On August 8, 2017 Solitario Zinc Corp. (“
Solitario
”)
filed the attached technical report entitled “
NI 43-101 Technical Report Preliminary
Economic Assessment Florida Canyon Zinc Project Amazonas Department, Peru
” dated August 3, 2017 (the “
Report
”)
with securities regulatory authorities in Canada. It is hereby furnished to, not filed with, the Securities Exchange Commission
(the “
SEC
”) on Form 8-K to satisfy Solitario’s “public disclosure” obligations under Regulation
FD of the Securities Exchange Act of 1934.
The Report was prepared in accordance
with National Instrument 43-101 of the Canadian Securities Administrators (“NI 43-101”) by SRK Consulting (US), Inc.
(“SRK”). The following individuals are listed as a Qualified Person as defined by NI 43-101for the preparation of the
Report:
J.B.
Pennington, MSc,
CPG,
AIPG
/ SRK Principal Mining Geologist
Daniel
H.
Sepulveda,
SRK
Associate
Consultant
(Metallurgist)
Joanna
Poeck,
BEng
Mining, SME-RM, MMSAQP / SRK
Senior Consultant (Mining
Engineer)
Jeff Osborn, BEng
Mining,
MMSAQP
/ SRK Principal
Consultant
(Mining
Engineer)
James
Gilbertson,
MCSM,
CGeol,
FGS / SRK Principal Exploration Geologist
John
Tinucci,
PhD,
PE / SRK Principal Consultant (Geotechnical
Engineer)
Walter
Hunt, CPG
/
Solitario
Zinc
Corp, COO
As a company listed on the Toronto
Stock Exchange and a reporting issuer under Canadian securities laws, Solitario is required to prepare its technical reports in
accordance with the policies of NI 43-101, the Canadian securities laws and the rules of the Toronto Stock Exchange.
All mineral resources in the Report
have been estimated in accordance with the definition standards on mineral resources and mineral reserves of the Canadian Institute
of Mining, Metallurgy and Petroleum referred to in NI 43-101. U.S. reporting requirements for disclosure of mineral properties
are governed by the SEC Industry Guide 7 (“
Guide 7
”). NI 43-101 and Guide 7 standards are substantially different.
The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian
mining terms as defined in accordance with NI 43-101. These definitions differ from the definitions in Guide 7. Under Guide 7 standards,
a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average
price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must
be filed with the appropriate governmental authority.
The Report uses the
terms “mineral resource,” “measured mineral resource,” “indicated mineral resource” and “inferred
mineral resource”. These terms are defined in and required to be disclosed by NI 43-101; however, these terms are not defined
terms under Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors
are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.
“Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility
studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists
or is economically or legally mineable. Disclosure of “contained pounds” in a resource is permitted disclosure under
Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves”
by SEC standards as in place tonnage and grade without reference to unit measures.
On August 2, 2017, the Solitario
issued the attached press release relating to the Report.
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