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News Release
2005


Oct 18
Solitaire Minerals Corp. Acquires Sandstone-hosted Uranium Target in Southern Alberta and an Update on Riou Lake

Solitaire Minerals Corp. Acquires Sandstone-hosted Uranium Target in Southern Alberta and an Update on Riou Lake

Tuesday, October 18, 2005

October 17, 2005: Solitaire Minerals Corp. (the Company) enters into the southern Alberta sandstone-hosted uranium area. The Company is pleased to announce that it has signed a letter of intent with Sandswamp Exploration Ltd. to purchase 100% interest in 4 metallic and industrial mineral permits collectively referred to as "The Ravenscrag Uranium Property", totaling approximately 88,000 acres.

These four permits were strategically staked to target five main continentally derived sedimentary formations, which favourably match the criteria of the worldwide geological model recognized for sandstone-hosted (roll-front) uranium mineralization. These formations include the Tertiary aged "Cypress Hills" and "Ravenscrag" sandstone formations and the Upper Cretaceous "Whitemud" and "Eastend" sandstone formations in addition to channel sands within the "Bearpaw" shale formation. All of these formations are very similar in age and material composition as the south-western Alberta "Willow Creek", "St. Mary River", and "Blood Reserve" formations already being explored by other uranium exploration companies with favourable, reported results.

The southern Alberta sandstone-hosted uranium district was quietly explored by several uranium companies in the 1970's to early 1981. The uranium price crash of the early 1980's brought a sudden stop to all efforts to find Alberta's first sandstone uranium mine. With the current and rapid increases in uranium price and a favourable long-term uranium price forecast, southern Alberta has again received the focused attention of serious uranium exploration companies. The first mineral permit in 25 years, publicly staked for uranium in southern Alberta, occurred at the start of 2005. Since then a staking rush of approximately 2.5 million acres of mineral permits has been taken in Alberta for sandstone-hosted uranium. Some of these properties held by other companies, have quickly progressed from a mere grassroots uranium project based on theory and geological comparisons to sandstone uranium producing areas of the United States, to drill-ready prospects within a short eight month span.

Solitaire Mineral Corp.'s new "Ravenscrag Uranium Property" is located in South-eastern Alberta, 160 km east of the city of Lethbridge, near the communities of Eagle Butte and Elkwater, Alberta. The eastern boundary of the property is the Saskatchewan / Alberta border. The land within the property is sparsely populated rural cattle rangeland with some grain agriculture intermixed. Paved Highways 41 and 514 cross the centre of the property while a network of well maintained graveled roads, which support the local farming and oil industries, provides access to most other parts of the property.

The historical uranium exploration highlights of this property include:

  • Two Alberta Geological Survey documented (OFR 1994-8) uranium in well water samples that returned 244 ppb U and 104 ppb U respectively, in the vicinity of a faulted zone at the Eagle Butte Structure. (Radon values were not reported for these wells).
  • A Geological Survey of Canada report of an exposed lignite seam within the Ravenscrag formation with a gamma ray log of 30 times background.
  • The Eagle Butte Structure is now understood and mapped as a greater than 10 km wide Late Cretaceous "Astrobleme" (meteorite impact site). This astrobleme deformed the local sandstone and shale bedrock in a large area radiating out from the site upon impact. This has created numerous faults and fractures locally with these sedimentary formations. Fractures and faults are favourable structures for the mineralization of uranium within a sandstone host as these fractures and faults may facilitate uranium ion carrying fluids to move into a suitable host sandstone for deposition.
Highlights for uranium exploration within these above mentioned eastern sandstone formations include:

  • A Geological Survey of Canada documented account of lignites within the Ravenscrag formation within Saskatchewan, which contained at least 0.126% (2.5 lbs/ton) U3O8.
  • A 1970 Alberta Mineral Assessment Report, which reported a 2.44 m section of carbonaceous claystone drill core with values of 0.01% U3O8.
  • Uraniferous lignites and sandstones of similar aged formations have been successfully mined within many parts of the United States and other parts of the world.
  • Many low-grade 0.15% to 0.02% sandstone-hosted uranium deposits which were too low of a grade to have been economically mined by conventional open pit or drift methods in the United States during the last Uranium Boom are now being economically mined via low impact and proven in-situ leach (water-flush) methods.
Historical estimate should not be relied upon.
Solitaire Minerals Corp.'s management team is very excited too add this Southern Alberta uranium property to its portfolio of mineral properties", said Mr. Charles Desjardins, President of Solitaire Minerals Corp. The Ravenscrag property area is noted for its mild winter weather so we will start a water and outcrop sampling program in conjunction with ground based radiometric exploration as a follow up on the historically documented uranium occurrences as soon as a formal agreement is signed.

Terms of the agreement include a payment of $12,000, and the issuance of 200,000 common shares of the Company upon exchange approval to the property vendor for 100% interest for all minerals subject to a 2% GORR of which the Company may purchase 1% back for a price of $25,000 if purchased within a two year period, $200,000 if purchased within years two to five, or $1,000,000 if purchased after year five of signing a formal agreement.

This Exploration project is being conducted under the direction of Glenn .S. Hartley P. Geol. in accordance with the regulations of National Instrument 43-101.

Riou Lake Property:

The Riou Lake Property is located in the Athabasca basin in northern Saskatchewan and is adjacent to the Riou Lake Uranium project operated by UEX Corp. and west of JNR Resources Black Lake property claims, which comprises a contiguous block of six mineral claims totaling 26,981 acres.

A regional gravity survey shows a gravity low coinciding with the scarp. This gravity low may indicate an alteration zone within the sandstone and possibly also the basement. The airborne magnetic and VLF-EM survey carried out over the property in 1996 indicate that the magnetic responses are deep and largely due to responses from metamorphic rocks. The VLF survey shows a weak response coincident with the east-southeasterly trending scarp in the sandstone (Newson, N.R., 1997). The first staked claim in the area covered the surface expression of the fault which is marked by an escarpment up to 180 feet high which extends for eight kilometers through the property. This escarpment is unique in the Athabasca Basin and could be an indication of major displacement of the Athabasca formations.

The Company is currently in preliminary discussions of a possible joint venture, as well as planning the next phase of exploration activity on the property.

Jim Kermeen, M.Sc., P.Eng, is the qualified person on the company's Riou Lake property.

Solitaire Minerals Corp. announces that pursuant to its stock option plan, the Company has granted incentive stock options to its directors, officers and consultants to purchase up to a total of 1,000,000 common shares in the capital stock of the company, exercisable for a period of two years, at a price of $0.10 cents per share.

About Solitaire Minerals Corp. Solitaire Minerals Corp is a diversified junior Canadian mineral exploration company with a specific focus on mineral properties in North America. The Company has assembled a portfolio of precious and base metal exploration prospects in Ontario and Saskatchewan. Solitaire's Ontario properties in the Red Lake/Birch-Uchi Greenstone Belt include the Baird, Heyson and Chukuni River Prospects, in which the Company has agreements to earn 100% in, but has not yet vested its interest. In addition, the Company has entered into an option agreement with another company, whereby that company may earn up to a 50% interest in the Baird Property. The Company also has an option to earn 100% in the Lateral Lake West property located in the Webb township of Ontario. In Saskatchewan, the Company has signed a purchase agreement to acquire a 100% interest in the Highrock Lake property and a 90% interest in the Riou Lake Property located in the Athabasca Basin. The Company has also acquired the Riou Lake North and South properties in which the company has 100% interest.


For additional information please contact Solitaire Minerals Corp. or visit www.solitaireminerals.com.


On Behalf of the Board of Directors
SOLITAIRE MINERALS CORP.
"Charles Desjardins"


Charles Desjardins,
Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release other than purely historical information, historical estimates should not be relied upon,including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.


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