Interim Results

Solomon Gold PLC
30 March 2007


                                 30 March 2007


                                SOLOMON GOLD PLC
                       ('Solomon Gold' or the 'Company')

              INTERIM REPORT FOR THE PERIOD ENDED 31 DECEMBER 2006

HIGHLIGHTS


Sutakiki

  * Ongoing exploration suggests extensive mineralised system

  * Further geological mapping to test epithermal and porphyry style gold
    copper mineralisation


Mbetilonga

  * Further drilling will be undertaken to test porphyry copper mineralisation


Kuma

  * Signing of access agreement and grant of extended prospecting license





CHAIRMAN'S STATEMENT


The six months to 31 December 2006 have seen the Company intensify its
exploration program on Guadalcanal in Solomon Islands. The exploration effort
has been conducted in a challenging physical, socio political and market
environment which has imposed difficult operating pressures on the field and
executive teams.


Nevertheless the Company in May 2006 concluded access arrangements into the
Sutakiki Valley, 30km south east of the capital Honiara, where a mineral system,
which the directors believe has the potential to host a world-class target, was
discovered by Solomon Gold geologists. Early mapping and sampling established
the project as having the size and characteristics necessary for an ore body of
similar scale to the great bulk open cut copper gold ore bodies of the Southwest
Pacific, particularly Ok Tedi and Bougainville.


The drilling programme underway at Sutakiki is planned to intensify over the
forthcoming months. The Company has two drills currently operating at Sutakiki
and a third has been ordered. Significant progress has been made with four holes
now completed and the fifth in progress. The successful exploration of Sutakiki
was founded on the establishment of trusted relationships with the landowners in
the area. These form a sound basis for the ultimate development of a mining
operation, in the event of an economic discovery. The Sutakiki project is
growing in size with additional discoveries and opportunities being identified
particularly to the west and northwest of previous drill sites.


Since the Preliminary results announcement, dated 29 September 2006, the
Company's work at Kuma, south east of Sutakiki, has resulted in the successful
signing of an access agreement with the Landowners and the granting of the
Prospecting License over the Kuma area on Guadalcanal. This again proves the
Company's ability to negotiate successfully with both Landowners and Government
to pave the way for exploration into new and exciting areas never before
reached. We already enjoy a good working relationship with the Kuma people. The
process of educating, training and employing local Kuma people is underway and
we have commenced fieldwork in the area. An extensive mineralisation system has
already been identified and is currently being mapped and sampled.


Market conditions for exploration companies on the AIM boards of the LSE over
the last year have been difficult. However the Directors are confident that a
significant discovery has been made which may ultimately lead to the delineation
of a drill defined resource. Solomon Gold continues to seek opportunities which
will potentially add value to the Company's asset base without the high costs
typically associated with such acquisitions. The identification of and
application for prospecting licences showing lateritic nickel prospectivity in
Florida, East Guadalcanal and Makira in the Solomon Islands are examples of this
strategy of low cost asset acquisition.


The Board is confident that the Company's exploration strategy combined with
close local relationships and continued promotional effort will lead to enhanced
shareholder value in the next half year.


Cameron Wenck
Chairman
30 March 2007


OPERATIONAL UPDATE


Mbetilonga


Extensive work has been completed on the core area of the Mbetilonga prospecting
licence, 15km south of the capital Honiara. This has included soil sampling over
a large grid, detailed mapping and sampling and drilling. The Company's
geologists have determined that structure, host rocks, level of emplacement and
styles of mineralisation are the main controls on gold and copper mineralisation
in the Mbetilonga basin. Hambusimoloso, Vatuchichi and Vuralangomma are discrete
areas of copper and gold mineralisation with distinct structural controls on
mineralisation.


North east trending faults control copper mineralisation at the Hambusimoloso
copper prospect. The faults are open and fractured at surface with surface
enriched clays and mineralised boulders in landslips. Narrow flat lying quartz
veins formed in close proximity to the faults contain copper, lead and zinc
minerals, chalcopyrite, galena and sphalerite.


The Vatuchichi gold prospect is located in the centre of the Mbetilonga basin in
an area of structural tension and uplift. Hornblende and quartz rich diorites
(classically considered highly favourable indicators for porphyry copper gold
mineralisation) are emplaced at high levels and an intrusive breccia occurs on
the margin of the Hahala Diorite. East west faults are strongly mineralised and
mark the limestone contact. Porphyry copper, epithermal high and low
sulphidation gold and copper skarn mineralisation all occur in close proximity.
Anomalous tellurium values indicate a high level of emplacement/erosion in the
mineralising system.


Hornblende diorite dykes are emplaced at high levels along north east trending
faults at Vuralangomma copper prospect on the east side of the Mbetilonga basin.
Economic grade porphyry copper mineralisation was intersected in drilling, by
Utah in the early 1970's, on the margin of the porphyry and, at the nearby
Kichia prospect high sulphidation epithermal gold mineralisation is located at
Rambo Creek where a number of rock and trench samples recorded high gold values
up to 28.0g/t gold.

Further drilling will be undertaken to test porphyry copper mineralisation at
depth at Kichia and Vuralangomma along with drill testing the Rambo area for
sulphide rich gold mineralisation.


In addition the Vatuchichi headwaters require drill testing of the low sulphide
gold systems as do the Koki high sulphide gold system and skarn styles of
mineralisation and the intrusive breccia at Grovers Hill.


Drill testing of these prospects is anticipated in the next 12 months.


Sutakiki


The Sutakiki prospect was discovered by Solomon Gold in June 2006 and appears to
be a significant gold and copper system that has yet to be fully tested. Complex
structural controls define the extent of the gold rich quartz vein systems
associated with both porphyry and epithermal style gold-copper mineralisation.


Multiphase intrusives are elongated along east west faults which are intersected
by a major north east trending transform fault along Tabora Creek where veining
and mineralisation are best developed. The strongly oxidised vein sets are up to
1.5 metres wide and interspersed over 80 metres width. They are thought to
continue beneath boulder scree for at least 300 metres to the west and 200
metres to the east and up to 500m to the north, under the Sutakiki River
gravels. The veins and fracture coatings host porphyry style gold-copper
mineralisation and among a large number of grab and rock chip samples values of
up to 1090 g/t gold and 3.29% copper were recorded. Five metre composite channel
samples along lower Taburoura Creek recorded 85 metres at 0.79 g/t gold. Further
epithermal style fractured and banded quartz-carbonate veins outcropping at
higher elevations north and south of the main vein system recorded values of up
to 2.25 g/t gold.


Analytical results for the first hole drilled at Sutakiki (SK001) recorded
significant intersections of porphyry style mineralisation of 309m at 0.54 g/t
gold and 0.13% copper including 148m at 0.79 g/t gold and 0.21% copper from 291m
depth. Some higher grade intersections were recorded within this including 2m at
12.4 g/t gold at 445m depth within epithermal veins.


At surface the quartz veins pinch and swell at fault intersections. The
mineralised vein sets may be offset 100m to the north east where they outcrop in
the Sutakiki River. This will be drill tested in the current drill program.


Between the north east faults copper mineralisation, as chalcopyrite and pyrite
is fracture controlled along east west faults.


Epithermal (high level, low temperature) gold mineralisation outcropping at
higher elevations north and south of the Sutakiki River was intersected 445
meters below surface in drill hole SK001. The up thrown Suta volcanics are a
permeable host for the development of wider significant gold mineralisation at
the intrusive contact closer to surface. Gold bearing brecciated colloform veins
outcrop north and south of the Sutakiki River at higher elevations in the
headwaters of Taburoura and Valehailala Creeks. This epithermal style gold
mineralisation will be tested nearer to surface. This style of mineralisation is
exemplified at the 2m oz Gold Ridge deposit 13km to the north (not an asset of
Solomon Gold).


Geological mapping is currently being tied into the re-interpreted aeromagnetic
and radiometric data. Interpretation of the geophysical information which is
being followed up by mapping and sampling along with drilling by Solomon Gold
indicates the Sutakiki project to be extensive.


Further detailed geological mapping will aid in locating drill holes at higher
elevations to test both the epithermal and porphyry style gold copper
mineralisation. Regional geological mapping and sampling will continue to follow
up highly anomalous sampling results of up to 179 g/t gold, 1660 g/t silver,
5.05% zinc, and 2.27% copper.

Koloula


A number of limited exploration programmes have been completed at Koloula since
prospecting recommenced in December 2005. This has included a structural
analysis of the Mbina and Chikora areas, along with vein density mapping and
sampling. Drill pads have been selected and the two prospects will be drilled
subject to rig availability.


The area of gold anomalism north of Mbina Camp #1 is hosted by intermediate
intrusive rocks of the Koloula Intrusive complex and finer grained andesite of
the Suta Volcanics. The rocks are strongly fractured and the anomalism is
broadly coincident with abundant pyrite as fracture coatings, fissure infill
veins and less commonly fine stockwork and finely disseminated within the host
rocks. The anomalous gold zone in particular is coincident with strong pervasive
silica-sericite-clay alteration and haloed by a much broader propylitic zone of
chlorite-epidote-pyrite alteration.


Close inspection of the alteration zones show strong structural control. Strong
alteration is predominantly peripheral to the main north east trending transform
fault structures, the same structure that runs through the Sutakiki project 5km
to the north east. The width of alteration zones varies from fine selvages of
less than 1cm up to zones more than 10m wide.


It is believed that previous drilling by Utah at Mbina in the early 1970's was
not sufficiently deep and may have targeted transported copper anomalism.
Additionally gold was not assayed for in the drilling samples. Solomon Gold
drilling will target the intersection of the north east trending structure with
this anomaly at depth.


Utah tested the central Chikora porphyry with vertical holes which ended in
copper mineralisation. A deep inclined drill hole will be targeted beneath the
central area of the porphyry.


Kuma


A large number of orange-red, iron oxide coated boulders have been observed in
the Kuma River from the helicopter by Solomon Gold geologists since 1996.
Oxidized outcrops exposed in Alimuno Creek, a tributary of the Kuma River, were
thought to be the source of the boulders but fieldwork could not be undertaken
prior to March 2007 when landowner agreements were finally negotiated and
permission was granted to begin fieldwork on the project.


The pyritic boulders were strongly silica-clay-pyrite altered intrusives and
these were traced to outcrops in the Alimuno and Kolosecaseca (tributary of
Alimuno) Creeks.


There is a fine grained clay-pyrite altered porphyry intruding limestone along a
north west trending shear zone. The limestone is recrystallised and brecciated
and contains banded magnetite, garnets and sulphides exhibiting very good skarn
potential.


Rock float and outcrop sampling along with reconnaissance mapping of the main
drainages has located an outcropping mineralised intrusion associated with an
extensive leached cap. North trending faults cutting the cap show alteration
pyrite and arsenopyrite mineralisation and acid leaching features suggestive of
concealed gold mineralisation. An extensive leached cap over the area has been
located and initially mapped and sampled. Additionally a quartz diorite similar
to the Sutakiki intrusives has been located peripheral to the leached cap.
Mapping and sampling of these prospective areas is underway to define drill
targets as soon as possible.


CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2006

                                                                  Six months  Six months  Period* to
                                                                  to 31 Dec   to 31 Dec   30 June
                                                                  2006        2005        2006
                                                         Notes    A$          A$          A$
Continuing operations
Revenue                                                  7        -           -           -
Cost of sales                                                     -           -           -
Gross Profit                                                      -           -           -

Other operating income                                            3,278       72,924      72,924
Administrative expenses                                           (611,941)   (155,804)   (908,064)
Exploration costs written off                                     -           -           (10,000)
Operating loss                                                    (608,663)   (82,880)    (845,140)

Finance income - net                                              179,223     13,685      192,818
Loss for the period                                               (429,440)   (69,195)    (652,322)




                                                                  Six months  Six months  Twelve months
                                                                  to 31 Dec   to 31 Dec   to 30 June
                                                                  2006        2005        2006
                                                         Notes    A$          A$          A$
Basic and diluted loss per ordinary share
- basic and diluted                                      5        (0.0160)    (0.0119)    (0.0431)

*Period is from 11 May 2005 to 30 June 2006


CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2006

                                                                31 Dec        31 Dec      30 June
                                                                2006          2005        2006
                                                       Notes    A$            A$          A$
Assets
Property, plant and equipment                                   272,050       50,020      71,189
Intangible assets                                               3,776,726     956,651     2,201,948
Total non-current assets                                        4,048,776     1,006,671   2,273,137

Other receivables and prepayments                               348,595       51,164      257,677
Other (IPO Costs)                                               -             174,374     -
Cash and cash equivalents                                       6,714,363     552,522     9,077,456
Total current assets                                            7,062,958     778,060     9,335,133

Total assets                                           2        11,111,734    1,784,731   11,608,270

Equity
Issued share capital                                            631,679       397,129     631,679
Share premium                                                   10,752,408    1,316,056   10,752,408
Other reserves                                                  423,616       -           389,874
Retained losses                                                 (1,081,762)   (68,919)    (652,322)
Total equity                                                    10,725,942    1,644,266   11,121,639

Liabilities
Trade and other payables                                        385,792       140,465     486,631
Interest-bearing loans and borrowings                           -             -           -
Total current liabilities                                       385,792       140,465     486,631
Total liabilities                                               385,792       140,465     486,631

Total equity and liabilities                                    11,111,734    1,784,731   11,608,270




CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

                             Note  Share       Share       Share      Warrants Retained    Total
                                   capital     premium     option     reserve  loss
                                                           reserve A$ A$                   A$
                                   A$          A$                              A$
Balance at 1 July 2005             397,129     1,316,056   -          -        276         1,713,461
Loss for the period                -           -           -          -        (69,195)    (69,195)
Balance 31 Dec 2005                397,129     1,316,056   -          -        (68,919)    1,644,266
Loss for the period                -           -           -          -        (583,402)   (583,402)
Adjustment to share capital        234,550     9,436,352   -          -        -           9,670,902
Employee share option
scheme:
- value of services provided       -           -           217,071    172,803  -           389,874
Balance 30 June 2006               631,679     10,752,408  217,071    172,803  (652,322)   11,121,639
Loss for the period                -           -           -          -        (429,440)   (429,440)
Employee share option
scheme:
- value of services provided       -           -           33,742     -        -           33,742
Balance 31 Dec 2006          3     631,679     10,752,408  250,813    172,803  (1,081,762) 10,725,942




CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 31 DECEMBER 2006

                                                                 Six months to Six months  Period* to
                                                                 31 Dec        to 31 Dec   30 June
                                                                 2006          2005        2006
                                                         Notes   A$000         A$000       A$000
Cash flows from operating activities

Operating loss from continuing operations                        (429,440)     (68,919)    (652,322)

Depreciation                                                     11,553        3,694       12,290

Share based payment expense                              4       33,742        -           217,071
(Increase)/decrease in other receivables and prepayments         (90,918)      (221,448)   (253,587)

(Decrease)/increase in trade and other payables                  (188,519)     (209,170)   (23,608)

Forgiveness of loan liability                                    (72,924)      (72,924)    (72,924)

Cash used in operations                                          (736,506)     (568,767)   (773,080)

Net cash outflow from operating activities                       (736,506)     (568,767)   (773,080)

Cash flows from investing activities
Acquisition of property, plant and equipment                     (212,414)     (42,382)    (72,147)

Acquisition of intangible assets                                 (1,574,778)   (296,415)   (1,541,712)

Payment for subsidiaries net of cash acquired                    -             17,497      17,497

Net cash (outflow)/inflow from investing activities              (1,787,192)   (321,300)   (1,596,362)

Cash flows from financing activities
Proceeds from the issue of ordinary share capital                -             1,442,589   13,240,362

Refund/(payment) of issue costs                                  160,604       -           (1,793,464)

Net cash inflow from financing activities                        160,604       1,442,589   11,446,898

Net (decrease)/(increase) in cash and cash equivalents           (2,363,093)   552,522     9,077,456
Cash and cash equivalents at beginning of period                 9,077,456     -           -

Cash and cash equivalents at end of period                       6,714,363     552,522     9,077,456

*Period is from 11 May 2005 to 30 June 2006



Notes to the Consolidated Financial Statements


NOTE 1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS


The consolidated financial statements are presented in Australian dollars ('A$')
and have been prepared on the historical cost basis or the fair value basis,
where the fair valuing of relevant assets and liabilities has been applied.


The Company was incorporated on 11 May 2005. The Group has elected, from
incorporation, to prepare annual consolidated financial statements in accordance
with IFRS.


The interim financial information set out on pages 5 to 8 have been prepared on
the same basis and using the same accounting policies as were applied in drawing
up the company's statutory financial statements for the year ended 30 June 2006.


The financial information for the six months ended 31 December 2006 is
unaudited. In the opinion of the directors the financial information for this
period presents fairly the financial position, results of operations and cash
flows for the period in conformity with generally accepted accounting
principles. The financial information for the twelve months ended 30 June 2006
has been derived from the Group's audited financial statements for the period as
filed with the Registrar of Companies. It does not constitute the financial
statements for that period. The auditors' report on the statutory financial
statements for the period ended 30 June 2006 was unqualified and did not contain
any statement under Section 327(2) or (3) of the Companies Act 1985.


In common with many exploration companies, the Company raises finance for its
exploration and appraisal activities in discrete tranches. Further funding is
raised as and when required. When any of the Group's projects move to the
development stage, specific financing will be required.


The directors are of the opinion that a capital raising during 2007 will be
required to supplement existing reserves so as to ensure the Company has
adequate cash reserves to meet its planned accelerated exploration and appraisal
activities for the next 12 months. Whilst the directors are confident that such
funding will be available there can be no guarantee that this will be the case.



NOTE 2 SEGMENT REPORTING


The Group currently operates one business and geographical segment being mineral
exploration in Solomon Islands.



NOTE 3 CAPITAL AND RESERVES


(a) Shares issued

During the period ended 31 December 2006 no ordinary shares were issued.


(b) Share options and warrants

The Company issued share options in September 2006 (see note 4 for details).


(c) Other reserves

A share option reserve includes an expense based on the fair value of share
options issued since February 2006. A separate warrants reserve holds the
cumulative expense based on the fair value of the 326,000 warrants issued to
Williams de Broe (renamed Evolution Securities Limited).


(d) Dividends

The directors do not recommend the payment of a dividend.



NOTE 4 SHARE BASED PAYMENTS


The Company granted 650,000 share options to directors and management on 12
September 2006 at exercise prices between 50 pence and 100 pence per ordinary
share. The closing price of the Company's shares on the previous day was 24.5
pence. The options are exercisable (ie.vest) between 1 January 2007 and 1
January 2011 and expire between 1 January 2010 and 1 January 2011. The share
options granted on 12 September 2006 had a total fair value of A$61,403 with
A$33,742 being expensed during the half year ended 31 December 2006.





NOTE 5 LOSS PER SHARE


The calculation of total loss per ordinary share on total operations is based on
losses of A$429,440 (six months to 31 December 2005: A$69,195 and period to 30
June 2006: A$652,322) and the weighted average number of ordinary shares
outstanding of 26,825,001 (5,838,452 for the six months to 31 December 2005 and
15,122,193 period to 30 June 2006). There is no difference between the diluted
loss per share and the loss per share presented as the share options in issue
were not considered dilutive.


At 31 December 2006 there were 2,389,997 (30 June 2006: 1,739,997, and 31
December 2005: 0) share options on issue.



NOTE 6 COMMITMENTS


As noted in the Company's 2006 Annual Report, pursuant to a contract for the
provision of a helicopter to assist in exploration and drilling, the Group has a
commitment to pay A$720,000 (in equal monthly payments) between 12 May 2006 and
12 May 2007. The commitment relates to a minimum usage (flying hours) of the
helicopter over the commitment period. The remaining commitment at 31 December
2006 was A$120,000. The Group expects to utilise the minimum flying hours over
the remaining commitment period.



NOTE 7 RELATED PARTIES


a) Transactions with Directors and Director-Related Entities


(i) Solomon Gold Plc has entered into an Administration and services agreement
with D'Aguilar Gold Ltd, an entity associated with Nicholas Mather (a director)
and Brian Moller (a director) whereby D'Aguilar Gold Ltd has agreed to provide
certain services including the provision by D'Aguilar Gold of its premises (for
the purposes of conducting the Company's business operations), use of existing
office furniture, equipment and certain stationery, together with general
telephone, reception and other office facilities (''Services''). In
consideration for the provision of the Services, the Company shall reimburse
D'Aguilar Gold Ltd for any expenses incurred by it in providing the Services.
Under the terms of the Administration and Services Agreement, D'Aguilar Gold is
required to provide its services for a period ending on 10 February 2008. The
Administration Services Agreement may be terminated upon the occurrence of an
insolvency event of the other party, a failure to remedy a material breach of
the Administration Services Agreement by the other party or upon three months
written notice to the other party. D'Aguilar Gold Ltd was paid A$8,376 for the
provision of administration, management and office facilities to the Company
during the half year.


(ii) Mr Brian Moller (a director), is a partner in the Australian firm Hopgood
Ganim Lawyers. Hopgood Ganim were paid A$85,170 for the provision of legal
services to the Company during the year. There services were based on normal
commercial terms and conditions.


(iii) Solomon Gold Plc has a professional services agreement with Australian
Resource Management (ARM) Pty Ltd to provide certain management services to ARM.
During the period, A$32,256 was paid to the Company for the provision of
professional services.


b) The Company granted 650,000 share options to directors and management on 12
September 2006 as noted in Note 4 above.



NOTE 8 SUBSEQUENT EVENTS


There have been no events since the end of the financial year that impact upon
the financial report as at 31 December 2006.



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