Operations Updated

Solomon Gold PLC
26 July 2006


Solomon Gold plc - Operations Update 26/7/06


Summary and Highlights


   •Commencement of drilling on the Hambusimaloso North target (Mbetilonga)
   •Encouraging sampling results from first pass at Sutakiki
   •High grade copper - zinc skarn mineralisation identified at Vuralanggoma
    (Mbetilonga)
   •Next drill target at Hahala porphyry prospect (Mbetilonga)



Introduction


Solomon Gold plc ('Solomon Gold' or the 'Company') was admitted to AIM on 10
February pursuant to a £5m placing by Williams de Broe plc. Solomon Gold is
exploring for world class copper-gold targets on Guadalcanal, Solomon Islands.
The project area is located on the southwest Pacific Rim of Fire, which belt
hosts numerous ore bodies including Ok Tedi, Panguna (Bougainville) and Lihir.
Solomon Gold commenced a drilling program which was hampered by drilling support
and logistic issues, sample transport problems, the establishment of a sample
preparation facility, a requirement to negotiate a new helicopter service
contract, landowner negotiations and riots as result of racial tensions.


These issues have now been resolved and the Company is making important advances
in the exploration of the area.


Solomon Gold now has a more powerful helicopter at its disposal and a new
drilling contract which has provided for re-equipping and additional support for
the drilling rig by the contractor. The Company recommenced drill testing on the
Hambusimaloso target on 22 July 2006 with drill hole MB03.


A complete copy of this update may be viewed with a map on the Company's website
www.solomongold.com


Mbetilonga (PL04/05)

During the past quarter Solomon Gold field crews have continued to upgrade
mapping and sampling information in the core Mbetilonga project on Guadalcanal,
15 km south of the capital, Honiara. Two drill holes were drilled on the
southern section of the Hambusimaloso copper anomaly, a 1.3 km2 area of soil
sampling results over 1,000 parts per million copper. Only one of these holes
(MB02) adequately tested the anomaly at the drill site and the other hole (MB01)
failed to reach the target as a result of equipment failure. These issues have
been resolved with the renegotiation of the drilling contract and a new drill
target location has been identified 450 metres north of the initial drill holes.
This hole site (MB03) has been located on the basis of an interpretation of
copper and molybdenum anomalism which strengthens to the north from
Hambusimaloso, and the results from MB02. Both MB01 and MB02 returned consistent
low grade copper mineralisation which was predominantly localised in sporadic
thin veins and shears and common in fragments of mineralised volcanics and
intrusive porphyry containing visible chalcopyrite in the drill core. The holes
intersected essentially barren sediments underneath the fractured volcanics.

Hole   Azimuth  Declination     From   To     Intersection (m)  Copper grade
       degrees  degrees         (m)    (m)
MB01      030           -70     40     48                 8             0.26%
MB02      300           -70     46     66                20             0.07%



The origin of the mineralised fragments in the fractured volcanics has not yet
been determined. The geology at Hambusimaloso has not yet been resolved and the
complex package of sediments and volcanics appears to be masking the intrusive
source of the abundant copper mineralisation at surface. It appears that north
east oriented faulted and fractured zones are more broadly anomalous and that
the structural corridor on this trend between Hambusimaloso and Hahala is
therefore a priority drill target. The Company will visually assess the result
of MB03 prior to drilling further holes at this location or moving the rig to
Hahala.


At Hahala, 1.1 kilometres to the north north east of the Hambusimaloso North
drill hole MB03, the Company has outlined a high priority gold drill target, 400
x 400 metres and open to the north, coincident with a porphyry style
aeromagnetic signature, strong gold values in soil samples and outcropping
intrusive porphyry rocks. Field mapping and sampling is continuing with
extensions of the soil sampling lines to the north and west of the Hahala and
the nearby Upper Chipakalau area, prior to drill testing.


At Vuralanggoma, 5 km east of Hambusimaloso, float samples of epidote skarn
rocks rich in visible zinc and copper minerals sphalerite and chalcopyrite, have
been located and these samples assayed up to 9.8% copper. Although the outcrop
location of this material is not yet identified, the mineralisation, based on
soil sampling, occurs over a 300 x 500 metre zone. Previous drilling by Utah in
the 1970s yielded 38m at a grade of 0.34% copper in volcanic agglomerates
overlying and intruded by a diorite porphyry complex. The hole also intersected
a narrow zone of fractured and mineralised porphyritic diorite, grading 1.0%
copper at a depth of 208 metres. No gold assaying was undertaken. Regional
outcrops Strong gold anomalism in the soil sampling grid has been outlined by
Solomon Gold and it is intended that the Company drill test this anomaly, and
the copper zone located immediately west of the old Utah holes following
completion of the soil sampling grids in the area.


In addition, infill soil sampling lines are planned over the 200 metre spaced
soil sampling grid at Vurakuvekuve, south east of Hambusimaloso, to further
delineate NE trending copper - molybdenum anomalies which may signify porphyry
sources to the widespread Mbetilonga mineralisation.


Future soil sampling lines are planned to infill the area between Vatuchichi and
Hahala and between Vuralanggoma and the nearby Vuralosa prospect.


Solomon Gold management considers that soil sampling is providing the best guide
to the centre of the mineralising system.


Sutakiki (PL05/05)


At Sutakiki, initial reconnaissance mapping and sampling which commenced on 1st
June, has revealed a large intrusive porphyry system mineralised with copper and
gold. The system commences 200 metres upstream from the last sampling conducted
by Newmont geologists in 1988 and continues upstream in a south-westerly
direction for approximately 2 km, in a drainage basin approximately 2 km wide.
The mineralisation is frequently but irregularly exposed and 5 metre rock chip
channel samples across the mineralisation and any apparent structures were taken
where possible. Sixty - two samples from the central zone of mineralised
outcrops along the Sutakiki River have been assayed to date and results received
(refer discussion below). Assaying of a further 87 rock chip, 33 stream sediment
and 75 orientation soil samples has been expedited and the results are are
awaited. These samples will provide reconnaissance results over the bulk of the
area of the drainage basin at the head of the Sutakiki River.


The style of the mineralisation is a classic south west pacific copper gold
mineralised quartz hornblende diorite porphyry system with overprinted fault
controlled second and third phase epithermal quartz vein systems. The area is
roughly coincident with an extensive zone of diagnostic geophysical signatures
in magnetic and radiometric surveying conducted in 1997 by Australian Resource
Management (A.R.M.) Pty Ltd, a wholly owned subsidiary of Solomon Gold. The
faults host quartz veins yielding values up to 35.9g/t gold and 22.4 g/t silver
based on assaying to date. Composite 5 metre channel samples of mineralised
outcrop show up to 5.17g/t gold. Up to 85 metres at 0.79 g/t gold and 0.15%
copper was sampled from the best exposed section of mineralisation in the upper
Sutakiki River. Copper results range up to 0.99%. The porphyry system outcrops
in the head of the Sutakiki Valley and is surrounded by overlying altered
andesitic volcanics which show skarn mineralisation containing visible copper,
lead and zinc sulphide mineralisation.


The epithermal textures of the late stage quartz veins, proximity of the
overlying volcanics, copper to gold ratios and high tellurium assay results
suggest that outcropping rocks are positioned high in the intrusive system and
better copper and gold grades are likely to be encountered at depth within the
intrusive complex.


On the basis of these results and the presence of high order gold mineralisation
in the head of the Koloula Valley four kilometres to the south south west of the
current south western extent of the sampling at Sutakiki, Solomon Gold believes
the area covers an extensive intrusive system hosting widespread gold
mineralisation.


Solomon Gold intends to expedite the drill testing of the most obvious gold
mineralised zones at Sutakiki as soon as possible.


Kuma (APL)


Access negotiations at Kuma are continuing.


Central (PL03/05)


The discovery of the mineralisation associated with the intrusive complex at
Sutakiki has led to the identification of exploration targets in the area
approximately 8 km south west of the Gold Ridge Mine. These targets are
coincident with magnetic features suggestive of skarn mineralisation adjacent to
an intrusive complex.


General


Solomon Gold now has 10 contractors and staff geologists working on two rosters
on its projects on Guadalcanal and is well supported by local field workers with
whose communities the Company maintains a close relationship. With the re -
equipped drilling rig and revised contract, drilling rig and more powerful
helicopter Solomon Gold is planning to complete 10,000 metres of drilling on the
Mbetilonga, Koloula and Sutakiki project areas over the next 12 months. Subject
to the outcome of access negotiations and reconnaissance mapping and sampling
which would follow, drilling activities at Kuma to the south east of Sutakiki
may also be considered.


A complete copy of this update may be viewed with a map on the Company's website
www.solomongold.com .


Contact :


Abigail Singleton or Leesa Peters, Conduit PR [phone]


Nicholas Mather, CEO or Duncan Cornish ( Secretary )Solomon Gold plc +61 7
33030680




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