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Employee Stock Compensation Plans

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employee Stock Compensation Plans

10. Employee Stock Compensation Plans:

On June 18, 2013, Solitario’s shareholders approved the Solitario Resources Corporation Omnibus Stock Incentive Plan (the “2013 Plan”). Under the terms of the 2013 Plan, as amended, a total of 5,750,000 shares of Solitario common stock are reserved for awards to directors, officers, employees and consultants. Awards granted under the 2013 Plan may take the form of stock options, stock appreciation rights, restricted stock, and restricted stock units. The terms and conditions of the awards are pursuant to the 2013 Plan and are granted by the Board of Directors or a committee appointed by the Board of Directors.

a.) 2013 Plan stock option grants

The following table shows the grant date fair value of Solitario’s awards during 2018 pursuant to the 2013 Plan:

Grant Date	1/02/18 (1)	11/01/18 (2)
Option – grant date price	$0.62	$0.31
Options granted	100,000	1,623,000
Expected life years	0.80	5.00
Expected volatility	66%	64%
Risk free interest rate	1.0%	3.0%
Weighted average fair value	$0.12	$0.17
Grant date fair value	$12,000	$282,000

(1)

Option granted to a consultant had an expected life of 0.8 years on grant date and was fully vested during 2018. Option remains vested for a maximum of five years from date of grant or termination of the consulting contract.

(2)

Option grants have a five-year term, and vest 25% on date of grant and 25% on each of the next three anniversary dates.

The following table shows the grant date fair value of Solitario’s awards during 2017 pursuant to the 2013 Plan:

Grant Date	7/12/17 (1)	7/12/17 (1)	7/12/17 (1)	7/12/17 (1)	9/01/17 (2)	9/01/17 (3)
Option – grant date price	$1.74	$1.52	$1.30	$0.54	$0.77	$0.77
Options granted	357,200	425,068	785,840	214,320	200,000	2,300,000
Expected life years	0.84	1.35	1.50	1.50	5.0	5.0
Expected volatility	67%	67%	67%	67%	64%	64%
Risk free interest rate	1.0%	1.0%	1.0%	1.0%	1.7%	1.7%
Weighted average fair value	$0.02	$0.08	$0.12	$0.36	$0.42	$0.42
Grant date fair value	$7,000	$26,000	$72,000	$59,000	$126,000	$970,000

(1)

Replacement Options had terms of May 15, 2018, November 15, 2018, January 12, 2019 and January 12, 2019. The Replacement Options were fully vested on the date of grant. Replacement Options were priced in Canadian Dollars, the grant day prices reflect the US Dollar price exchange rate of .07749 Cdn$/US$ on the date of grant.

(2)

Options grants have a five-year term, and vest 25% on date of grant and 25% on each of the next three anniversary dates.

(3)

Conditional Options, (defined below) approved by Solitario shareholders on June 19, 2018.

b.) Stock option activity

During 2018 and 2017 no options granted from the 2013 Plan were exercised. The following table summarizes the activity for stock options outstanding under the 2013 Plan for the years ended December 31, 2018 and 2017:

	2018			2017
		Weighted			Weighted
		Average	Aggregate		Average	Aggregate
	RSUs/	Exercise	Intrinsic	RSUs/	Exercise	Intrinsic
	Options	Price	Value (1)	Options	Price	Value (2)

Outstanding, beginning of year	1,982,428	$1.29		-	-
Granted (3)	4,023,000	$0.58		1,982,428	$1.29
Exercised	-	-		-	-
Expired	(782,268)	$2.09		-	-
Forfeited	-	-		-	-
Outstanding, end of year	5,223,160	$0.76	$ -	1,982,428	$1.29	$9,000
Exercisable, end of year	2,770,910	$0.95	$ -	1,832,428	$1.33	$9,000

(1) Intrinsic value based upon December 31, 2018 price of a share of Solitario common stock as quoted on the NYSE American exchange of $0.23 per share.

(2) Intrinsic value based upon December 31, 2017 price of a share of Solitario common stock as quoted on the NYSE American exchange of $0.60 per share.

(3) Options granted during 2018, include 2,300,000 Conditional Options, approved by Solitario shareholders on June 19, 2018.

During the years ended December 31, 2018 and 2017, Solitario recorded $660,000 and $50,000, respectively, of stock option expense under the 2013 Plan for the amortization of the grant date fair value of each of its outstanding options with a credit to additional paid-in-capital. At December 31, 2018, the total unrecognized stock option compensation cost related to non-vested options is $639,000 and is expected to be recognized over a weighted average period of 24 months.

On September 1, 2017, the Board of Directors granted, subject to shareholder approval at the next meeting of shareholders, 2,300,000 stock options under the 2013 Plan to officers and members of the Board of Directors (the “Conditional Options”). The Conditional Options were approved by Solitario’s shareholders at Solitario’s annual meeting on June 19, 2018. The Conditional Options vest on the schedule of 25% on date of approval of the grant (June 19, 2018) and 25% on each of the next three anniversary dates of the date of grant (September 1, 2018, 2019 and 2020).