<SEC-DOCUMENT>0000917225-12-000035.txt : 20120702
<SEC-HEADER>0000917225-12-000035.hdr.sgml : 20120702
<ACCEPTANCE-DATETIME>20120702135206
ACCESSION NUMBER:		0000917225-12-000035
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20120626
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20120702
DATE AS OF CHANGE:		20120702

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOLITARIO EXPLORATION & ROYALTY 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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32978
		FILM NUMBER:		12939682

	BUSINESS ADDRESS:	
		STREET 1:		4251 KIPLING STREET
		STREET 2:		SUITE 390
		CITY:			WHEAT RIDGE
		STATE:			CO
		ZIP:			80033
		BUSINESS PHONE:		3035341030

	MAIL ADDRESS:	
		STREET 1:		4251 KIPLING STREET
		STREET 2:		SUITE 390
		CITY:			WHEAT RIDGE
		STATE:			CO
		ZIP:			80033

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SOLITARIO RESOURCES CORP
		DATE OF NAME CHANGE:	20000711
</SEC-HEADER>
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<TYPE>8-K
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<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0"><B>Form&nbsp;8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0">CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d)<BR>
OF THE SECURITIES EXCHANGE ACT OF 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0">Date of Report (Date of
earliest event reported): June 26, 2012</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0"><B>SOLITARIO EXPLORATION
&amp; ROYALTY CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified in its
charter)</P>

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    <TD STYLE="width: 38%; font: 10pt Times New Roman, Times, Serif; text-align: center">Colorado<BR> (State or other jurisdiction of<BR> incorporation or organization)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">001-32978<BR> (Commission<BR> File Number)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">84-1285791<BR> (I.R.S. Employer<BR> Identification No.)</TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0"><FONT STYLE="font-size: 10pt">4251
Kipling Street, Suite 390<BR>
Wheat Ridge, CO 80033<BR>
(Address of principal executive offices) </FONT></P>

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    <TD STYLE="width: 65%; font: 10pt Times New Roman, Times, Serif">Registrant&rsquo;s telephone number, including area code:</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">(303) 534-1030</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0">Not Applicable<BR>
(Former name or former address, if changed since last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

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    <TD STYLE="width: 2%; font: 10pt Wingdings">o</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Written communications pursuant to Rule&nbsp;425 under the Securities Act (17&nbsp;CFR 230.425)</TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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    <TD STYLE="font: 10pt Wingdings">o</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17&nbsp;CFR 240.14a-12)</TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17&nbsp;CFR&nbsp;240.14d-2(b))</TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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    <TD STYLE="font: 10pt Wingdings">o</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17&nbsp;CFR&nbsp;240.13e-4(c))</TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <TD STYLE="width: 13%; font: bold 10pt Times New Roman, Times, Serif">ITEM 1.01</TD>
    <TD STYLE="width: 87%; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 12pt">Entry into a Material Definitive Agreement</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal"><U>Purchase
        of Solitario Stock</U></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">On June 26,
        2012, </FONT>each of Christopher Herald, President and Chief Executive Officer of Solitario Exploration and Royalty Corp. (&ldquo;Solitario&rdquo;
        or the &ldquo;Company&rdquo;) and James Maronick, Solitario&rsquo;s Chief Financial Officer, agreed to purchase shares of the Company&rsquo;s
        common stock, with Mr. Herald agreeing to purchase 180,000 shares and Mr. Maronick agreeing to purchase 45,000 shares (the shares
        to be purchased by Mr. Herald and Mr. Maronick are collectively referred as the &ldquo;Shares&rdquo;, and the offer and sale of
        the Shares is referred to herein as the &ldquo;Offering&rdquo;);</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Offering was unanimously approved by Solitario&rsquo;s
        Board of Directors and was also unanimously approved by Solitario&rsquo;s Audit Committee of the Board of Directors.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Each of Mr. Herald and Mr. Maronick has executed
        a subscription agreement for the purchase of 180,000 shares and 45,000 shares, respectively, of the Company&rsquo;s common shares
        at a price of $1.22 per share and has delivered the consideration of $219,600 and $54,900, respectively, to Solitario. The closing
        of the Offering was subject to the filing of additional listing applications to the NYSE MKT (formerly the NYSE Amex) and the Toronto
        Stock Exchange (the &ldquo;<U>Exchanges</U>&rdquo;), and to all necessary approvals of the Exchanges. All necessary approvals of
        the Exchanges were obtained and the Offering closed on June 29, 2012.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Each of the Subscription Agreements of Mr.
        Herald and Mr. Maronick is filed herewith as Exhibit 99.1 and 99.2, respectively. These exhibits are incorporated into this Item
        1.01 by reference.&nbsp; The foregoing description of this transaction by the Company and the documentation related thereto does
        not purport to be complete and is qualified in its entirety by reference to such Exhibits.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Modification of Mt. Hamilton Operating Agreement
        </U></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 28, 2012, Solitario and DHI Minerals
        (US), Ltd. (&ldquo;DHI&rdquo;), a wholly owned subsidiary of Ely Gold and Minerals Inc. (&ldquo;Ely&rdquo;) agreed to modify the
        terms (the &ldquo;Amendment&rdquo;) of the Mt. Hamilton LLC Operating Agreement (the &ldquo;Operating Agreement&rdquo;), whereby
        certain continuing payment obligations of Solitario pursuant to the Operating Agreement totaling $5,000,000 to buy down the production
        royalty payable to Centennial Minerals Company LLC (&ldquo;CMC&rdquo;) will now be payable on or prior to the date of commencement
        of commercial production, as defined in the Mining Lease Agreement between CMC and Diamond Hill Investment Corp. (predecessor-in-interest
        to Mt. Hamilton LLC, (&ldquo;MH-LLC&rdquo;)) dated November&nbsp;19, 2004, amended by that First Amending Agreement between CMC
        and DHI dated April&nbsp;20, 2005, further amended by that Royalty Reduction Agreement among CMC, DHI and Ely, dated February&nbsp;27,
        2010, further amended by that Amendment of Lease Agreement and Royalty Reduction Agreement among CMC, DHI and Ely dated April&nbsp;28,
        2010, and further amended by that Fourth Amendment to Mining Lease dated May 27, 2011 (collectively, the &ldquo;Centennial Lease&rdquo;).
        Previously, the Operating Agreement obligated Solitario to make the continuing payment obligations to CMC of $3,500,000 on or before
        November 13, 2012 and $1,500,000 on or before November 13, 2014. The Amendment became effective on June 29, 2012 upon receipt of
        written consent to the Amendment of Sandstorm Gold Ltd. (&ldquo;Sandstorm&rdquo;), pursuant to the terms and conditions of that
        Net Smelter Returns Royalty Agreement dated June 11, 2012, among Sandstorm, MH-LLC and Solitario.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Amendment is filed herewith as Exhibit
        99.3. This exhibit is incorporated into this Item 1.01 by reference.&nbsp; The foregoing description of this transaction by the
        Company and the documentation related thereto does not purport to be complete and is qualified in its entirety by reference to
        such Exhibit.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Repayment of loan by DHI and distribution
        by MH-LLC</U></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to a Purchase Agreement dated May&nbsp;17,
        2011 (the &ldquo;Royalty Buy-Down Agreement&rdquo;), MH-LLC bought down two percentage points of the production royalty (the &ldquo;Royalty
        Buy-Down&rdquo;) payable to CMC under that Centennial Lease. The purchase price paid to CMC for the Royalty Buy-Down was $2,520,000
        (the &ldquo;Purchase Price&rdquo;). Pursuant to a May&nbsp;17, 2011 letter agreement (the &ldquo;May 2011 Letter Agreement&rdquo;),
        DHI agreed to contribute twenty percent (20%) of the Purchase Price ($504,000) to MH-LLC, as a portion of the payment by MH-LLC
        of the Purchase Price under the Purchase Agreement. In the May 2011 Letter Agreement, DHI and Solitario agreed that Solitario would
        be deemed to have loaned DHI&rsquo;s share of the Purchase Price, $504,000, to DHI, such amount bearing interest at a rate of six&nbsp;percent
        (6%) per annum until fully repaid (the entire amount of principal and interest<BR>
 referred to collectively as the &ldquo;Loan Amount&rdquo;).
        The parties agreed that the Loan Amount would be repaid to Solitario exclusively from eighty percent (80%) of DHI&rsquo;s share
        of distributions from MH-LLC, in the manner set forth in Section 3.2(c)(v) of the Operating Agreement.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to a June 28, 2012 letter agreement
        (the &ldquo;June 2012 Letter Agreement&rdquo;) Solitario and DHI agreed that MH-LLC would make a distribution of $2,500,000 to
        its members, Solitario and DHI, and to modify the terms of the May 2011 Letter Agreement so that DHI&rsquo;s portion of that distribution
        (which is $500,000, the &ldquo;Repayment Amount&rdquo;) would be paid directly by MH-LLC to Solitario and would constitute a pay
        down of $500,000 of the principal of the Loan Amount. In addition, Solitario agreed to forgive (a) the entire amount of the accrued
        interest on the Loan Amount through June 30, 2012 and (b) all interest accrued on DHI&rsquo;s share of post-Bankable Feasibility
        Study Company expenditures paid by Solitario on DHI&rsquo;s behalf (as described in Section 3.2(c)(v) of the Operating Agreement)
        between February 22, 2012 and June 30, 2012. Solitario plans to use the proceeds of this distribution to make future continuing
        payment obligations to maintain its interest in MH-LLC and the Mt. Hamilton property and for general corporate purposes.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The June 2012 Letter Agreement is filed herewith
        as Exhibit 99.4. This exhibit is incorporated into this Item 1.01 by reference.&nbsp; The foregoing description of this transaction
        by the Company and the documentation related thereto does not purport to be complete and is qualified in its entirety by reference
        to such Exhibit.</P></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; text-indent: 4.5pt; margin-right: 0; margin-left: 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; text-indent: 4.5pt; margin-right: 0; margin-left: 0"><B>&nbsp;</B></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; font-weight: bold">ITEM 3.02</TD>
    <TD STYLE="width: 86%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; font-weight: bold">Unregistered Sales of Securities</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Offering is being made pursuant to the
        exemption from registration set forth in Section 4(2) of the Securities Exchange Act of 1934 because Solitario: (i) did not engage
        in any public advertising or general solicitation in connection with the Offering; (ii) believed each investor understood the risks
        of acquiring the Shares for investment purposes; and (iii) believed that each investor is acquiring the Shares for investment purposes.
        Solitario has agreed to sell the Shares to each of Messrs. Herald and Maronick at $1.22 per share which represents the last closing
        sale price of the Company&rsquo;s common stock on the NYSE MKT (formerly the NYSE Amex) on June 25, 2012 for aggregate consideration
        to Solitario of $274,500. The Offering was not underwritten by a broker and there were no underwriter discounts or commissions.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The proceeds of the Offering will provide the
        Company additional working capital for general corporate purposes.</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B>&nbsp;</B></P>

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    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">ITEM 9.01</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">FINANCIAL STATEMENTS AND EXHIBITS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline">Exhibits</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline">Exhibit Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">99.1</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Subscription Agreement dated June 26, 2012 between Solitario and Mr. Christopher Herald.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">99.2</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Subscription Agreement dated June 26, 2012 between Solitario and Mr. James Maronick.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">99.3</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Amendment of the Mt. Hamilton LLC Operating Agreement dated June 28, 2012 between Solitario and DHI Minerals (US), Ltd.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">99.4</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Letter Agreement dated June 28, 2012 between Solitario and DHI Minerals (US), Ltd.</TD></TR>
<TR>
    <TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 6%">&nbsp;</TD>
    <TD STYLE="width: 84%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B>&nbsp;</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">July 2, 2012</P>

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    <TD STYLE="width: 7%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 92%; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif">Solitario Exploration &amp; Royalty Corp.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">By:</TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif; text-decoration: underline">/s/&nbsp;James R. Maronick</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">James R. Maronick, Chief Financial Officer</TD></TR>
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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>EXHIBIT 99.1</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SUBSCRIPTION AGREEMENT</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FOR</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SOLITARIO EXPLORATION &amp; ROYALTY CORP.
</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">June 26, 2012</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; color: #0B0000"><B>Solitario Exploration &amp; Royalty Corp.<BR>
</B>4251 Kipling Street, Suite 390</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; color: #0B0000">Wheat Ridge, Colorado 80033</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Ladies and Gentlemen:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">1.&#9;<B>Subscription.</B>
The undersigned (the &ldquo;<B><U>Purchaser</U></B>&rdquo;) will purchase 180,000 shares of the Company&rsquo;s common stock (the
&ldquo;<B><U>Shares</U></B>&rdquo;) at a price per share of $1.22 for a total purchase price of $219,600 </FONT>(the &ldquo;<B><U>Offering</U></B>&rdquo;).<FONT STYLE="color: black">
</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">The
Shares will be sold at the closing of the Offering which shall occur immediately upon the approval within of the Company&rsquo;s
request for the additional listing of the Shares issued in connection with the Offering on both the Toronto Stock Exchange and
the NYSE MKT (formerly known as the NYSE Amex) </FONT>(collectively the &ldquo;<B><U>Exchanges</U></B>&rdquo;)<FONT STYLE="color: black">.
The subscription for the Shares will be made in accordance with and subject to the terms and conditions of the Subscription Agreement.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">2.<B>&#9;Acceptance
of Subscription.</B> The Purchaser understands and agrees that the Company, in its sole discretion, reserves the right to accept
this subscription for the Shares, in whole or in part, notwithstanding prior receipt by the Purchaser of notice of acceptance of
this or any other subscription. The Company will have no obligation hereunder until the Company executes and delivers to the Purchaser
an executed copy of the Subscription Agreement. If Purchaser&rsquo;s subscription is rejected in whole (at the sole discretion
of the Company) this Subscription Agreement will thereafter be of no further force or effect. If Purchaser&rsquo;s subscription
is rejected in part (at the sole discretion of the Company) and the Company accepts the portion not so rejected this Subscription
Agreement will continue in full force and effect to the extent such subscription was accepted.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">3.<B>&#9;Representations
and Warranties of the Purchaser.</B> The Purchaser hereby acknowledges, represents, warrants, and agrees as follows:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(a)&#9;The Shares
are not registered under the Securities Act of 1933, as amended (the &ldquo;<B><U>Securities Act</U></B>&rdquo;) or any state securities
laws. The Purchaser understands that the offer and sale of the Securities is intended to be exempt from registration under the
Securities Act, by virtue of Section 4(2) thereof in part, upon the representations, warranties and agreements of the Purchaser
contained in this Subscription Agreement;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(b)&#9;The Purchaser,
either alone or together with its Advisors, if any, has such knowledge and experience in financial, tax, and business matters,
and, in particular, investments in securities, so as to enable him to evaluate the merits and risks of an investment in the Shares
and the Company and to make an informed investment decision with respect thereto;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(c)&#9;The
Purchaser is acquiring the Shares solely for such Purchaser&rsquo;s own account for investment and not with a view to resale or
distribution thereof, in whole or in part. The Purchaser has no </FONT>agreement<FONT STYLE="color: black"> or arrangement, formal
or informal, with any person to sell or transfer all or any part of any of the Shares and the Purchaser has no plans to enter into
any such agreement or arrangement;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(d)&#9;</FONT>The
Purchaser understands and agrees that purchase of the Shares is a high risk investment and the Purchaser is able to afford an investment
in a speculative venture having the risks and objectives of the Company. The Purchaser must bear the substantial economic risks
of the investment in the Shares indefinitely because the Shares may not be sold, hypothecated or otherwise disposed of unless subsequently
registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. Legends
will be placed on the certificates representing the Shares to the effect that such securities have not been registered under the
Securities Act or applicable state securities laws and appropriate notations thereof will be made in the Company&rsquo;s books.
The Offering and the Shares have not been registered or qualified under the applicable securities laws and rules of Canada or the
Exchanges. Furthermore, the Shares will include legends in substantially the following forms:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 38.15pt 0 37.45pt; text-align: justify">THE SECURITIES EVIDENCED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR APPLICABLE STATE SECURITIES LAWS,
AND NO INTEREST MAY BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS (A) THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT AND APPLIABLE STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITES
(B) THE COMPANY RECEIVES AN OPINION OF LEGAL COUNSEL FOR THE HOLDER THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION OR (C) THE
COMPANY OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 38.15pt 0 37.45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 38.15pt 0 37.45pt; text-align: justify">UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY IN CANADA BEFORE [INSERT DATE THAT IS FOUR (4) MOUNTHS AND
ONE (1) DAY AFTER THE DATE OF ISSUE]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 38.15pt 0 37.45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 37.9pt 6pt 37.4pt; text-align: justify">THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE LISTED ON THE TORONTO STOCK EXCHANGE (&ldquo;TSX&rdquo;); HOWEVER, THE SAID SECURITIES CANNOT BE TRADED
THROUGH THE FACILITIES OF THE TSX SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY AND CERTIFICATE REPRESENTING SUCH SECURITIES
IS NOT &lsquo;GOOD DELIVERY&rsquo; IN SETTLEMENT OF TRANSACTIONS ON THE TSX.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 1in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(e)&#9;The Purchaser
has adequate means of providing for such Purchaser&rsquo;s current financial needs and foreseeable contingencies and has no need
for liquidity from its investment in the Shares for an indefinite period of time. The Purchaser has a sufficient net worth to sustain
a loss of the entire investment in the event such loss should occur;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(f)&#9;The
Purchaser represents to the Company that any information which the undersigned has </FONT>heretofore<FONT STYLE="color: black">
furnished or is furnishing herewith to the Company is complete and accurate and may be relied upon by the Company in determining
the availability of an exemption from registration under Federal and state securities laws in connection with the offering of securities
as described in the Transaction Documents; and</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(g)&#9;The
</FONT>Purchaser<FONT STYLE="color: black"> acknowledges that the Shares have not been recommended by any federal, state or provincial
securities commission or regulatory authority. In making an investment decision, investors must rely on their own examination of
the Company and the terms of the Offering, including the merits and risks involved. Furthermore, the foregoing authorities have
not confirmed the<BR>
 </FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black"><BR>
accuracy or determined the adequacy of this Subscription Agreement or the other Transaction Documents. Any representation
to the contrary is a criminal offense. The Securities are subject to restrictions on transferability and resale and may not be
transferred or resold except as permitted under the Securities Act, and the applicable state securities laws, pursuant to registration
or exemption therefrom. Investors should be aware that they will be required to bear the financial risks of this investment for
an indefinite period of time.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">4.&#9;<B>Indemnification.</B>
The Purchaser agrees to indemnify and hold harmless the Company and its officers, directors, managers, employees, agents, attorneys,
control persons and affiliates from and against all losses, liabilities, claims, damages, costs, fees and expenses whatsoever (including,
but not limited to, any and all expenses incurred in investigating, preparing or defending against any litigation commenced or
threatened) based upon or arising out of any actual or alleged false acknowledgment, representation or warranty, or misrepresentation
or omission to state a material fact, or breach by the Purchaser of any covenant or agreement made by the Purchaser herein or in
any other document delivered in connection with this Subscription Agreement.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">5.<B>&#9;Irrevocability;
Binding Effect.</B> The Purchaser hereby acknowledges and agrees that the subscription hereunder is irrevocable by the Purchaser,
except as required by applicable law, and that this Subscription Agreement will survive the death or disability of the Purchaser
and will be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal
representatives, and permitted assigns.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">6.<B>&#9;Modification.</B>
This Subscription Agreement will not be modified or waived except by an instrument in writing signed by the party against whom
any such modification or waiver is sought.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">7.<B>&#9;Assignability.</B>
This Subscription Agreement and the rights, interests and obligations hereunder are not transferable or assignable by the Purchaser
and the transfer or assignment of any of the Securities will be made only in accordance with all applicable laws.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">8.&#9;<B>Applicable
Law.</B> This Subscription Agreement will be governed by and construed under the laws of the State of Colorado as applied to agreements
among Colorado residents entered into and to be performed entirely within Colorado. Each of the parties hereto (1) agree that any
legal suit, action or proceeding arising out of or relating to this Subscription Agreement will be instituted exclusively in the
</FONT>courts of the City and County of Denver, State of Colorado, or, if it has or can acquire jurisdiction, in the United States
District Court for the District of Colorado,<FONT STYLE="color: black"> (2) waive any objection which the parties may have now
or hereafter to the venue of any such suit, action or proceeding, and (3) irrevocably consent to the jurisdiction of the </FONT>courts
of the City and County of Denver, State of Colorado, <FONT STYLE="color: black">the United States District Court for the District
of Colorado and the appropriate appellate courts in any such suit, action or proceeding. THE PARTIES HERETO AGREE TO WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS SUBSCRIPTION AGREEMENT OR ANY
DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">9.&#9;<B>Blue Sky
Qualification.</B> The purchase of Securities pursuant to this Subscription Agreement is expressly conditioned upon the exemption
from qualification of the offer and sale of the Securities from applicable federal and state securities laws.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">10.&#9;</FONT>&nbsp;&nbsp;&nbsp;<B>Conditions
to Closing</B>.&#9;&nbsp;The Company&rsquo;s obligation to issue and sell the Shares to the Purchaser and the Purchaser&rsquo;s
obligation to purchase the Shares from the Company shall be conditioned on the Company obtaining listing approval for the Shares
on both of the Exchanges, subject <BR>
</P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><BR>
only to the customary post-closing conditions imposed by such Exchanges in similar circumstances
(if any).</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">11.<B>&#9;Miscellaneous.</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(a)&#9;This
Subscription Agreement, constitutes </FONT>the<FONT STYLE="color: black"> entire agreement between the Purchaser and the Company
with respect to the subject matter hereof and supersede all prior oral or written agreements and understandings, if any, relating
to the subject matter hereof. The terms and provisions of this Subscription Agreement may be waived, or consent for the departure
therefrom granted, only by a written document executed by the party entitled to the benefits of such terms or provisions.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(b)&#9;Each of the
Purchaser&rsquo;s representations and warranties made in this Subscription Agreement will survive the execution and delivery hereof
and delivery of the Securities.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(c)&#9;Each of the
parties hereto will pay its own fees and expenses (including the fees of any attorneys, accountants, appraisers or others engaged
by such party) in connection with this Subscription Agreement and the transactions contemplated hereby whether or not the transactions
contemplated hereby are consummated.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(d)&#9;This
</FONT>Subscription<FONT STYLE="color: black"> Agreement may be executed in one or more counterparts each of which will be deemed
an original, but all of which will together constitute one and the same instrument.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(e)&#9;Each
</FONT>provision<FONT STYLE="color: black"> of this Subscription Agreement will be considered separable and, if for any reason
any provision or provisions hereof are determined to be invalid or contrary to applicable law, such invalidity or illegality will
not impair the operation of or affect the remaining portions of this Subscription Agreement.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(f)&#9;Paragraph
titles are for descriptive purposes only and will not control or alter the meaning </FONT>of<FONT STYLE="color: black"> this Subscription
Agreement as set forth in the text.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in">* * * * *</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 37.4pt"><B>&#9;IN WITNESS WHEREOF,</B>
the undersigned have caused this Subscription Agreement to be executed as of the date set forth above.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>PURCHASER:</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><U>/s/
Christopher E. Herald</U></FONT><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">Christopher E. Herald</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>AGREED AND ACCEPTED:</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>SOLITARIO EXPLORATION AND ROYALTY CORP. </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">By:<U>/s/ James R. Maronick&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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;<U>June
26, 2012&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</FONT>
CFO</P>



<P STYLE="margin: 0"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>EXHIBIT 99.2</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SUBSCRIPTION AGREEMENT</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FOR</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SOLITARIO EXPLORATION &amp; ROYALTY CORP.
</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>June 26, 2012</B></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; color: #0B0000"><B>Solitario Exploration &amp; Royalty Corp.<BR>
</B>4251 Kipling Street, Suite 390</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; color: #0B0000">Wheat Ridge, Colorado 80033</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Ladies and Gentlemen:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">1.&#9;<B>Subscription.</B>
The undersigned (the &ldquo;<B><U>Purchaser</U></B>&rdquo;) will purchase 45,000 shares of the Company&rsquo;s common stock (the
&ldquo;<B><U>Shares</U></B>&rdquo;) at a price per share of $1.22 for a total purchase price of $54,900 </FONT>(the &ldquo;<B><U>Offering</U></B>&rdquo;).<FONT STYLE="color: black">
</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">The
Shares will be sold at the closing of the Offering which shall occur immediately upon the approval within of the Company&rsquo;s
request for the additional listing of the Shares issued in connection with the Offering on both the Toronto Stock Exchange and
the NYSE MKT (formerly known as the NYSE Amex) </FONT>(collectively the &ldquo;<B><U>Exchanges</U></B>&rdquo;)<FONT STYLE="color: black">.
The subscription for the Shares will be made in accordance with and subject to the terms and conditions of the Subscription Agreement.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">2.<B>&#9;Acceptance
of Subscription.</B> The Purchaser understands and agrees that the Company, in its sole discretion, reserves the right to accept
this subscription for the Shares, in whole or in part, notwithstanding prior receipt by the Purchaser of notice of acceptance of
this or any other subscription. The Company will have no obligation hereunder until the Company executes and delivers to the Purchaser
an executed copy of the Subscription Agreement. If Purchaser&rsquo;s subscription is rejected in whole (at the sole discretion
of the Company) this Subscription Agreement will thereafter be of no further force or effect. If Purchaser&rsquo;s subscription
is rejected in part (at the sole discretion of the Company) and the Company accepts the portion not so rejected this Subscription
Agreement will continue in full force and effect to the extent such subscription was accepted.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">3.<B>&#9;Representations
and Warranties of the Purchaser.</B> The Purchaser hereby acknowledges, represents, warrants, and agrees as follows:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(a)&#9;The Shares
are not registered under the Securities Act of 1933, as amended (the &ldquo;<B><U>Securities Act</U></B>&rdquo;) or any state securities
laws. The Purchaser understands that the offer and sale of the Securities is intended to be exempt from registration under the
Securities Act, by virtue of Section 4(2) thereof in part, upon the representations, warranties and agreements of the Purchaser
contained in this Subscription Agreement;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(b)&#9;The Purchaser,
either alone or together with his Advisors, if any, has such knowledge and experience in financial, tax, and business matters,
and, in particular, investments in securities, so as to enable him to evaluate the merits and risks of an investment in the Shares
and the Company and to make an informed investment decision with respect thereto;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(c)&#9;The
Purchaser is acquiring the Shares solely for such Purchaser&rsquo;s own account for investment and not with a view to resale or
distribution thereof, in whole or in part. The Purchaser has no </FONT>agreement<FONT STYLE="color: black"> or arrangement, formal
or informal, with any person to sell or transfer all or any part of any of the Shares and the Purchaser has no plans to enter into
any such agreement or arrangement;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(d)&#9;</FONT>The
Purchaser understands and agrees that purchase of the Shares is a high risk investment and the Purchaser is able to afford an investment
in a speculative venture having the risks and objectives of the Company. The Purchaser must bear the substantial economic risks
of the investment in the Shares indefinitely because the Shares may not be sold, hypothecated or otherwise disposed of unless subsequently
registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. Legends
will be placed on the certificates representing the Shares to the effect that such securities have not been registered under the
Securities Act or applicable state securities laws and appropriate notations thereof will be made in the Company&rsquo;s books.
The Offering and the Shares have not been registered or qualified under the applicable securities laws and rules of Canada or the
Exchanges. Furthermore, the Shares will include legends in substantially the following forms:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 38.15pt 0 37.45pt; text-align: justify">THE SECURITIES EVIDENCED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR APPLICABLE STATE SECURITIES LAWS,
AND NO INTEREST MAY BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS (A) THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT AND APPLIABLE STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITES
(B) THE COMPANY RECEIVES AN OPINION OF LEGAL COUNSEL FOR THE HOLDER THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION OR (C) THE
COMPANY OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 38.15pt 0 37.45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 38.15pt 0 37.45pt; text-align: justify">UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY IN CANADA BEFORE [INSERT DATE THAT IS FOUR (4) MOUNTHS AND
ONE (1) DAY AFTER THE DATE OF ISSUE]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 38.15pt 0 37.45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 37.9pt 6pt 37.4pt; text-align: justify">THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE LISTED ON THE TORONTO STOCK EXCHANGE (&ldquo;TSX&rdquo;); HOWEVER, THE SAID SECURITIES CANNOT BE TRADED
THROUGH THE FACILITIES OF THE TSX SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY AND CERTIFICATE REPRESENTING SUCH SECURITIES
IS NOT &lsquo;GOOD DELIVERY&rsquo; IN SETTLEMENT OF TRANSACTIONS ON THE TSX.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(e)&#9;The Purchaser
has adequate means of providing for such Purchaser&rsquo;s current financial needs and foreseeable contingencies and has no need
for liquidity from its investment in the Shares for an indefinite period of time. The Purchaser has a sufficient net worth to sustain
a loss of the entire investment in the event such loss should occur;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(f)&#9;The
Purchaser represents to the Company that any information which the undersigned has </FONT>heretofore<FONT STYLE="color: black">
furnished or is furnishing herewith to the Company is complete and accurate and may be relied upon by the Company in determining
the availability of an exemption from registration under Federal and state securities laws in connection with the offering of securities
as described in the Transaction Documents; and</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(g)&#9;The
</FONT>Purchaser<FONT STYLE="color: black"> acknowledges that the Shares have not been recommended by any federal, state or provincial
securities commission or regulatory authority. In making an investment decision, investors must rely on their own examination of
the Company and the terms of the Offering, including the merits and risks involved. Furthermore, the foregoing authorities have
not confirmed the accuracy or determined the adequacy of this Subscription Agreement or the other Transaction Documents. <BR>
</FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black"><BR>
Any representation
to the contrary is a criminal offense. The Securities are subject to restrictions on transferability and resale and may not be
transferred or resold except as permitted under the Securities Act, and the applicable state securities laws, pursuant to registration
or exemption therefrom. Investors should be aware that they will be required to bear the financial risks of this investment for
an indefinite period of time.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">4.&#9;<B>Indemnification.</B>
The Purchaser agrees to indemnify and hold harmless the Company and its officers, directors, managers, employees, agents, attorneys,
control persons and affiliates from and against all losses, liabilities, claims, damages, costs, fees and expenses whatsoever (including,
but not limited to, any and all expenses incurred in investigating, preparing or defending against any litigation commenced or
threatened) based upon or arising out of any actual or alleged false acknowledgment, representation or warranty, or misrepresentation
or omission to state a material fact, or breach by the Purchaser of any covenant or agreement made by the Purchaser herein or in
any other document delivered in connection with this Subscription Agreement.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">5.<B>&#9;Irrevocability;
Binding Effect.</B> The Purchaser hereby acknowledges and agrees that the subscription hereunder is irrevocable by the Purchaser,
except as required by applicable law, and that this Subscription Agreement will survive the death or disability of the Purchaser
and will be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal
representatives, and permitted assigns.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">6.<B>&#9;Modification.</B>
This Subscription Agreement will not be modified or waived except by an instrument in writing signed by the party against whom
any such modification or waiver is sought.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">7.<B>&#9;Assignability.</B>
This Subscription Agreement and the rights, interests and obligations hereunder are not transferable or assignable by the Purchaser
and the transfer or assignment of any of the Securities will be made only in accordance with all applicable laws.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">8.&#9;<B>Applicable
Law.</B> This Subscription Agreement will be governed by and construed under the laws of the State of Colorado as applied to agreements
among Colorado residents entered into and to be performed entirely within Colorado. Each of the parties hereto (1) agree that any
legal suit, action or proceeding arising out of or relating to this Subscription Agreement will be instituted exclusively in the
</FONT>courts of the City and County of Denver, State of Colorado, or, if it has or can acquire jurisdiction, in the United States
District Court for the District of Colorado,<FONT STYLE="color: black"> (2) waive any objection which the parties may have now
or hereafter to the venue of any such suit, action or proceeding, and (3) irrevocably consent to the jurisdiction of the </FONT>courts
of the City and County of Denver, State of Colorado, <FONT STYLE="color: black">the United States District Court for the District
of Colorado and the appropriate appellate courts in any such suit, action or proceeding. THE PARTIES HERETO AGREE TO WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS SUBSCRIPTION AGREEMENT OR ANY
DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">9.&#9;<B>Blue Sky
Qualification.</B> The purchase of Securities pursuant to this Subscription Agreement is expressly conditioned upon the exemption
from qualification of the offer and sale of the Securities from applicable federal and state securities laws.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">10.&#9;</FONT>&nbsp;&nbsp;&nbsp;<B>Conditions
to Closing</B>.&#9;&nbsp;The Company&rsquo;s obligation to issue and sell the Shares to the Purchaser and the Purchaser&rsquo;s
obligation to purchase the Shares from the Company shall be conditioned on the Company obtaining listing approval for the Shares
on both of the Exchanges, subject only to the customary post-closing conditions imposed by such Exchanges in similar circumstances
(if any).</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">11.<B>&#9;Miscellaneous.</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(a)&#9;This
Subscription Agreement, constitutes </FONT>the<FONT STYLE="color: black"> entire agreement between the Purchaser and the Company
with respect to the subject matter hereof and supersede all prior oral or written agreements and understandings, if any, relating
to the subject matter hereof. The terms and provisions of this Subscription Agreement may be waived, or consent for the departure
therefrom granted, only by a written document executed by the party entitled to the benefits of such terms or provisions.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(b)&#9;Each of the
Purchaser&rsquo;s representations and warranties made in this Subscription Agreement will survive the execution and delivery hereof
and delivery of the Securities.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(c)&#9;Each of the
parties hereto will pay its own fees and expenses (including the fees of any attorneys, accountants, appraisers or others engaged
by such party) in connection with this Subscription Agreement and the transactions contemplated hereby whether or not the transactions
contemplated hereby are consummated.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(d)&#9;This
</FONT>Subscription<FONT STYLE="color: black"> Agreement may be executed in one or more counterparts each of which will be deemed
an original, but all of which will together constitute one and the same instrument.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(e)&#9;Each
</FONT>provision<FONT STYLE="color: black"> of this Subscription Agreement will be considered separable and, if for any reason
any provision or provisions hereof are determined to be invalid or contrary to applicable law, such invalidity or illegality will
not impair the operation of or affect the remaining portions of this Subscription Agreement.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="color: black">(f)&#9;Paragraph
titles are for descriptive purposes only and will not control or alter the meaning </FONT>of<FONT STYLE="color: black"> this Subscription
Agreement as set forth in the text.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in">* * * * *</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 37.4pt"><B>&#9;IN WITNESS WHEREOF,</B>
the undersigned have caused this Subscription Agreement to be executed as of the date set forth above.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>PURCHASER:</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><U>/s/ James Maronick&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">James Maronick</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>AGREED AND ACCEPTED:</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>SOLITARIO EXPLORATION AND ROYALTY CORP. </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">By<U>/s/ Christopher E. Herald&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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;<U>June
26, 2012&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:<FONT STYLE="font-family: Century Gothic,sans-serif">
</FONT>President &amp; CEO<FONT STYLE="font-family: Century Gothic,sans-serif"> </FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: right"><U>EXHIBIT 99.3</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><U>AMENDMENT TO LLC OPERATING AGREEMENT</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">THIS AMENDMENT (the
&ldquo;Amendment&rdquo;) to the Limited Liability Company Operating Agreement of Mt.&nbsp;Hamilton LLC is executed on June&nbsp;28,
2012, but effective as of the date of fulfillment of the condition precedent described in paragraph 3 below, between its Members,
DHI Minerals (U.S.) Ltd., a Nevada corporation (&ldquo;DHI&rdquo;), and Solitario Exploration&nbsp;&amp; Royalty Corp., a Colorado
corporation (&ldquo;Solitario&rdquo;)</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><U>RECITALS</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">A.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>DHI and Solitario are the Members of Mt.&nbsp;Hamilton LLC, a Colorado limited liability company, and parties to the Limited
Liability Company Operating Agreement of Mt.&nbsp;Hamilton LLC, as amended by (i) that March 11, 2011 Letter Agreement between
DHI and Solitario, (ii)&nbsp;that May&nbsp;17, 2011 Letter Agreement between DHI and Solitario, (iii)&nbsp;that Letter Agreement
between DHI and Solitario of even date herewith (collectively, the &ldquo;Operating Agreement&rdquo;). <B> </B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">B.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Pursuant to the Operating Agreement, Solitario has the obligation, subject to the terms and conditions of the Operating
Agreement, to fulfill certain Continuing Payment Obligations as defined therein. Among those Continuing Payment Obligations are
payments to be made to buy down the production royalty payable to Centennial Minerals Company LLC (&ldquo;CMC&rdquo;) under that
Mining Lease Agreement between CMC and Diamond Hill Investment Corp. (predecessor-in-interest to MH LLC) dated November&nbsp;19,
2004, amended by that First Amending Agreement between CMC and DHI US dated April&nbsp;20, 2005, further amended by that Royalty
Reduction Agreement among CMC, DHI US and Ely Gold&nbsp;&amp; Minerals Inc. (&ldquo;Ely&rdquo;), dated February&nbsp;27, 2010,
further amended by that Amendment of Lease Agreement and Royalty Reduction Agreement among CMC, DHI US and Ely dated April&nbsp;28,
2010, and further amended by that Fourth Amendment to Mining Lease between CMC and MH LLC dated May 27, 2011, (collectively, the
&ldquo;Centennial Lease&rdquo;).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">C.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>DHI and Solitario now desire to modify certain of those Continuing Payment Obligations pertaining to the Centennial Lease,
as set forth in this Amendment.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><U>AGREEMENT</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confirmed, the parties agree
as follows:</P>

<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">1.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Section&nbsp;3.2(c)(iii) of the Operating Agreement is revised to read as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 1in 12pt; text-align: justify; text-indent: 0.5in">(iii)&#9;<U>Phase&nbsp;III
Earn-in</U>. Following completion of Phase&nbsp;II Earn-in, Solitario may elect, in its sole discretion, to earn an additional
Interest (the &ldquo;<B><U>Phase&nbsp;III Interest</U></B>&rdquo;) by making the following payments. On or before November 19,
2013, Solitario shall contribute $300,000 to the Company and cause the Company to pay, or in lieu thereof shall pay such amount
directly to, Centennial in satisfaction of the $300,000 payment due Centennial on or before such date pursuant to the Centennial
Lease. On or prior to the date of commencement of commercial production, as defined in the Centennial Lease, Solitario shall contribute
an aggregate of $5,000,000, in three separate payments, to the Company and cause the Company to pay, or in lieu thereof shall pay
directly to Centennial, the $2,000,000 first royalty reduction option payment, the $1,500,000 second royalty reduction option payment,
and the $1,500,000 third royalty reduction option payment, each as described in the Centennial Lease. On or before November&nbsp;19,
2014, Solitario shall contribute $300,000 to the Company and cause the Company to pay, or in lieu thereof shall pay such amount
directly to, <BR>
</P>

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Centennial in satisfaction of the $300,000 payment due Centennial on or before such date. The payments referred to
in the three previous sentences are collectively referred to as the &ldquo;<B><U>Phase&nbsp;III Centennial Payments</U></B>.&rdquo;
Solitario shall make the following payments to DHI US (the &ldquo;<B><U>Phase&nbsp;III DHI US Payments</U></B>&rdquo;): (1)&nbsp;on
or before February&nbsp;23, 2014, $250,000 and 50,000 shares of Solitario common stock; and (2)&nbsp;on or before August&nbsp;23,
2014, $250,000 and 50,000 shares of Solitario common stock. Upon completion of the Phase&nbsp;III Centennial Payments and the Phase&nbsp;III
DHI US Payments (collectively, the &ldquo;<B><U>Phase&nbsp;III Earn-in Payments</U></B>&rdquo;), Solitario shall have earned the
Phase&nbsp;III Interest and Solitario&rsquo;s Interest shall increase to 80% and DHI US&rsquo;s Interest shall decrease to 20%.
In the event that Solitario fails to timely make all of the Phase&nbsp;III Earn-in Payments (after receipt of notice from DHI US
and a failure to timely cure such defaults within 30 days, unless Solitario disputes the existence of such a default, in which
case that 30-day period shall not start running until after the finding of such a default by the Sole Arbitrator or the Arbitration
Panel), Solitario&rsquo;s Interest shall decrease to 49% and DHI US&rsquo;s Interest shall increase to 51%. The period from the
date of Phase&nbsp;III Earn-in until date that Solitario has earned its Phase&nbsp;III Interest is referred to as the &ldquo;<B><U>Phase&nbsp;III
Earn-in Period</U></B>.&rdquo; The increase in the Interest of Solitario upon the completion of the Phase&nbsp;III Earn-in Payments
&ldquo;<B><U>Phase&nbsp;III Earn-in</U></B>&rdquo; shall be deemed for purposes of this Agreement, including for purposes of maintaining
Capital Accounts in accordance with <U>Exhibit&nbsp;C</U>: (1)&nbsp;to the extent of the Phase&nbsp;III Centennial Payments, the
issuance to Solitario of an additional Interest in exchange for an additional Capital Contribution, and not the sale by DHI US
of any portion of its Interest; and (2)&nbsp;to the extent of the Phase&nbsp;III DHI US Payments, the sale by DHI US of a portion
of its Interest. The increase in the Interest of DHI US in the event that Solitario fails to make all of the Phase&nbsp;III Earn-in
Payments shall be deemed for such purposes <BR>
</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 1in 12pt; text-align: justify; text-indent: 0.5in"><BR>
as a relinquishment by Solitario to DHI US of a 21% Interest. The Phase&nbsp;I Earn-in
Period, the Phase&nbsp;II Earn-in Period and the Phase&nbsp;III Earn-in Period are referred to collectively as the &ldquo;<B><U>Earn-in
Period</U></B>.&rdquo;</P>

<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">2.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>As modified by this Amendment, the parties hereby confirm and agree that all of the terms and provisions of the Operating
Agreement are in full force and effect.</P>

<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">3.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>DHI and Solitario acknowledge and agree that this Amendment requires the written consent of Sandstorm Gold Ltd. (&ldquo;Sandstorm&rdquo;)
pursuant to the terms and conditions of that Net Smelter Returns Royalty Agreement dated June 11, 2012, among Sandstorm, MH LLC
and Solitario. DHI and Solitario agree that this Amendment shall not become effective until such consent is received, and that
Solitario shall promptly notify DHI upon receipt of Sandstorm&rsquo;s consent. The parties further agree that the effective date
of this Amendment shall be the date of receipt of such consent, and that if such consent is not received this Amendment shall be
of no force or effect.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the parties have executed this Amendment as of the date first set forth above, to be effective on the date described in paragraph
3 above.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">DHI Minerals (U.S.) Ltd., a Nevada
corporation</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">By:<U>/s/ Trey Wasser&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">Name:<U> Trey Wasser&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: left">Title:<U> Sec/Treas &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">Solitario Exploration&nbsp;&amp; Royalty
Corp., a Colorado corporation</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">By:<U>/s/ Christopher E. Herald&nbsp;&nbsp;&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></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">Name:<U>Christopher E. Herald&nbsp;&nbsp;&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></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">Title: <U>President &amp;
CEO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>



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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: right">EXHIBIT 99.4<BR STYLE="mso-special-character: line-break">
<BR STYLE="mso-special-character: line-break">
</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">SOLITARIO EXPLORATION &amp; ROYALTY CORP.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">June&nbsp;28, 2012</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt"><BR>
<BR>
<BR>
<BR>
Mr. Trey Wasser<BR>
DHI Minerals (U.S.) Ltd.<BR>
680-789 West Pender Street<BR>
Vancouver, B.C., Canada<BR>
V6C 1H2</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">Re:</TD><TD>Repayment of Loan for Royalty Buy-Down</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt">Dear Trey:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">This letter (the &ldquo;Letter Agreement&rdquo;)
will confirm certain agreements between Solitario Exploration &amp; Royalty Corp. (&ldquo;Solitario&rdquo;) and DHI Minerals (U.S.)
Ltd. (&ldquo;DHI US&rdquo;), as the members of Mt. Hamilton LLC, a Colorado limited liability company (&ldquo;MH LLC&rdquo;) and
representatives of the Management Committee of MH LLC (the &ldquo;Management Committee&rdquo;), concerning a distribution from
MH LLC and the subsequent repayment of a loan made by Solitario to DHI US on May&nbsp;17, 2011, to facilitate the buy-down by MH
LLC of a portion of the production royalty payable under the Mt.&nbsp;Hamilton Lease (as defined in paragraph&nbsp;1 below) and
related amendments to the December 22, 2010 Limited Liability Operating Agreement of MH LLC (as amended, the &ldquo;Operating Agreement&rdquo;).
For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confirmed, Solitario and
DHI US agree as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">1.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Pursuant to a Purchase Agreement dated May&nbsp;17, 2011 (the &ldquo;Royalty Buy-Down Agreement&rdquo;), MH LLC bought down
two percentage points of the production royalty (the &ldquo;Royalty Buy-Down&rdquo;) payable to Centennial Minerals Company LLC
(&ldquo;CMC&rdquo;) under that Mining Lease Agreement between CMC and Diamond Hill Investment Corp. (predecessor-in-interest to
MH LLC) dated November&nbsp;19, 2004, amended by that First Amending Agreement between CMC and DHI US dated April&nbsp;20, 2005,
further amended by that Royalty Reduction Agreement among CMC, DHI US and Ely Gold&nbsp;&amp; Minerals Inc. (&ldquo;Ely&rdquo;),
dated February&nbsp;27, 2010, further amended by that Amendment of Lease Agreement and Royalty Reduction Agreement among CMC, DHI
US and Ely dated April&nbsp;28, 2010, and further amended by that Fourth Amendment to Mining Lease dated May 27, 2011 (collectively,
the &ldquo;Centennial Lease&rdquo;). DHI US assigned its interest in the Centennial Lease to MH&nbsp;LLC pursuant to a Mineral
Deed and Assignment dated effective as of December&nbsp;22, 2010.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">2.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The purchase price paid to CMC for the Royalty Buy-Down was $2,520,000 (the &ldquo;Purchase Price&rdquo;), of which $1,519,999
was paid in cash, and $1,000,001 was paid by the delivery of 344,416 shares of Solitario&rsquo;s common stock to CMC, delivered
by Solitario for the <BR>
<BR>
benefit of MH LLC. Pursuant to a May&nbsp;17, 2011 letter agreement (the &ldquo;May 2011 Letter Agreement&rdquo;),
DHI US agreed to contribute twenty percent (20%) of the Purchase Price ($504,000) to MH&nbsp;LLC, as a portion of the payment by
MH LLC of the Purchase Price under the Purchase Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">3.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In the May 2011 Letter Agreement, DHI US and Solitario agreed that Solitario would be deemed to have loaned DHI US&rsquo;s
share of the Purchase Price, $504,000, to DHI US, such amount bearing interest at a rate of six&nbsp;percent (6%) per annum until
fully repaid (the entire amount of principal and interest referred to collectively as the &ldquo;Loan Amount&rdquo;). The parties
agreed that the Loan Amount would be repaid to Solitario exclusively from eighty percent (80%) of DHI US&rsquo;s share of distributions
from MH LLC, in the manner set forth in Section 3.2(c)(v) of the Operating Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">4.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Management Committee has now agreed that MH LLC will make a distribution of $2,500,000 to its members, and the Parties
hereby agree to modify the terms of the May 2011 Letter Agreement so that DHI&rsquo;s portion of that distribution (which is $500,000,
and is referred to herein as the &ldquo;Repayment Amount&rdquo;) shall be paid directly by MH LLC to Solitario and shall constitute
a pay down of $500,000 of the principal of the Loan Amount. Solitario agrees to forgive (a) the entire amount of the accrued interest
on the Loan Amount through June 30, 2012 and (b) all interest accrued on DHI&rsquo;s share of post-Bankable Feasibility Study Company
expenditures paid by Solitario on DHI&rsquo;s behalf (as described in Section 3.2(c)(v) of the Operating Agreement) between February
22, 2012 and June 30, 2012. DHI expressly waives its right to receive 20% of its share of the Repayment Amount under the May 2011
Letter Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">5.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>DHI US agrees that the repayment of the Repayment Amount to Solitario under paragraph 4 shall in no way be deemed a breach
by Solitario of Solitario&rsquo;s sole funding obligations under Section 3.2(c)(v) of the Operating Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">6.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>DHI US acknowledges and agrees that Solitario may prepare and file with the relevant U.S. and Canadian securities regulators
and stock exchanges an 8-K filing and related press release which describe the transactions set forth in this Letter Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">7.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Each of the parties represents and warrants to the other that it has the full corporate power and authority to execute and
deliver this Letter Agreement and has taken all corporate actions required in connection therewith, and that the consummation of
this Letter Agreement will not result in or constitute a default or an event that, with notice or lapse of time or both, would
be a default, breach or violation of any contract, lease, license, commitment, or any other agreement, instrument or arrangement
to which it is a party, or by which it is bound.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">8.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The parties hereby confirm and agree that, as amended by this Letter Agreement, the Operating Agreement remains in good
standing and in full force and effect.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Please confirm DHI US&rsquo;s agreement
with the foregoing by executing duplicate originals of this Letter Agreement in the space provided below and returning one fully-executed
original to me.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 3.25in">Yours very truly,</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0.5in 3.25in"><B>Solitario Exploration &amp; Royalty Corp.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0.5in 3.25in">By: <U>/s/ Christopher E. Herald&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
</U>Name: Christopher E. Herald<BR>
Title: President and Chief Executive Officer</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt">Accepted and agreed to this 28<SUP>th</SUP> day<BR>
of June, 2012</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0 0 0.5in; text-align: justify">DHI Minerals (U.S.) Ltd.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By: <U>Trey Wasser&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: Trey Wasser<BR>
Title: Secretary/Treasurer &amp; Management Committee Member</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>



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