Interim Results

Solomon Gold PLC
04 March 2008




4 March, 2008

Announcement to London Stock Exchange

Solomon Gold plc





INTERIM REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2007





CORPORATE INFORMATION



Directors

Nicholas Mather (Chief Executive Officer)

Cameron Wenck (Non-Executive Chairman)

Brian Moller (Non-Executive Director)

Dr Robert Weinberg (Non-Executive Director)



Company Secretary

Duncan Cornish



Registered Office

7 Pilgrim Street, London EC4V 6LB

United Kingdom



Registered Number 5449516



Australian Office

Level 5, 60 Edward Street, Brisbane   QLD   4000

Phone: + 61 7 3303 0660

Fax: [phone]

Email: [e-mail]

Web Site: www.solomongold.com



Auditors

PKF (UK) LLP

Farringdon Place, 20 Farringdon Road

London EC1M 3AP



Nominated Advisor

RFC Corporate Finance Ltd

Level 14, 19-31 Pitt Street

Sydney NSW 2000, Australia



Broker

Hanson Westhouse Ltd

One Angel Court, London EC2R 7H

United Kingdom



Bankers

Macquarie Bank Ltd (Brisbane Branch)

300 Queen Street, Brisbane QLD 4000

Australia



Solicitors

Faegre & Benson LLP

7 Pilgrim Street, London EC4V 6LB

United Kingdom



Australian Solicitors

Hopgood Ganim

Level 8, Waterfront Place

1 Eagle Street, Brisbane QLD 4000



Registrars

Computershare Investor Services plc

The Pavilions, Bridgwater Road

Bristol BS99 7NH





CHAIRMAN'S STATEMENT



During the six month period to the end of December 2007, Solomon Gold made its
most impressive gold discovery to date.  The Company intersected 32m @ 9.45 g/t
gold in the Valehailala Creek area of the Sutakiki Prospect, on Guadalcanal, the
main island of Solomon Islands.  The discovery, within a mineralized zone some
50 m wide, was encountered at a depth of 108 to 140 metres in drillhole SK11.
Mineralogical studies on the samples concluded that the mineralization was part
of a significant intrusive system which has encouraged Solomon Gold to explore
for extensions to the mineralization at depth and along strike.  Importantly the
mineralization in the host rocks besides the vein shows characteristics typical
of extensive zones of mineralization commonly found in large porphyry-related
mineral systems, providing the Company with more extensive targets.  To date,
two successful holes, SK 11 and SK13 have been drilled.  Unfortunately SK12 had
to be abandoned before reaching the predicted depth of the mineralized zone
owing to bad ground conditions.  The Company is awaiting assay results for SK13.
Drillhole SK14 is currently at 167 metres depth and has a total planned depth
of 500 metres.  Solomon Gold geologists have identified mineralization
associated with the main structure at Sutakiki, the Sutakiki fault, over a
strike length of 800 metres.



Since floating on AIM in February 2006 Solomon Gold has been exploring the
island of Guadalcanal, Solomon Islands, on the South West Pacific 'Rim of Fire',
the highly active earthquake and volcanic zone at the margin of the Australasian
and Pacific Continental plates.  Similar locations around the Pacific are
renowned for being highly metalliferous and hosting numerous large gold and
copper deposits.  On Guadalcanal, Solomon Gold has identified a set of
structural features which are believed to have channeled mineralizing fluids and
should be prospective for significant copper-gold deposits as a result.  The
main structure, the Guadalcanal transform fault appears to localize several
copper and gold prospects over a length of 20km in Solomon Gold's prospect
licence areas at Kolokoo, Chikora, Mbina, Sutakiki and culminates in the 2m oz
Gold Ridge gold deposit north of Solomon Gold's Sutakiki license area. The
presence of the Gold Ridge deposit, interpreted to be located on the northern
edge of the mineralized system located in Sutakiki is encouraging testimony to
the gold endowment of the system.  Solomon Gold geologists have identified a
complex mineralized area now outcropping over 30km2. Our strong view is that
this represents a highly mineralized porphyry system which is the most likely
host for a significant discovery. Encouragingly, Sutakiki is located within this
target zone.



The discovery at Sutakiki underscores the potential for a world class gold and
copper deposit in the Solomon Gold exploration tenements.  Since the discovery
work has been focused in the area on the delineation of the controlling
structures and mineralizing processes.  This has involved a very extensive
mapping and sampling program, complete with altitude differential surveys to
enable accurate positioning of the data points in rough terrain.



As part of this focused effort at Sutakiki, the company has contracted for an
airborne electromagnetic survey which is designed to show conductive sulphide
bodies and resistive quartz vein structures, in order to prioritise the many
targets which have been generated by Solomon Gold field mapping and sampling
programs.  The gold rich intersection in drillhole SK11 is sulphide rich and it
is expected that such zones will show up well on the airborne electromagnetic
survey, making it a very good diagnostic tool. It is expected that the survey
will be undertaken over an area of some 155 km2 over the Sutakiki and Koloula
valleys in late March and April 2008. The survey will also collect a new state
of the art set of magnetic data which will be interpreted along with the EM
data.



The Company currently has three drilling rigs contracted, conducting core hole
drilling in the Koloula and Sutakiki Valleys.  Recently the Company has
relocated a second drilling rig to the Sutakiki Project area to expedite the
testing of numerous targets including a zone at least 50 m wide along an 800
metre strike length.  Six additional drill pads have been prepared and the
company expects that the focused effort will deliver faster results with
improved efficiencies.



During the half year the Company drilled 4,408 metres, making a total of 9452
metres drilled on the Solomons project to date.  The Company drilled 4 holes for
1,789 metres at Mbina, 2 holes for 697 metres at Chikora and 13 holes for 6,057
metres at Sutakiki where the bulk of the effort was focused.  Extensive zones of
low grade gold mineralization were located at the Mbina prospect and the
concentration of gold in narrow, sulphide rich veins grading up to 6.7 g/t gold
in core and over 70 g/t in outcrop lends support to the airborne electromagnetic
program as a diagnostic tool.



The Company also commenced exploration work on areas prospective for nickel
laterites on Makira, East Guadalcanal and Ngella in the Floridas Group.
Nickeliferous laterites were found to exist over some 10km 2 in the Ngella area
and a detailed program of pitting, augering and sampling was conducted. The
Company is waiting completion of assay results over the main areas at Ngella.



Solomon Gold also applied for exploration areas over Fauro Island in the western
provinces, south of the Island of Bougainville, where the massive Panguna
Porphyry system is located.



Solomon Gold employs three Australian geologists, one PNG expat geologist and
four local Solomon Island geologists supported by a team of local field hands
and labourers from Villages located within the project areas. The Company enjoys
unprecedented access to areas not previously investigated by exploration crews,
based on the relationships developed between Solomon Gold plc and the local
people.

Happily the Company had no lost time injury incidents during the period and
attribute this to the high level of planning which goes into the conduct of the
field operations.



Cameron Wenck

Chairman

Date: 4 March 2008





CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2007


                                                                         Six months  Six months    Year Ended
                                                                          to 31 Dec   to 31 Dec      30 June
                                                                            2007        2006          2007
                                                                 Notes       A$          A$            A$
Continuing operations
Revenue                                                                            -           -               -
Cost of sales                                                                      -           -               -
Gross Profit                                                                       -           -               -
Other operating income                                                        60,825       3,278           3,302
Administrative expenses                                                    (858,722)   (611,941)     (1,552,102)
Exploration costs written off                                                      -           -               -
Operating loss                                                             (797,897)   (608,663)     (1,548,800)

Finance income                                                                72,449     179,223         347,154
Loss for the period                                                        (725,448)   (429,440)     (1,201,646)




                                                                         Six months  Six months   Twelve months
                                                                          to 31 Dec   to 31 Dec    to 30 June
                                                                            2007        2006          2007
                                                                 Notes       A$          A$            A$
Basic and diluted loss per ordinary share
- basic and diluted                                                5        (0.0164)    (0.0160)        (0.0448)





CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2007


                                                                        31 Dec        31 Dec        30 June
                                                                         2007          2006          2007
                                                            Notes         A$            A$            A$
Assets
Property, plant and equipment                                              252,640       272,050       273,969
Intangible assets                                                       10,552,359     3,776,726     6,799,726
Total non-current assets                                                10,804,999     4,048,776     7,073,695


Other receivables and prepayments                                        3,764,270       348,595       381,724
Cash and cash equivalents                                                3,546,668     6,714,363     3,450,530
Total current assets                                                     7,310,938     7,062,958     3,832,254

Total assets                                                  2         18,115,937    11,111,734    10,905,949


Equity
Issued share capital                                                     1,033,527       631,679       631,679
Share premium                                                           17,428,590    10,752,408    10,752,408
Other reserves                                                           1,396,576       423,616       849,251
Retained losses                                                        (2,579,416)   (1,081,762)   (1,853,968)
Total equity                                                            17,279,277    10,725,942    10,379,370


Liabilities
Trade and other payables                                                   836,660       385,792       526,579
Interest-bearing loans and borrowings                                            -             -             -
Total current liabilities                                                  836,660       385,792       526,579
Total liabilities                                                          836,660       385,792       526,579


Total equity and liabilities                                            18,115,937    11,111,734    10,905,949



Cameron Wenck

Chairman

Date: 4 March 2008





CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY


                                 Note     Share        Share       Share    Warrants  Retained loss    Total
                                         capital      premium      option    reserve
                                                                 reserve A$    A$          A$            A$
                                            A$           A$
Balance at 1 July 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                         631,679   10,752,408    250,813   172,803   (1,081,762)   10,725,942
Loss for the period                               -            -          -         -     (772,206)    (772,206)
Adjustment to share capital                       -            -          -         -             -            -

Employee share option scheme:

- value of services provided                      -            -    425,635         -             -      425,635
Balance 30 June 2007                        631,679   10,752,408    676,448   172,803   (1,853,968)   10,379,370
Loss for the period                               -            -          -         -     (725,448)    (725,448)
Adjustment to share capital                 401,848    6,831,422          -         -             -    7,233,270
Share Issue costs                                 -    (155,240)          -         -             -    (155,240)
Employee share option scheme:
- value of services provided                      -            -    547,325         -             -      547,325
Balance 31 Dec 2007               3       1,033,527   17,428,590  1,223,773   172,803   (2,579,416)   17,279,277





CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007


                                                                     Six months to Six months to   Year Ended
                                                                        31 Dec        31 Dec         30 June
                                                                         2007          2006           2007
                                                              Notes       A$            A$             A$
Cash flows from operating activities
Operating loss from continuing operations                                (725,448)     (429,440)     (1,201,646)
Depreciation                                                                26,362        11,553          28,955
Share based payment expense                                     4          547,325        33,742         459,377
(Increase)/decrease in other receivables and prepayments                    26,765      (90,918)       (124,046)
(Decrease)/increase in trade and other payables                            310,082      (27,914)          39,947
Forgiveness of loan liability                                                    -      (72,924)               -
Cash used in operations                                                    185,086     (575,901)       (797,413)

Net cash outflow from operating activities                                 185,086     (575,901)       (797,413)


Cash flows from investing activities
Acquisition of property, plant and equipment                               (5,033)     (212,414)       (231,735)
Acquisition of intangible assets                                       (3,752,633)   (1,574,778)     (4,597,778)
Payment for subsidiaries net of cash acquired                                    -             -               -
Net cash (outflow)/inflow from investing activities                    (3,757,666)   (1,787,192)     (4,829,513)


Cash flows from financing activities
Proceeds from the issue of ordinary share capital                        3,823,958             -               -
Refund/(payment) of issue costs                                          (155,240)             -               -
Net cash inflow from financing activities                                3,668,718             -               -


Net (decrease)/increase in cash and cash equivalents                        96,138   (2,363,093)     (5,626,926)
Cash and cash equivalents at beginning of period                         3,450,530     9,077,456       9,077,456
Cash and cash equivalents at end of period                               3,546,668     6,714,363       3,450,530





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 IFRSs.



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 2007.



The financial information for the six months ended 31 December 2007 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 2007
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 2007 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 Company recently completed (in December 2007) an equity fund raising that
enables it to proceed with its approved annual plan of expenditure and to
provide adequate working capital. The directors have therefore concluded that
the Group is a going concern.



The directors are of the opinion that a capital raising towards the end of 2008
may be required to supplement existing reserves so as to ensure the Company has
adequate cash reserves to meet its ongoing exploration and appraisal activities.
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



Shares issued

During the period the company issued 17,500,000 shares for a cash consideration
of A$7,233,271 (less share issue costs of A$155,240).



Share options and warrants

The share option reserve is in respect of the expense recognised in the Income
Statement based on the fair value of share options issued since February 2006.
The Company issued share options in December 2007 (see note 4 for details).



Other reserves

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).



Dividends

The directors do not recommend the payment of a dividend.





Note 4: Share Based Payments



The Company granted 1,380,000 share options to management and staff on 31
December 2007 at exercise prices between 25 pence and 75 pence per ordinary
share.  The closing price of the Company's shares on the previous day was 20
pence.  The options are exercisable between 31 December 2007 and 31 December
2010.  The share options granted on 31 December 2007 had a total fair value of
A$371,445 being fully expensed during the half year ended 31 December 2007.



On 31 December 2007, the Company also granted 500,000 share options for nil
consideration to RFC Corporate Finance Limited ('RFC'), the Company's nominated
advisor ('NOMAD'). These share options were granted at an exercise price of 20
pence per ordinary share and can be exercised up to 8 November 2010.  The share
options granted had a total fair value of A$161,898 and were fully expensed
during the half year ended 31 December 2007.





Note 5: Loss Per Share



The calculation of total loss per ordinary share on total operations is based on
losses of A$725,448 (six months to 31 December 2006: A$429,440 and period to 30
June 2007: A$1,201,646) and the weighted average number of ordinary shares
outstanding of 44,325,001 (26,825,001 for the six months to 31 December 2006 and
26,825,001 period to 30 June 2007). 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 2007 there were 4,269,997 (30 June 2007: 2,389,997, and 31
December 2006: 2,389,997) share options on issue.





Note 6: Commitments



As noted in the Company's 2007 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$772,800 (2006: A$720,000) (in equal monthly payments)
between 12 May 2007 and 12 May 2008.  The commitment relates to a minimum usage
(flying hours) of the helicopter over the commitment period. The remaining
commitment at 31 December 2007 was A$257,600 (2006: 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$12,282 (2006:
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$32,635 (2006:
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$14,031 (2006: A$32,256) was paid to the
Company for the provision of professional services.





Note 8: Subsequent Events



On 31 January 2008 the Company granted 1,000,000 share options, for nil
consideration, to directors of the Company.





By order of the Board

DP Cornish

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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