term.  The Voting Agreement terminates on June 25, 2006.  As of Septembe
r 30, 2003, the Signing Shareholders collectively held 1,200,533 shares of Crown common stock or approximately 21.3% of the outstanding shares of Crown.  As of September 30, 2003, Solitario owns 432,158 shares of Crown common stock, received as interest on its Senior and Subordinated B Notes, has warrants to acquire 3,057,143 shares of Crown common stock at prices between $0.60 and $0.75 per share and could also acquire up to 3,057,143 additional shares of Crown common stock through conversion of its Senior Notes.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February 21, 2003, Solitario invested $400,000 in Crown's 10% convertible subordinated promissory notes due 2006 Series B (The "Subordinated B Notes").  The issuance of up to $3 million of the Subordinated B Notes was authorized by Crown on February 7, 2003 by Crown's Board of Directors.  On February 21, 2003, Crown closed the financing by issuing $2.7 million of the Subordinated B Notes.  The Subordinated B Notes are convertible into common stock of Crown at $0.75 per share.  The Subordinated B Notes pay interest at 10% in stock or cash at Crown's option, and mature on October 19, 2006, the same date as Crown's Senior Notes.  Solitario's investment was on the same terms as all other investors.</P>
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