Fauro prospect licence update

Solomon Gold PLC
04 March 2008

4 March, 2008

Announcement to London Stock Exchange

Solomon Gold plc



UPDATE ON FAURO ISLAND APPLICATION FOR PROSPECTING LICENCE



Solomon Gold Limited wishes to advise that it has been notified that the
Minister for Mines Energy and Rural Electrification, Solomon Islands has
rejected the Company's application for a Prospecting licence over Fauro Island
in the Shortland Islands, north west Solomon Islands in the Western Provinces,
south of Bougainville, PNG. The Company does not believe that the decision was
taken in accordance with the Mines and Minerals Act and has taken steps to see
the refusal reversed. This has included seeking and being granted an interim
injunction in the High Court of Solomon Islands on 29 February 2008. Solomon
Gold intends to present its case to the Minister at the earliest possible
opportunity. This does not include the Sutakiki prospect which is currently
being explored by Solomon Gold.





By order of the Board
DP Corn
Company Secretary



Contacts:


Mr Duncan Cornish
Secretary
Tel: [phone] or [e-mail]


Mr Stephen Weir
RFC Corporate Finance
Nominated Advisor
Tel [phone] or [e-mail]




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