UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K/A

Amendment No. 1

(Mark One)X    Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the fiscal year ended
December 31, 2016
or   Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period fromto
Commission file number 001-32978SOLITARIO EXPLORATION & ROYALTY CORP.
(Exact name of registrant as specified in charter)

| | Colorado
(State or other jurisdiction of incorporation or organization)              | 84-1285791
(I.R.S. Employer Identification No.)
| | ------------------------------------------------------------------------------------ | -----------------------------------------------
| | 4251 Kipling St. Suite 390, Wheat Ridge, CO
(Address of principal executive offices) | 80033
(Zip Code)                               
| | Registrant's telephone number, including area code                                   | (303)  534-1030                                



Securities registered pursuant to Section
12(b) of the Act:

|Title of each class           | Name of exchange on which registered
|----------------------------- | ------------------------------------
|Common Stock, $0.01 par value | NYSE MKT                            



Securities registered pursuant to Section 12(g) of the Act:
None



Indicate by check mark if the registrant is a well-known seasoned
issuer, as defined in Rule 405 of the Securities Act.

YES [  ]   NO [X]

Indicate by check mark if the registrant is not required to
file reports pursuant to Section 13 or Section 15(d) of the Act.

YES [  ]   NO [X]

Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days.

YES [X]   NO [  ]

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant
to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit and post such files).

YES [X]   NO [  ]

Indicate by check mark if disclosure of delinquent
filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained to the best of registrant's knowledge
in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K.  [ ]



Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated
filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.:



|Large accelerated filer [ ] | Accelerated filer [  ] | Non-accelerated Filer [  ]
(Do not check if a smaller 
    reporting company) | Smaller Reporting Company [X]
|--------------------------- | ---------------------- | ----------------------------------------------------------------------------- | -----------------------------



Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Act).

YES [ ] NO [X]



The aggregate market value of the voting and non-voting common
stock held by non-affiliates of the registrant as of the last business day of the registrant's most recently completed second fiscal
quarter, based upon the closing sale price of the registrant's common stock on June 30, 2016 as reported on NYSE MKT, was approximately
$18,598,000.



There were 38,686,989 shares of common stock, $0.01 par value,
outstanding on March 10, 2017.





1







DOCUMENTS INCORPORATED BY REFERENCE



None



EXPLANATORY NOTE



This Amendment No. 1 on Form 10-K/A (this “Amendment”)
to the Annual Report on Form 10-K of Solitario Exploration & Royalty Corp. (“Solitario” or "the “Company”)
for the fiscal year ended December 31, 2016, initially filed with the Securities and Exchange Commission (the “SEC”)
on March 13, 2017 (the “Original Filing”), is being filed to include the information required in Part III of the Company’s
Annual Report on Form 10-K. The Part III information was previously omitted from the Original Filing in reliance on General Instruction
G (3) to Form 10-K, which permits the information in the above referenced items to be incorporated in the Form 10-K by reference
to our definitive proxy statement if such statement is filed no later than 120 days after our fiscal year end. The reference on
the cover of the Original Filing to the incorporation by reference to portions of our definitive proxy statement into Part III
of the Original Filing is hereby deleted.



In addition, pursuant to the rules of the SEC, the exhibit list
included in Item 15 of Part IV of the Original Filing has been amended to contain currently-dated certifications from the
Company’s Chief Executive Officer and Chief Financial Officer, as required by Section 302 of the Sarbanes-Oxley Act
of 2002. The certifications of the Company’s Chief Executive Officer and Chief Financial Officer are attached as exhibits
to this Amendment.



Except for the foregoing amended information, this Amendment does
not amend or update any other information contained in the Original Filing. Therefore, this Amendment should be read together with
other documents that the Company has filed with the SEC subsequent to the filing of the Original Filing. Information in such reports
and documents updates and supersedes certain information contained in the Original Filing.



2







Item 10. Directors, Executive Officers and Corporate Governance



Directors and Officers

| | (a) | Identification of Directors
| | --- | ---------------------------



|Name                                | Age |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|----------------------------------- | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Brian Labadie
Chairman (1)(2)(3)(4) | 64  | Mr. Labadie has been a director of Solitario since June 2006 and Chairman since March of 2009.  He is an independent mining industry consultant.  He was a director of Crown Resources Corporation (CRS: TSX) ("Crown") from June of 2002 until August 2006 upon completion of Crown’s merger with Kinross Gold Corporation ("Crown-Kinross Merger") and a director of Battle Mountain Gold Exploration Corporation (BMGX:OTC) from June 2005 to June 2007.  In evaluating Mr. Labadie’s qualifications as a director, Solitario’s Board of Directors (the “Board”) considered the experience Mr. Labadie has in over forty years-experience in the mining industry.  The specific experience that Mr. Labadie brings to Solitario includes formal training and experience as a mining engineer including developing and operating mines, both as a mine manager and as a senior executive at Miramar Mining Corporation and Echo Bay Mines.  The Board believes Mr. Labadie’s operating experience complements and enhances the knowledge and understanding the other Board members and management of Solitario have in mining exploration, and corporate finance.  Mr. Labadie spent ten years with Miramar Mining Corporation from November 1996 to September 2006 as the Executive Vice President, COO.  Prior to that, Mr. Labadie spent nine years with Echo Bay Mines, Ltd. as Vice President of Operations.  Mr. Labadie holds a Bachelor of Science degree in geological engineering from the University of Toronto.
|                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|John Labate(1)(2)(3)(4)             | 67  | Mr. Labate has been a director of Solitario since
    December 2016 and is the Audit Committee Chairman.  Since May 2015 he has been the CFO of Gold Resources
    Corporation.  Mr. Labate has held management positions in the mining industry for the past 36
    years.  These included Operations Analysis Manager for Anaconda Minerals Company (1980-1986), Corporate Controller
    for Bond International Gold (1987-1991), CFO for Crown (1992-1997), CFO for GeoBiotics (1997-1999); CFO for Applied Optical
    Technologies (1999-2004), CFO for Constellation Copper (2004-2008,  CFO for Golden Star Resources (2008-2012) and
    principal of East Cape Advisors (2012-2015).  Mr. Labate is experienced in all aspects of accounting, finance and
    regulatory management within the public sector of the mining industry in both the United States and Canada.  The
    Board believes Mr. Labate’s formal training in accounting and finance, coupled with his 36 years of industry
    experience, makes him uniquely suited to serve on the Board.  Mr. Labate received a Bachelor of Science,
    Accounting, from San Diego State University and passed all parts of the CPA examination.                                                                                                                                                                                                                                                                                                          
|                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              



3







|Leonard Harris(1)(2)(3)(4)                                                                                                                                                                                                                                                              | 89 | Mr. Harris has been a director of Solitario since June 1998.  Prior to his retirement from Newmont Mining Corporation, Mr. Harris gained over 60 years of experience in the mining industry serving in various capacities including as the former General Manager of Minera Yanacocha, South America's largest gold mine, and former Vice President and General Manager of Newmont Latin America. Mr. Harris has over 20 years of experience in managing mining operations in Latin America that include base metal and gold deposits, underground and open pit mines, gold and base metal processing plants and smelting and refining operations.  In evaluating Mr. Harris’s qualifications to serve as a director, the Board believes Mr. Harris experience in managing and developing mines all over the world, but specifically in Peru and Latin America, where much of Solitario’s exploration efforts have been focused, is paramount to the success of Solitario.  In addition, Mr. Harris has a strong reputation in the mining industry and has provided Solitario with numerous opportunities and introductions that Solitario would likely not have had without his association with Solitario as a Board member.  Mr. Harris currently serves on the board of directors of Aztec Metals Corp., Canarc Resources, Wealth Minerals, Inc and Cardero Resources Corp.  He is a 1949 graduate metallurgist of The Mount Morgan School of Mines (Australia).                                                                                                                                                                                                                                                                                           
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                        |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Christopher E. Herald                                                                                                                                                                                                                                                                   | 63 | Mr. Herald has been a director of Solitario since August 1992.  He has also served as Chief Executive Officer since June 1999 and President since August 1993.  Mr. Herald also served as a director of Crown starting in April 1989, as Chief Executive Officer of Crown starting in June of 1999, President of Crown from November 1990 until August 2006, when he resigned from such positions upon completion of the Crown-Kinross Merger.  In evaluating Mr. Herald’s qualifications to serve as a director, the Board of Solitario believes his leadership of Solitario since Solitario’s inception as Chief Executive Officer, as well as his knowledge of the operations, make him an invaluable member of the Board.  In addition, Mr. Herald has shown a keen insight in the evaluation of various opportunities in the mining industry, including the acquisition of properties for exploration and potential merger and acquisition candidates for Solitario.  Mr. Herald has a track record of operating mining companies both with Crown and Solitario and the Board believes these are significant contributors to the success of Solitario.  Prior to joining Crown, Mr. Herald was a Senior Geologist with Echo Bay Mines and Anaconda Minerals Mr. Herald was formerly a director of  Underworld Resources Inc. (UW: V) from June 2009 to June 2011, and Atna Resources from May 2009 to June 2015.  Mr. Herald is past Chairman of the Denver Gold Group, a non-profit industry trade group that organizes the preeminent gold mining industry institutional conferences in the United States and Europe.   Mr. Herald received a M.S. in Geology from the Colorado School of Mines and a B.S. in Geology from the University of Notre Dame.
|                                                                                                                                                                                                                                                                                        |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|The Board has determined this director to be an independent member of the Board in accordance with Section
        803A of the NYSE-MKT Company Guide.
        Member of the Audit Committee.
        Member of the Compensation Committee.
        Member of the Nominating Committee.



| | (b) | Identification of Executive Officers
| | --- | ------------------------------------



Executive Officers



The following biographies describe the
business experience of our executive officers (each also being a "Named Executive Officer" as defined in Item 402 of
Regulation S-K):

Christopher E. HeraldSee
biography above under the heading “Identification of Directors.”

Walter H. Hunt (66) has been Chief
Operating Officer of Solitario since June 2008 and Vice President - Operations and President - South American Operations of Solitario
since June 1999. He also served as Vice President - Peru Operations from July 1994 until June 1999. Mr. Hunt was also Vice President
- Operations of Crown from 1994 until completion of the Crown - Kinross Merger in August of 2006. Mr. Hunt has over 35 years of
exploration, development and operational experience with Anaconda Minerals, Noranda and Echo Bay Mines where he served as Superintendent,
Technical Services and Chief Geologist at Echo Bay's Kettle River Operations. Mr. Hunt received his M.S. degree in Geology from
the Colorado School of Mines and a B.S. degree from Furman University.

James R. Maronick (61) has
served as Chief Financial Officer, Secretary and Treasurer of Solitario since 1999 and was Chief Financial Officer of Crown
from June 1999 until completion of the Crown - Kinross Merger in August of 2006. Prior to that, Mr. Maronick served as Vice
President - Finance and Secretary/Treasurer of Consolidated Nevada Gold Fields Corporation from November 1994 to September
1997. Mr. Maronick graduated with honors from the University of Notre Dame in 1977 with a BA in accounting and received his
Master’s degree in Finance with highest honors from the University of Denver in 1986.

4







(c) Identification of Certain Significant Employees



Not Applicable.



(d) Family Relationships



There are no family relationships among any
director or executive offices of the Company



(e) Business Experience



The business experience of each of our directors
and executive officers is set forth in Item 10(a)—Identification of Directors of this Annual Report on Form 10-K/A and the
business experience of those executive officers who are not also our directors is set forth in Item 10(b)—Identification
of Executive Officers of this Annual Report on Form 10-K/A.



The directorships held by each of our directors
in any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), or subject to Section 15(d) of the Exchange Act or any company registered as an investment company
under the Investment Company Act of 1940, as amended, are set forth in Item 10(a)—Identification of Directors of this Annual
Report on Form 10-K/A.



(f) Involvement in Certain Legal Proceedings



During the past ten years none of the persons
serving as executive officers and/or directors of the Company has been the subject matter of any of the following legal proceedings
that are required to be disclosed pursuant to Item 401(f) of Regulation S-K including: (a) any bankruptcy petition filed by or
against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within
two years prior to that time; (b) any criminal convictions; (c) any order, judgment, or decree permanently or temporarily enjoining,
barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; (d) any finding
by a court, the SEC or the U.S. Commodity Future Trading Commission to have violated a federal or state securities or commodities
law, any law or regulation respecting financial institutions or insurance companies, or any law or regulation prohibiting mail
or wire fraud; or (e) any sanction or order of any self-regulatory organization or registered entity or equivalent exchange, association
or entity. Further, no such legal proceedings are believed to be contemplated by governmental authorities against any director
or executive officer.



(g) Promoters and Control Persons



Not Applicable.



(h) Meetings of Board of Directors Annual Meeting Attendance



During the fiscal year ended December
31, 2016, there were four meetings of the Board. Each of the incumbent directors attended each of those Board meetings. Each of
the incumbent directors attended all meetings held by committees of the Board (described below) on which they served during 2016.
All of the references to meetings exclude actions taken by written consent.

The Company does not have a formal policy
regarding the attendance of our Board members at our annual meetings of shareholders and Board members are not required to attend
such meetings. Mr. Herald was the only director that attended the annual meeting of shareholders held on June 14, 2016.



5





(i) Procedures for Stockholder Nominations
to the Registrant’s Board of Directors



No material changes to
the procedures for nominating directors by our shareholders, as described in the Proxy Statement filed by the Company on April
28, 2016 with respect to the 2016 annual meeting of shareholders, has been made since such Proxy Statement was filed.



(j) Audit Committee and Financial Expert



Solitario has a separately-designated
standing audit committee established in accordance with section 3(a)(58)(A) of the Exchange Act. The Audit Committee consists of
Mr. Labate, Mr. Harris and Mr. Labadie, each of whom is “independent” in accordance with NYSE MKT standards, as well
as the independence requirements for audit committee members under Rule 10A-3 promulgated under the Exchange Act. The Board has
determined that Mr. Labate is the audit committee financial expert as defined in Item 407(d)(5) of Regulation S-K. The Audit Committee
acts under a written charter that was adopted and approved by the Board on July 26, 2006, a current copy of which is available
on the Company website at www.solitarioxr.com. The Audit Committee’s primary function is to review Solitario's financial
reporting process on behalf of the Board. Management has the primary responsibility for the financial statements and the reporting
processes, including the system of internal controls. The Audit Committee met five times during the year ended December 31, 2016.

Audit Committee Report



In performing its duties the Audit Committee
reviewed and discussed the audited financial statements contained in the 2016 Annual Report on Form 10-K with management and Solitario's
independent registered public accountant, EKS&H LLLP. The Audit Committee met with EKS&H LLLP, and discussed all issues
deemed to be significant by EKS&H LLLP, including any matters required by Rule 2-07 of Regulation S-X, "Communication
with Audit Committees" and by the statements on Auditing Standard No. 16, as amended (AICPA Professional Standards,
Vol. 1, AU section 380), as adopted by the Public Company Oversight Board, and without management present, discussed and reviewed
the results of the independent auditor's examination of the financial statements. In addition, in accordance with Independence
Standards Board Standard No. 1, "Independence Discussions with Audit Committees" as amended or supplemented, the Audit
Committee discussed with EKS&H LLLP its independence from Solitario and its management, and has received and reviewed the written
disclosures and letter from EKS&H LLLP required by applicable requirements of the Public Company Accounting Oversight Board
regarding EKS&H LLLP’s communications with the Audit Committee including that EKS&H LLLP is independent and has discussed
EKS&H LLLP’s independence with them.

Based on the reviews and discussions
outlined above, the Audit Committee recommended to the Board that Solitario include the audited financial statements in its Annual
Report on Form 10-K for the year ended December 31, 2016 which was filed with the SEC on March 13, 2017.

AUDIT COMMITTEE
               	John Labate, Chairman
               	Leonard Harris
               	Brian Labadie



Section 16(a) Beneficial Ownership Reporting Compliance



Section 16(a) of the Exchange Act requires
Solitario's directors and executive officers, and persons who own more than ten percent of a registered class of Solitario's equity
securities, to file with the SEC initial reports of ownership and reports of changes in ownership of the Company’s Common
Stock and other equity securities of Solitario. Officers, directors, greater than ten percent shareholders are required by SEC
regulation to furnish Solitario with copies of all Section 16(a) reports they file. Based solely on review of the copies of such
reports, furnished to Solitario and written representations that no other reports were required, during the year ended December
31, 2016, Mr. Labadie, Mr. Jones (a former Director), Mr. Hainey (a former Director), Mr. Harris, Mr. Herald, Mr. Maronick and
Mr. Hunt, each filed a single Form 4 reporting one transaction late. No other person failed to timely meet the Section 16(a) filing
requirements applicable to officers, directors, and greater than ten percent beneficial owners during the year ended December
31, 2016.



6





Code of Ethics



We adopted a Code of Business Conduct and Ethics
including a Code of Ethics applicable to the principal executive officer and the principal financial and accounting officer of
Solitario (the "Code of Ethics") on June 27, 2006, a copy of which may be found on our website at www.solitarioxr.com
and on SEDAR at www.sedar.com. Any person who wishes to receive a copy of the Code of Ethics may do so at no charge by written
request to Investor Relations, Solitario Exploration & Royalty Corp., 4251 Kipling St, Suite 390, Wheat Ridge, CO 80033.



Item 11. Executive Compensation



Compensation
Discussion and Analysis



The following discussion provides information
regarding the compensation program for Solitario's Named Executive Officers for 2016.

Objectives of the Company’s Compensation Program

The Compensation and Management Development
Committee (the “Compensation Committee”) has responsibility for approving the compensation program for Solitario's
Named Executive Officers and acts according to a charter that has been approved by the Board and is available on the Company website
at www.solitarioxr.com. The compensation program is designed to attract, retain and reward our executives who contribute to Solitario's
long-term success. This in turn is intended to build value for Solitario and its shareholders. The program is based upon three
fundamental principles:

(1)       A substantial
portion of Solitario's Named Executive Officer compensation should be performance and equity-based to achieve alignment with shareholder
interests.

This principle is accomplished in two
primary ways; first, through the award of stock options or, other equity awards contemplated in the equity compensation plans adopted
by Solitario, in an amount and with such terms intended to encourage our Named Executive Officers to promote the long-term growth
and performance of Solitario as may be reflected in the price of our Common Stock as quoted on the TSX and the NYSE-MKT.

Second, this is also reflected in terms
of cash compensation in the form of cash bonuses. These bonuses are set by the Compensation Committee, in its sole discretion,
in a range of zero to 100% of base salary. The extent to which bonuses are paid depends entirely on the extent to which the Compensation
Committee believes Solitario has met its development, exploration, budget and shareholder goals, as set by the Compensation Committee
and the current and expected financial condition of the Company. In March 2016 the Compensation Committee awarded a $60,000 bonus
to Mr. Herald, a $44,000 bonus to Mr. Hunt and a $40,000 bonus to Mr. Maronick for the performance of the Named Executive Officers
and the achievement of certain Company goals during 2015. The Compensation Committee considered the milestones achieved during
2015 by the Company, including (i) completion of the sale of our former interest in the Mt. Hamilton project through the sale
of our interest in Mt. Hamilton LLC (“MH-LLC”) to Waterton Nevada Splitter, Ltd. (“Waterton”) for gross
proceeds of $24,000,000 (the “Transaction”), (ii) the refinancing and eventual repayment, upon the closing of the
Transaction, of $5,000,000 short-term debt due to RMB Australia Holdings, Ltd., and (iii) successful marketing of our interest
in MH-LLC, including obtaining approval of the Transaction by holders of over 90% of our outstanding shares at our annual meeting
held in August 2015. Primarily due to the limited financial resources of the Company during 2015, prior to the sale of our interest
in MH-LLC, no bonuses were authorized by the Compensation Committee to be paid during 2015. The Compensation Committee considered
the bonuses paid in 2016 as earned in 2015 and these bonuses are included in the summary compensation table below for each Named
Executive Officer for the year ended December 31, 2015. The Compensation Committee did not award any bonuses for the year ended
December 31, 2016 to any Named Executive Officer based upon their review of the performance of the price of the Company’s
common stock during the year and upon the absence of a major mineral property acquisition and / or strategic investment during
the year ended December 31, 2016.

7





(2)        Solitario's
compensation program for Named Executive Officers is intended to enable the Company to compete for the best executive talent available.

The Compensation Committee believes shareholders
are best served when the Company can attract and retain the highest caliber executives appropriate for a company of our size and
complexity. This is done with compensation packages we believe to be fair and competitive. Our Named Executive Officers have served
Solitario for many years. During 2016 and 2015 the Compensation Committee reviewed published compensation surveys and publically
available compensation disclosures of several of our peer group companies (“Peer Group Companies”) for which Solitario
competes for executive talent as the Compensation Committee believes that each of these public companies share some attributes
of Solitario with regard to similar size to, and in a similar industry as Solitario. These Peer Group Companies included the following
companies:

|Vista Gold Corp.  | Midas Gold Corp.        
|----------------- | ------------------------
|Entree Gold Corp. | Riverside Resources Inc.



These reviews were not used to create
specific benchmarks applicable to our Named Executive Officer compensation levels. These reviews were used to inform the Compensation
Committee of current standards in the industry as such standards may relate, in their independent judgment, to appropriate modifications
to Solitario's existing compensation levels. During 2016, Solitario's activities were generally focused on the evaluation of mineral
properties for acquisition and on junior mining companies with mineral properties for strategic investment in the form of potential
merger, acquisition or sale; during most of 2015 Solitario’s activities were more narrowly focused initially on the development
of the Mt. Hamilton project, and subsequently on the marketing and eventual sale of the Mt. Hamilton project, as well as other
early stage exploration. As the focus of Solitario during the two most recent fiscal years did not directly compare in all cases
to the activities of the Peer Group Companies, the Compensation Committee took the difference in focus into consideration when
reviewing compensation of Solitario’s Named Executive Officers compared to the peer companies. Additionally, Solitario has
traditionally maintained a very minimal staff and the difference in the number of total employees of Solitario, which currently
has six employees world-wide, compared to the Peer Group Companies; do not lend itself to effective use of specific benchmarks.

Subsequent to the completion of the Transaction,
the Compensation Committee, in consultation with the Named Executive Officers, in light of the then difficult financial conditions
in the junior mining sector as a result of continued low precious and base metal prices as well as the reduction in Mt. Hamilton
related Company activities, decided to reduce the annual salaries of its Named Executive Officers, as of October 1, 2015; with
the salary of Mr. Herald being reduced from $230,000 to $198,000, the salary of Mr. Maronick being reduced from $160,000 to $150,000
and the salary of Mr. Hunt being reduced from $178,000 to $158,000. The Named Executive Officers’ salaries remained at the
reduced amount during 2016, except for an increase in September 2016 to Mr. Hunt’s salary of $1,000 per month and an increase
to Mr. Herald’s salary in June of $500 per month related to an increase in health care costs. At the beginning of 2015, based
upon the difficult financial markets and the limited financial resources of the Company, the Compensation Committee decided to
leave the ending annual 2014 salary amounts the same during 2015 with the salary of Mr. Herald at $230,000, the salary of Mr. Maronick
at $164,000 and the salary of Mr. Hunt at $178,000. However, to conserve cash resources during 2015, all employees of Solitario,
including its Named Executive Officers agreed to defer between 15% and 34% of the gross cash salary payments due during 2015. Upon
completion of the Transaction, and given the strong financial condition of Solitario, all amounts previously deferred during 2015,
were paid in the fourth quarter of 2015.

(3)        Solitario's
compensation program for the Named Executive Officers should be fair to the executive, the Company and all its employees and perceived
as such, both internally and externally.

The Compensation Committee strives to
create a compensation program that promotes good corporate practice, encourages our Named Executive Officers to perform at a high
level and promotes teamwork among our employees. The Compensation Committee takes these goals into consideration by comparison
of executive pay in relation to all other Solitario salary costs for internal consistency, and by comparison to both Peer Group
Companies and industry salaries for external consistency. In addition, the compensation program is intended to enhance shareholder
value and the Compensation Committee strives to provide transparency and full disclosure to all interested parties.



8





The Compensation Committee has no authority
to recover salary, bonuses or stock option awards or other equity awards made to Named Executive Officers. Although the Compensation
Committee has the ability to consider prior compensation (e.g. gains from prior option grants or other equity awards) in setting
current compensation, it has no formal procedure or requirement to do so. The Compensation Committee does not set or utilize benchmarks
of any kind to set, evaluate or allocate compensation. There have been no actions taken or adjustments made to the process of setting
executive compensation discussed herein by the Compensation Committee subsequent to December 31, 2016.

Key Elements of Executive Compensation

The elements of the Company’s compensation
program are intended to balance long term and short term compensation for its executives and attempt to motivate executives to
provide excellent leadership and achieve Company goals by linking short-term (such as salaries and benefits) and long-term incentives
(such as equity based compensation) to the achievement of business objectives, thereby aligning the interests of executives and
shareholders. In addition the Compensation Committee recognizes the performance of the Company’s Common Stock is often influenced
by the general investment climate of the junior mining industry, which is not within the control of the specific performance of
the Named Executive Officers in achieving the objectives set by the Company. The key elements of the compensation of the Named
Executive Officers are outlined below. The Compensation Committee considers shareholder input when setting compensation for Named
Executive Officers. At our 2016 annual meeting of shareholders, greater than 91% of the votes cast on the advisory vote on executive
compensation were in favor of our executive compensation program. The Board of Directors and the Compensation Committee reviewed
these vote results and determined that, given the significant level of support, no major re-examination of our executive compensation
program was necessary at that time.

| | (1) | Base Salary
| | --- | -----------



The Compensation Committee attempts to
provide base salary to the Named Executive Officers that is commensurate with their review of our Peer Group Companies. The Compensation
Committee fixed the base salary for the Named Executive Officers for 2016 (which commenced on January 1, 2016) during its meeting
in September 2015. Increases or decreases in base salary are dependent on the Compensation Committee's evaluation of each individual
Named Executive Officer performance, the effect of a peer group review, the performance of the entire Company relative to the Company’s
general goals and objectives, and the Company’s current and projected financial resources. No Named Executive Officers receive
minimum base salary payments pursuant to any employment agreement, or other written agreement. The Compensation Committee has authority
from the Board to set the base salary at any amount it believes is appropriate. Although the Compensation Committee, has used its
review of the accomplishments of the Named Executive Officers against general goals of the Company, including planned exploration
programs, potential mineral property acquisitions, evaluation of strategic opportunities for a corporate merger, acquisition or
sale; the 2015 sale of the Mt. Hamilton project, corporate financing activities and market price of Solitario’s Common Stock,
among other things, the Compensation Committee has full discretion to set compensation levels and has not set specific compensation
levels to specific criteria. Some of the general criteria are discussed below.

| | (2) | Bonuses
| | --- | -------



The Compensation Committee may provide bonuses
to the Named Executive Officers, in its sole discretion, based upon their evaluation of the individual Named Executive Officer
in light of the certain parameters, including the following:



| | (i) | Bonuses based upon operational goals and parameters;
| | --- | ----------------------------------------------------

| | (ii) | The desire, discussed above, to provide a substantial portion of compensation based on performance
| | ---- | --------------------------------------------------------------------------------------------------

| | (iii) | The performance of the Company relative to Company goals including share price performance;
| | ----- | -------------------------------------------------------------------------------------------

| | (iv) | The financial strength of the Company, including liquid financial assets;
| | ---- | -------------------------------------------------------------------------

| | (v) | The quality of mineral property assets, including exploration assets and mineral properties under joint venture; and
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (vi) | The financial strength and prospects for the smaller (junior) exploration mining industry.
| | ---- | ------------------------------------------------------------------------------------------



9







In establishing its goals for any particular
year, the Compensation Committee strives to ensure that the goals provide both an incentive and an attainable goal that provides
shareholders with the opportunity for return on their investment while minimizing corporate and shareholder risk to the extent
possible. Although certain targets and goals related certain operational goals, such as to potential property acquisitions and/or
potential merger or acquisition activities, if any, are confidential, the Compensation Committee has structured these types of
goals to be reasonable and obtainable by our Named Executive Officers, without undue risk to the assets of Solitario. Due to the
nature of Solitario's corporate activities relating to (i) the evaluation of mineral properties for acquisition; (iii) the evaluation
of strategic opportunities for a corporate merger, acquisition or sale; (iii) the sale of the Mt. Hamilton project during 2015
and (iv) early-stage exploration of mineral properties located in Peru, the goals for Named Executive Officers are not specifically
related to traditional financial metrics, such as revenue growth, earnings or earnings per share. The operational targets and goals
are more subjective and generally include (i) the evaluation, negotiation and acquisition of mineral property agreements; (ii)
evaluation of strategic opportunities; (iii) land and royalty joint ventures on our existing properties, (iv) exploration activities
and success, both on our own and through joint ventures; (v) training and retaining employees, (vi) operational activities including:
maintaining adequate liquidity to fund future exploration activities, financial reporting and disclosure, and shareholder return.
The Compensation Committee also evaluates the financial strength and prospects for the junior exploration segment of the mining
industry. The Compensation Committee reviews the annual goals with the Named Executive Officers at or near the start of each year.
The evaluation of the performance of our Named Executive Officers, relative to the goals outlined herein, has been and is expected
to continue to be at the discretion of the Compensation Committee. As discussed above, In December of 2016, the Compensation Committee
determined that no bonus was earned during the year ended December 31, 2016 and the Named Executive Officers would not be paid
a bonus for the year ended 2016 during 2017.

| | (3) | Equity
| | --- | ------



The only equity compensation our Named
Executive Officers have historically received is in the form of stock options granted pursuant to the 2006 Stock Option Incentive
Plan (the “2006 Plan”) and the 2013 Solitario Exploration & Royalty Corp. Omnibus Stock and Incentive Plan (the
“2013 Plan”), with the exercise price of such options equal to the current market value of our Common Stock at the
date of grant. The Compensation Committee believes that a portion of our Named Executive Officers’ compensation should be
performance based and tied to the long term value of the Company. The Compensation Committee also believes that our compensation
policies should be fair to our shareholders, and be focused on our long-term viability. The Compensation Committee believes the
granting of stock options or other forms of equity based compensation aligns the interests of the Named Executive Officers and
our shareholders and provides the incentive to manage the Company from the perspective of an owner of the Company. In addition,
the Compensation Committee believes the vesting terms of the stock options granted from the 2013 Plan, discussed below, provide
that a significant portion of the compensation will be received at a future date, which provides a tempered longer-term incentive
for our Named Executive Officers as well as an incentive for them to remain with the Company.

The amount of all individual grants and the
grant date of the stock options have been determined periodically by the Compensation Committee or by the full Board. All grants
to date are as of the date of the approval by the Compensation Committee (or the full Board, if requested by the Compensation Committee)
at the fair market value on the date of grant. To date, all option grants from the 2006 Plan and the 2013 Plan vest 25% on the
date of grant and the remaining options vest at 25% per year on the anniversary of the grant over a three-year period. On July
28, 2016 the Board granted 1,699,000 options under the 2013 Plan, which included 450,000 options to Mr. Herald, 330,000 options
to Mr. Hunt, and 309,000 options to Mr. Maronick. On August 24, 2016, the holders of options voluntarily surrendered for cancellation
all options previously granted to such persons pursuant to the 2013 Plan and the 2006 Plan, including Mr. Herald, Mr. Hunt and
Mr. Maronick. Solitario cancelled the options upon surrender. As a result, there are no outstanding options under either the 2006
Plan or the 2013 Plan as of December 31, 2016.



In the future, our officers and directors
may receive additional equity based awards pursuant to the 2013 Plan, which may take the form of stock options or the other forms
of awards including restricted stock awards, restricted stock units or stock appreciation rights.

10





Allocation between the Key Elements of Compensation

The Compensation Committee has complete
discretion in allocating total compensation between the key elements of compensation discussed above. Each of the individual components
of compensation is evaluated by the Compensation Committee independently and each component is not evaluated based upon the other
components. The Compensation Committee has not developed a set formula (such as fair value of equity compensation to equal 50%
of base salary) to allocate the elements of compensation to each individual Named Executive Officer.

Employment Agreements

None of our Named Executive Officers
have ongoing employment agreements other than individual Change in Control Severance Benefits Agreements, discussed under “Change
in Control Agreements” below.

Change in Control Agreements

The Compensation Committee and Solitario
consider it essential to the best interest of its shareholders to foster the continuous employment of key management personnel.
In this regard, the Compensation Committee and Board recognize that, as is the case with many publicly held corporations and their
subsidiaries, the possibility of a change in control may exist and that such possibility, and the uncertainty and questions which
it may raise among management, may result in the departure or distraction of management personnel to the detriment of the Company
and its shareholders.

Accordingly, on March 14, 2007, the Compensation
Committee approved separate Change in Control Severance Benefits Agreements (each a "CIC") for each of the persons serving
as our Named Executive Officers, Mr. Herald, Mr. Maronick and Mr. Hunt. Each CIC provides for the payment of severance benefits
if the employment of one of the Named Executive Officers is terminated during a period of three years following the last day of
the month in which a Change in Control of Solitario (as defined in the CIC) occurs equal to 2.5 times the base salary of the Named
Executive Officer. In addition any unvested stock options held by the Named Executive Officer will vest upon the Change in Control.
The CIC provides an additional gross up for any taxes due as a result of Excise Tax, as defined by Section 4999 of the Code.

Generally, the CIC defines a "Change
in Control" as (i) a person acquiring more than 50% of the outstanding stock of the Company, (ii) the shareholders of the
Company approving a merger or acquisition whereby more than 50% of the outstanding shares held prior to the vote will be held by
a new person or corporation, (iii) the shareholders of the Company approving the sale or disposition of substantially all of the
company's assets or (iv) the shareholders of the Company approving a plan of liquidation or dissolution of the Company. During
2015, the Company determined that the Transaction did not constitute a Change in Control as defined in each CIC and did not trigger
any compensation due to an officer that is a party to a CIC.

Benefits are payable under each CIC after
a Change in Control if the Named Executive Officer terminates his employment for "good reason," or is terminated by the
Company, other than for "cause." "Good reason" is generally defined as a reduction in the compensation, level
of responsibility or forced relocation, among other things. "Cause" is generally defined in the CIC as the conviction
of a felony, gross and willful failure to perform assigned duties, and dishonest conduct that is intentional and materially injurious
to the Company.

Tax Implications of Executive Compensation

Under Section 162(m) of the Code, the
Company generally receives a tax deduction for compensation on payments which total less than $1,000,000 paid to our Named Executive
Officers, unless that compensation is performance based. The total non-performance based compensation for any of our Named Executive
Officers did not exceed $1,000,000 during 2016, nor do we anticipate it will exceed $1,000,000 for the foreseeable future.

11







Stock Ownership Guidelines

Solitario has not established formal
stock ownership guidelines for our Named Executive Officers. The Company's Insider Trading Policy prohibits the Named Executive
Officers, as well as other insiders, who may have access to material inside information, from purchasing, selling, entering into
short sale transactions, engaging in hedging or offsetting transactions regarding Solitario's Common Stock during periods where
such persons have access to material inside information.

Compensation Policies with Regard to Risk Management

The Board is responsible for the overall
risk management of the Company. Solitario is subject to the inherent risks involved in the exploration and development of mineral
properties and shareholders should carefully review Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for
the year ended December 31, 2016. However, Solitario does not have any compensation plans or incentives for our Named Executive
Officers or any employee for any risk taking activity or risk management activities. Solitario does not engage in activities that
have traditional incentives for financial risk taking activities, such as buying or selling derivatives or other similar instruments,
other than our limited use of derivatives to reduce our exposure to our holdings of Kinross common stock and the holdings of Vendetta
Mining Corp. (“Vendetta”) warrants, which were acquired during 2016.

Role of the Chief Executive Officer in Compensation Decisions

The Chief Executive Officer (“CEO”)
annually reviews the performance of all other Named Executive Officers. The performance of the CEO is reviewed by the Chairman
of the Compensation Committee. The conclusions and recommendations, which include salary, bonus and equity grants, if any, are
presented to the Compensation Committee, which has absolute discretion in modifying or applying any of the recommendations for
the Named Executive Officers. The Compensation Committee presents its conclusions and recommendations to the Board for their input
and review.



Summary Compensation Table



The following table provides summary
information regarding compensation earned by our Named Executive Officers for the fiscal years ended December 31, 2016 and 2015:

SUMMARY COMPENSATION TABLE

|Name and Principal  Position |  | Year |      | Salary ($) |  | Bonus ($)(1) |         | Stock Awards ($) |  | Option Awards ($)(2)(4) |        | Non-equity incentive plan compensation |  | Change in  Pension  Value and Nonqualified Deferred Compensation Earnings ($) |   | All Other Compensation ($)(3) |  | Total ($)
|---------------------------- |  | ---- | ---- | ---------- |  | ------------ | ------- | ---------------- |  | ----------------------- | ------ | -------------------------------------- |  | ----------------------------------------------------------------------------- | - | ----------------------------- |  | ---------
|Mr. Herald, CEO              |  |      | 2016 |            |  |              | 201,000 |                  |  |                         | —      |                                        |  |                                                                               | — |                               |  |          
|                             |  |      | 2015 |            |  |              | 222,000 |                  |  |                         | 60,000 |                                        |  |                                                                               | — |                               |  |          
|                             |  |      |      |            |  |              |         |                  |  |                         |        |                                        |  |                                                                               |   |                               |  |          
|Mr. Maronick, CFO            |  |      | 2016 |            |  |              | 150,000 |                  |  |                         | —      |                                        |  |                                                                               | — |                               |  |          
|                             |  |      | 2015 |            |  |              | 160,500 |                  |  |                         | 40,000 |                                        |  |                                                                               | — |                               |  |          
|                             |  |      |      |            |  |              |         |                  |  |                         |        |                                        |  |                                                                               |   |                               |  |          
|Mr. Hunt, COO                |  |      | 2016 |            |  |              | 163,000 |                  |  |                         | —      |                                        |  |                                                                               | — |                               |  |          
|                             |  |      | 2015 |            |  |              | 173,000 |                  |  |                         | 44,000 |                                        |  |                                                                               | — |                               |  |          
|                             |  |      |      |            |  |              |         |                  |  |                         |        |                                        |  |                                                                               |   |                               |  |          

| | (1) | Amount for bonus earned during the year. No bonus amount was earned during 2016.
| | --- | --------------------------------------------------------------------------------

| | (2) | The amount represents the grant date fair value of option awards granted during the year in accordance
with FASB ASC No. 718. See Note 9, “Employee Stock Compensation Plans” to the consolidated financial statements included
in our Annual Report on Form 10-K for a discussion regarding assumptions used to calculate fair value.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a. | The 2016 options were granted from the 2013 Plan on July 28, 2016, had a five-year term and vested
25% on grant date and 25% on the next three anniversary dates. The assumptions used in determining our 2016 grant date fair value
are based upon a Black-Scholes model using a five year term, historical volatility of 63% and a risk-free interest rate of 0.9%.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b. | On August 24, 2016, holders of option awards from the 2013 Plan voluntarily cancelled awards for
1,699,000 options with an option price of $.072 with an expiration date of July 27, 2021 to allow Solitario to have
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

additional financial flexibility. No consideration was
given or received by the holders of the options to cancel the awards. Included in the cancellation of those awards were all of
the options granted during 2016 to the Named Executive Officers, including 450,000 options to Mr. Herald, 330,000 options to Mr.
Hunt and 309,000 options to Mr. Maronick.

| | (3) | Mr. Herald, Mr. Maronick and Mr. Hunt each received $24,000 401(K) match during 2016 and 2015.
Mr. Herald and Mr. Maronick each received $4,596 and $1,096, respectively for contributions to their health savings account during
2016 and 2015. Mr. Hunt received $3,212 and $1,096, respectively, for contributions to his health savings account during 2016 and
2015.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | Mr. Herald, Mr. Hunt and Mr. Maronick have no stock options outstanding at December 31, 2016.
| | --- | ---------------------------------------------------------------------------------------------





12





Option exercises and Stock Vested



There were no exercises of stock options
during the year ended December 31, 2016 or 2015 by our Named Executive Officers.

Outstanding Equity Awards at Fiscal Year End



There are no outstanding equity awards at December 31, 2016.



|Equity Compensation Plan Information as of December 31, 2016:
|-------------------------------------------------------------
|Plan category                                                
|2013 Plan                                                    
|Equity compensation plans approved by  security holders      
|Equity compensation plans not approved  by security holders  
|Total 2013 Plan                                              



Compensation of Directors



In addition to any options granted pursuant
to the 2006 Plan and the 2013 Plan, our directors receive the following compensation in their capacities as directors:

|Annual Director retainer fee            | $9,000 ($2,250 per quarter)
|--------------------------------------- | ---------------------------
|Additional Chairman fee                 | $5,000 ($1,250 per quarter)
|Additional Vice Chairman fee            | $3,000 ($750 per quarter)  
|Additional Audit Committee Chairman fee | $2,000 ($500 per quarter)  



All the above referenced fees were paid
quarterly during the year ended December 31, 2016. Fees cover participation in all board and committee meetings, including the
position of all committee chairmen (excluding audit chairman who receives an additional fee). A deduction of $1,000 is made for
any regularly scheduled board meeting (four quarterly meetings) that is missed. The above director fees were increased for 2017
to $13,000 per annum, plus $6,000 per annum additional Chairman fee, $4,000 per annum additional Audit Committee Chairman fee,
and $2,000 per annum Compensation Committee Chairman fee.

The following table provides summary
information regarding compensation earned by our directors during the fiscal year ended December 31, 2016:



13







|Name(1)                   |  | Fees earned or paid in cash ($) |        | Stock Awards ($) |  | Option Awards (2)(3) ($) |   | Non-equity incentive plan compensation |  | Change in  Pension  Value and  Nonqualified  Deferred  Compensation  Earnings  ($) |        | All Other Compensation ($) |  | Total ($)
|------------------------- |  | ------------------------------- | ------ | ---------------- |  | ------------------------ | - | -------------------------------------- |  | ---------------------------------------------------------------------------------- | ------ | -------------------------- |  | ---------
|Mr. Labadie, Chairman (4) |  |                                 | 14,000 |                  |  |                          | — |                                        |  |                                                                                    | 82,513 |                            |  |          
|Mr. Hainey (5)            |  |                                 | 11,000 |                  |  |                          | — |                                        |  |                                                                                    | 72,512 |                            |  |          
|Mr. Harris (6)            |  |                                 | 9,000  |                  |  |                          | — |                                        |  |                                                                                    | 72,512 |                            |  |          
|Mr. Jones (7)             |  |                                 | 12,000 |                  |  |                          | — |                                        |  |                                                                                    | 77,512 |                            |  |          
|Mr. Labate (8)            |  |                                 | —      |                  |  |                          | — |                                        |  |                                                                                    | —      |                            |  |          

| | (1) | Mr. Herald received a salary and other compensation for his services as an officer of Solitario
during the year ended December 31, 2016, which are shown below under the “Summary Compensation Table”.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | The 2016 options were granted from the 2013Plan on July 28, 2016, had a five-year term and vest
25% on grant date and 25% on the next three anniversary dates. The assumptions used in determining our 2016 grant date fair value
are based upon a Black-Scholes model using a five year term, historical volatility of 63%, and a risk-free interest rate of 0.9%.
Mr. Harris and Mr. Hainey each received 145,000 options, Mr. Labadie received 165,000 options and Mr. Jones received 155,000 options.
All options were granted with an exercise price of $0.72 per share being the closing share price as quoted on the NYSE MKT on July
28, 2016, the date of grant. On August 24, 2016, the holders of options to acquire Solitario common stock voluntarily surrendered
for cancellation all options previously granted to such persons pursuant to the 2013 Plan. Solitario cancelled the options upon
surrender. As a result, there are no outstanding options under the 2013 Plan as of December 31, 2016.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | All options granted to directors during 2016, were subsequently cancelled, No options are outstanding
at December 31, 2016.
| | --- | ---------------------------------------------------------------------------------------------------------------------------

| | (4) | Mr. Labadie is also Chairman of the Compensation Committee and has no stock options outstanding
at December 31, 2016.
| | --- | ---------------------------------------------------------------------------------------------------------------------

| | (5) | Mr. Hainey was the Audit Committee Chairman and resigned from the Board effective December 31,
2016 and has no stock options outstanding at December 31, 2016.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (6) | Mr. Harris is Chairman of the Corporate Governance and Nominating Committee and has no stock options
outstanding at December 31, 2016.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------

| | (7) | Mr. Jones was the Vice Chairman of the Board and resigned from the Board on November 11, 2016
and has no stock options outstanding at December 31, 2016.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | (8) | Mr. Labate joined the Board on December 22, 2016, was appointed Audit Committee Chairman and received
no stock options or director fees during the year ended December 31, 2016.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Compensation
Committee



On June 27, 2006, the Board approved
the charter for and formed the Compensation Committee. A current copy of the Compensation Committee charter is available on the
Company website at www.solitarioxr.com. Mr. Labadie, Mr. Labate and Mr. Harris are the members of the Compensation Committee. The
Compensation Committee met three times during 2016.

The primary purposes of the Compensation
Committee are to (a) review from time to time and approve the overall management evaluation and compensation policies of Solitario;
(b) review and approve goals and objectives relevant to the compensation of the executive officers, including the chief executive
officer, of Solitario and evaluate the performance of Solitario's executive officers; (c) set the compensation of the executive
officers of Solitario, in light of the Compensation Committee's review; (d) review, approve and periodically evaluate Solitario's
compensation and other benefit plans, including incentive compensation and equity-based plans and programs for non-employee directors,
executive officers and senior management, and make recommendations as necessary; (e) review and approve any amendments and modifications
to any such plan or program requiring approval of the Board, subject to applicable regulatory and shareholder approval requirements;
(f) review and approve the granting of options, restricted stock, stock appreciation rights and other equity-based grants to Solitario's
non-employee directors, executive officers and senior management consistent with the Company’s incentive compensation plans
and programs and compensation and retention strategy, subject to ratification by the Board; (g) review and approve plans of the
Company for management development and senior managerial succession; (h) oversee compliance with the applicable compensation reporting
requirements of the SEC and (i) conduct an annual performance self-evaluation of the Compensation Committee and prepare an annual
report thereon to the Board. The Compensation Committee has not engaged compensation consultants but has the authority to do so
under the Compensation Committee charter. Further, the Compensation Committee may form, and delegate authority to, subcommittees
when appropriate. The processes and procedures used for the consideration
and determination of executive compensation are described above under "Compensation Discussion and Analysis.”

The scope and authority of the Compensation
Committee, including the role of executive officers and compensation consultants in determining or recommending the amount and
form of compensation and the ability of the Compensation Committee to delegate authority, are more fully described in the Compensation
Committee charter.



14





Compensation Committee Interlocks and Insider Participation

Mr. Labadie, Mr. Labate and Mr. Harris
are the members of the Compensation Committee and are “independent” in accordance with the definition of independence
set forth in the NYSE-MKT Company Guide. No member of the Compensation Committee is currently, or has been an officer or employee
of Solitario for the last three years or had a relationship with Solitario required to be disclosed pursuant to Item 404 of Regulation
S-K.

Compensation Committee
Report

The Compensation Committee has reviewed,
evaluated and discussed the (i) allocation of executive compensation, including the allocation of compensation between salary paid
in cash and deferred compensation in the form of stock option grants and awards; (ii) goals and objectives of our executive compensation
including the need to be competitive with peer companies to retain and attract the best available executive talent; (iii) existing
elements of executive compensation including salary, bonus and stock options, and (iv) performance of our existing executives,
including our CEO against general targets and goals including budgets, exploration activities and success, the performance of our
stock and other measures. Neither the Compensation Committee nor management has engaged any compensation consultants in determining
or recommending the amount or form of executive or director compensation in the last year. During 2016, the Company hired an independent
consultant to review the Company’s administration of its equity compensation plans, including the related internal controls
over its compensation plan practices as well as to provide recommendations on best practices in administering its equity compensation
plans. The Company reviewed and implemented the recommendations of the independent consultant and these are included and incorporated
into the Compensation Discussion and Analysis, above. The Compensation Committee has reviewed recommendations prepared by our CEO
for levels of compensation for Mr. Hunt, our Chief Operating Officer and Mr. Maronick, our Chief Financial Officer. The Compensation
Committee has reviewed and discussed with management the Company's Compensation
Discussion and Analysis section of this Annual Report. Based on such review and discussions, the Compensation Committee has recommended
to the Board of Directors that the Compensation Discussion and Analysis be included in the Company's Annual Report on Form 10-K
for the year ended December 31, 2016.

COMPENSATION COMMITTEE
               Brian Labadie, Chairman
               Leonard Harris
               John Labate



Item 12. Security Ownership of Certain Beneficial Owners and
Management and Related Stockholder Matters



Equity Compensation Plan Information



The information on Solitario’s equity
compensation plans as of December 31, 2016 is included in Item 5 of Part II of the Annual Report on Form 10-K “Market for
Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” and is further described
in Note 9, “Employee Stock Compensation Plans” in Item 8, Financial Statements and Supplementary Data of the Annual
Report on Form 10-K.



Security Ownership of Certain Beneficial Owners and Management



To our knowledge, as of April
25, 2017, no person beneficially owns, directly or indirectly, or exercises control or direction over, more than five percent
of our issued and outstanding Common Stock with the exception of Newmont Mining Corporation of Canada Limited, which directly owns
2,700,000 shares representing approximately 7.0 percent of our issued and outstanding Common Stock.

The following table sets forth, as of
April 25, 2017, the beneficial ownership of our outstanding Common Stock by each
of our shareholders owning more than five percent, our directors, each Named Executive Officer and all of our executive officers
and directors as a group. Unless otherwise indicated, the persons listed in the table below have sole voting and investment powers
with respect to the shares indicated. Except as indicated below the mailing address for each person is 4251 Kipling Street, Suite
390, Wheat Ridge, CO 80033.



15







|Name and Address of Beneficial Owner                                                           |  | Amount and Nature of Beneficial Ownership*(1) |           | Percent of Class*
|---------------------------------------------------------------------------------------------- |  | --------------------------------------------- | --------- | -----------------
|John Labate, Director                                                                          |  |                                               | —         |                  
|Leonard Harris, Director                                                                       |  |                                               | 67,476    |                  
|Christopher E. Herald, CEO and Director                                                        |  |                                               | 1,505,000 |                  
|Brian Labadie, Director                                                                        |  |                                               | 192,857   |                  
|Walter H. Hunt, COO                                                                            |  |                                               | 391,962   |                  
|James R. Maronick, CFO                                                                         |  |                                               | 583,048   |                  
|All directors and executive officers as a group                                                |  |                                               | 2,740,343 |                  
|Newmont Mining Corporation of Canada 20 Eglinton Ave West, Suite 1900 Toronto, Ontario M4R 1K8 |  |                                               | 2,700,000 |                  



*     Calculated in
accordance with Rule 13d-3 under the Exchange Act and Item 403of Regulation S-K.

**     Indicates holdings of less than 1%.

(1)     None
of our directors or Named Executive Officers beneficially own any shares of Common Stock that may by acquired under options granted
pursuant to the 2013 Plan or the 2006 Plan.



Potential Payments upon Termination or Change in Control



As noted under "Compensation Discussion
and Analysis" above, the Company entered into certain change in control agreements on March 14, 2007 with the following Named
Executive Officers: Christopher E. Herald, James R. Maronick and Walter H. Hunt (as defined above, each such agreement being a
“CIC”). The terms of the CICs are more fully described under "Change in Control Agreements" in the "Compensation
Discussion and Analysis" section above. The potential payments to each Named Executive Officer are described below in the
event of an assumed change in control as defined in the applicable CIC as of December 31, 2016.

|Name                       |  | Salary(1) |         | Stock option vesting(2) |  | Tax gross up(3) |   | Total
|-------------------------- |  | --------- | ------- | ----------------------- |  | --------------- | - | -----
|Christopher E. Herald, CEO |  | $         | 502,500 |                         |  | $               | — |      
|James R. Maronick, CFO     |  |           | 375,000 |                         |  |                 | — |      
|Walter H, Hunt, COO        |  |           | 407,500 |                         |  |                 | — |      



| | (1) | Two and one half times base salary as of December 31, 2016. Paid as a lump sum payment.
| | --- | ---------------------------------------------------------------------------------------

| | (2) | None of our Named Executive Officers have any outstanding options or equity awards at December
31, 2016. Accordingly, there was no intrinsic value from the acceleration of any unvested options owned by the Named Executive
Officer as of December 31, 2016.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | The change in control provides for a gross-up for taxes in the event the combined salary and all
other compensation, triggered by a change in control, results in Excise Tax, as defined by Section 4999 of the Code. The CIC provide
for additional cash compensation to pay the Named Executive Officer for the Excise Tax, which is 20% of all compensation in excess
of the base salary amount, when the total payments, including the fair value from acceleration of vesting for unvested options,
under the CIC exceed three times base salary. We have estimated that no tax gross up would have been due or payable as of December
31, 2016 because the total compensation, including the fair value from the acceleration of any outstanding unvested options would
not exceed three times the base salary.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Item 13. Certain Relationships and Related Transactions, and
Director Independence



There are no material interests, direct or indirect,
of current directors, executive officers, or any shareholder who beneficially owns, directly or indirectly, more than 10% of the
outstanding shares of Solitario common stock, or any known associates or affiliates of such persons, in any transaction since the
beginning of the Company’s last fiscal year or in any proposed transaction which has materially affected or would materially
affect the Company and in which the amount involved exceeded $120,000.



Policy Regarding Related Party Transactions



The Board of Directors has adopted a
written Related Party Transaction Policy. Pursuant to that policy, Solitario may enter into transactions with certain "related
persons." Related persons include the Company's executive officers, directors, 5% or more beneficial owners of the Company's
Common Stock, immediate family members of these persons and entities in which one of these persons has a direct or indirect material
interest. These transactions are referred to as "related party transactions." All related party transactions are subject
to the following related party transaction policy requirements:

16







| | · | the transaction must be approved by disinterested members of the Board;
| | - | -----------------------------------------------------------------------

| | · | the Audit Committee must approve or ratify such transaction and the terms of the transaction are comparable to that which could
be attained in an arm's-length dealing with unrelated third parties; or
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | a transaction that involves compensation must be approved by the Compensation Committee.
| | - | ----------------------------------------------------------------------------------------



Director Independence

Solitario’s Board has determined
Mr. Labate, Mr. Harris, Mr. Jones and Mr. Labadie are independent members of the Board of Directors in accordance with Section
803(A) of the NYSE-MKT Company Guide.

| | · | Mr. Labate, Mr. Labadie and Mr. Harris are members of the Audit Committee.
| | - | --------------------------------------------------------------------------

| | · | Mr. Labate, Mr. Labadie and Mr. Harris are members of the Compensation Committee.
| | - | ---------------------------------------------------------------------------------

| | · | Mr. Labate, Mr. Labadie and Mr. Harris are members of the Nominating Committee.
| | - | -------------------------------------------------------------------------------



Item 14. Principal
Accounting Fees and Services



Audit Fees

The following table summarizes the aggregate
fees billed to Solitario by EKS&H LLLP for the fiscal years ended December 31, 2016 and 2015.



|                       | 2016    | 2015    
|---------------------- | ------- | --------
|Audit Fees (1)         | $40,000 | $39,000 
|Audit related fees (2) | 33,000  | 27,000  
|Tax fees (3)           | 22,000  | 37,000  
|All other fees (4)     | -       | 30,000  
|Total                  | $95,000 | $133,000



| | (1) | Fees billed for audit services in 2016 and 2015 consisted of:
| | --- | -------------------------------------------------------------

| | i. | Audit of our annual financial statements for 2016 and 2015.
| | -- | -----------------------------------------------------------

| | ii. | Consents and other services related to SEC filings.
| | --- | ---------------------------------------------------

| | (2) | Represents fees billed related to reviews of our quarterly reports for 2016 and 2015.
| | --- | -------------------------------------------------------------------------------------

| | (3) | Represents fees billed in connection with the preparation and filing of our United States federal and Colorado state income
tax returns.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------

| | (4) | All other fees in 2015 primarily include audit related fees billed for accounting and tax consultations related to the sale
of our membership interest in MH-LLC during 2015, an IRS examination of MH-LLC, transaction structuring for our former subsidiary,
Altoro Gold Corp. and our Bongará project and other matters.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Pre-approval of Audit Fees

On an annual basis the Audit Committee approves
the proposed audit services and the fees related thereto by our independent auditors in advance of the year of service in accordance
with the pre-approval policy adopted by the Audit Committee. All other fees are pre-approved on an ongoing basis as required. The
Audit Committee pre-approval policy requires that the Audit Committee determine that proposed services and related fees are required
and reasonable under the circumstances. All of the fees billed to Solitario by EKS&H LLLP during 2016 and 2015 were pre-approved
by the Audit Committee pursuant to the Audit Committee pre-approval policy. The Audit Committee considered whether the provision
of non-audit services is compatible with maintaining the principal accountant's independence and has determined that the provision
is compatible.









Item 15. Exhibits, Financial Statement Schedules



INDEX TO EXHIBITS



|Description |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|3.1         | Amended and Restated Articles of Incorporation of Solitario Exploration & Royalty Corp., as Amended (incorporated by reference to Exhibit 3.1 to Solitario’s Form 10-Q filed on August 10, 2010)                                                                                                                                                                                                            | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|3.2         | Amended and Restated By-laws of Solitario Exploration & Royalty Corp. (incorporated by reference to Exhibit 99.1 to Solitario’s Form 8-K filed on March 22, 2013)                                                                                                                                                                                                                                           | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|4.1         | Form of Common Stock Certificate of Solitario Exploration & Royalty Corp. (incorporated by reference to Exhibit 4.1 to Solitario’s Form 10-Q filed on August 7, 2008)                                                                                                                                                                                                                                       | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|10.1        | Membership Interest Purchase Agreement between Solitario Exploration & Royalty Corp., Ely Gold & Minerals, Inc., DHI Minerals (U.S.) Ltd., and Waterton Nevada Splitter LLC dated June 10, 2015 (incorporated by reference to Exhibit 10.1 to Solitario’s Form 8-K filed on June 12, 2015)                                                                                                                  | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|10.2        | Waterton Commitment Letter Agreement between Solitario Exploration & Royalty Corp. and Waterton Precious Metals Fund II Cayman, LP dated June 10, 2015 (incorporated by reference to Exhibit 10.2 to Solitario’s Form 8-K filed on June 12, 2015)                                                                                                                                                           | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|10.3        | Consent and Waiver between Solitario Exploration & Royalty Corp., Ely Gold & Minerals, Inc., and DHI Minerals (U.S.) Ltd. dated June 10, 2015 (incorporated by reference to Exhibit 10.3 to Solitario’s Form 8-K filed on June 12, 2015)                                                                                                                                                                    | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|10.4        | 2013 Solitario Exploration & Royalty Corp. Omnibus Stock and Incentive Plan (incorporated by reference to Exhibit 10.2 to Solitario’s Form 8-K filed on June 20, 2013)                                                                                                                                                                                                                                      | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|10.5        | Alliance Agreement, dated January 18, 2005, between Solitario Resources Corporation and Newmont Overseas Exploration Limited (incorporated by reference to Exhibit 99.1 to Solitario's Form 8-K filed on January 20, 2005)                                                                                                                                                                                  | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|10.6        | Amended and Restated Royalty Grant, dated January 18, 2005, between Solitario Resources Corporation and Minera Los Tapados S.A. (incorporated by reference to Exhibit 99.3 to Solitario's Form 8-K filed on January 20, 2005)                                                                                                                                                                               | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|10.7        | Change in Control Severance Benefits Agreement between Solitario Resources Corporation and Christopher E. Herald, dated as of March 14, 2007 (incorporated by reference to Exhibit 99.1 to Solitario's Form 8-K filed on March 14, 2007)                                                                                                                                                                    | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|10.8        | Change in Control Severance Benefits Agreement between Solitario Resources Corporation and James R. Maronick, dated as of March 14, 2007 (incorporated by reference to Exhibit 99.2 to Solitario's Form 8-K filed on March 14, 2007)                                                                                                                                                                        | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|10.9        | Change in Control Severance Benefits Agreement between Solitario Resources Corporation and Walter W. Hunt, dated as of March 14, 2007 (incorporated by reference to Exhibit 99.3 to Solitario's Form 8-K filed on March 14, 2007)                                                                                                                                                                           | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|10.10       | Framework Agreement for the Exploration and Development of Potential Mining Properties, related to Solitario's 100% owned Bongará project in Peru between Minera Bongará S.A., Minera Solitario Peru S.A.C., Solitario Resources Corporation, and Votorantim Metais – Cajamarquilla S.A., dated March 24, 2007 (incorporated by reference to Exhibit 10.2 to Solitario's Form 8-K filed on October 4, 2007) | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 
|14.1        | Code of Ethics for the Chief Executive Officer and Senior Financial Officer (incorporated by reference to Exhibit 99.1 to Solitario's Form 8-K filed on July 18, 2006)                                                                                                                                                                                                                                      | 
|            |                                                                                                                                                                                                                                                                                                                                                                                                             | 









| |      |   
| | ---- | --
| | 21.1 | **
| |      |   
| | 23.1 | **
| |      |   
| | 24.1 | **
| |      |   
| | 31.1 | * 
| |      |   
| | 31.2 | * 
| |      |   
| | 32.1 | * 
| |      |   
| | 101  | **
| |      |   

* Filed herewith

** Exhibit was previously filed
with the original Annual Report for the year ended December 31, 2016.



17









SIGNATURES



Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.



|SOLITARIO EXPLORATION & ROYALTY CORP.
|-------------------------------------
|                                     
|By:                                  
|                                     
|                                     
|Date:                                
|                                     





Pursuant to the requirements of the Securities
Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities
and on the dates indicated.





|Signature                                              |                                                                     | Title                                      | Date          
|------------------------------------------------------ | ------------------------------------------------------------------- | ------------------------------------------ | --------------
|                                                       |                                                                     |                                            |               
|/s/                                                    |                                                                     |                                            |               
|Christopher E. Herald,
        Chief Executive Officer |                                                                     | Principal Executive Officer and  Director  | April 25, 2017
|                                                       |                                                                     |                                            |               
|/s/                                                    |                                                                     |                                            |               
|James R. Maronick, 
Chief Financial Officer            |                                                                     | Principal Financial and Accounting Officer | April 25, 2017
|                                                       | |
   |
   |
   |
   |
   |
   |
   |
   |
   |
   |
   |
   |
   || |                                            |               
|/s/                                                    |                                                                     |                                           
|John Labate **                                         |                                                                     |                                           
|                                                       | A majority of                                                       |                                           
|/s/                                                    | the Board of                                                        | April 25, 2017                            
|Brian Labadie **                                       | Directors                                                           |                                           
|                                                       |                                                                     |                                           
|/s/                                                    |                                                                     |                                           
|Leonard Harris **                                      |                                                                     |                                           
|                                                       |                                                                     |                                           
|                                                       |                                                                     |                                           
|                                                       |                                                                     |                                           
|                                                       |                                                                     |                                           



**By James R. Maronick, attorney-in-fact
pursuant to power of attorney granted in the Original Filing.