Mongolian Supreme Court Affirms Decision in Solomon Expropriation Case

Uranium Exploration Licences Renewed

Armstrong, BC - Monday, December 21^st, 2009. Solomon Resources Limited (SRB: TSX-V) is pleased to report that the Company has received the written decision of the Administrative Division of the Supreme Court of Mongolia affirming the ruling of a lower court in Solomon's action in expropriation against the Mongolian Cadastral Office. 

Solomon filed a Statement of Claim in the Administrative Court of Mongolia on January 22^nd, 2009 seeking injunctive relief from:

• the expropriation of certain of the Company's mineral tenures in Mongolia, 
• the refusal of the Cadastral Office and the Mineral Resource and Petroleum Authority of Mongolia (MRPAM) to issue mineral licences to the Company pursuant to an Order of Judge Tsogt of the City Administrative Court of Mongolia dated September 30^th, 2008 and
• the attempt by the Head of the Cadastral Office and the Chairman of MRPAM to improperly transfer the expropriated licences to Cogegobi LLC, a subsidiary of Areva NC.

On October 10^th, 2009 Judge S. Munkhjargal ruled that the Mongolian Cadastral office clearly violated the rights of Solomon in not dealing with the various licence applications according to law. Judge Munkhjargal ruled that the various orders issued by the Cadastral Office and MRPAM attempting to cancel Solomon's licence applications and restore those of Cogegobi were illegal. Munkhjargal ordered MRPAM (now called the Mineral Resource Authority of Mongolia) and the Cadastral Office to settle the applications of Solomon Resources Mongolia and Cogegobi in accordance with Mongolian law. 

Solomon filed an appeal with the Supreme Court of Mongolia on October 30^th, 2009 seeking clarification of certain aspects of the lower court ruling and seeking greater clarity in the procedural order given to the Cadastral Office.

In a written decision of the Mongolian Supreme Court dated November 24^th, 2009 and received by Solomon on December 15^th, 2009 Justices Puntsag, Sumya and Tungalag affirmed the ruling of the lower court and found that the manner in which the Mongolian Cadastral Office handled the various licence applications was improper. The Supreme Court further clarified the process to be followed by the Cadastral Office in resolving the disputed exploration licences in accordance with Mongolian law.

An appeal period from the Supreme Court ruling expires January 14^th, 2010.

Solomon's President Randy Rogers observed: "The affirmation of the lower court order by the Mongolian Supreme Court is an important step in our attempt to have the expropriation of our licences resolved as well as redressing the failure of the Cadastral Office to issue other licences to Solomon that have already been gazetted and paid for."

Solomon conducted an extensive surface exploration and diamond drilling program during 2007 and 2008 in the Cretaceous Ooshin Govi Basin of south-central Mongolia to follow up Soviet-era airborne spectrometer anomalies in a favourable geological environment. In total 31 diamond drill holes totalling 6457.95 meters were completed on this project at a cost of approximately $US 2,500,000. The Solomon tenures, known as the Baruunbayan Property, are located approximately 650 kilometers south of Ulaanbaatar and 135 kilometers north of the Chinese border.  

Re-registration of Uranium Exploration Licences: 

On July 16^th, 2009, the Mongolian Parliament passed new legislation to regulate the exploration, exploitation and development of uranium and other radioactive materials. Existing exploration licence holders were required to apply to the State Administrative Authority by Nov. 15^th, 2009 and to meet criteria set out in the Nuclear Energy Law, including acceptance of the state's claim to 34% or 51% ownership (depending upon state involvement in the underlying discovery) of all uranium resources. Any licences that were not re-registered by the November 15^th deadline were to be automatically suspended.

Solomon applied for re-registration for its most prospective tenure and is pleased to report that on November 12^th, 2009 the re-registration of Exploration Licence 12745X under the Nuclear Energy Law was authorized and the licence granted. The exploration licence is valid until September 27^th, 2010.

Rogers noted: "A number of companies were not granted re-registration of their exploration licences, having failed to meet the Mongolian requirements for exploration and development expertise. This acknowledgement that Solomon meets the new criteria further strengthens our prospects for a speedy resolution of our expropriation action."

Solomon is engaged in discussions with potential joint venture partners in respect of its Mongolian tenures.

Qualified Person:

Randy Rogers, M.Sc., P.Geol. a "Qualified Person" for the purposes of National Instrument 43-101, Standards for Disclosure for Mineral Projects of the Canadian Securities Administrators, and the President and Chief Operating Officer of Solomon, has verified the data disclosed herein and supervised the preparation of the information that forms the basis of the disclosure contained in this news release. 

Forward Looking Statements:

Some of the statements in this news release may contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Solomon. Actual results may differ materially from those currently anticipated in such statements.

About Solomon Resources Ltd.:

Solomon Resources Ltd. is a Canadian public company focused on the acquisition, exploration and development of quality mineral properties worldwide. Solomon is managed by a proven team of exploration geologists involved with the discovery and development of a number of significant mineral deposits including the Snip and Eskay Creek deposits in British Columbia and the Brewery Creek deposit in the Yukon Territory. 

Solomon is currently focused on the exploration of the Cry Lake Gold Project in British Columbia, the Ten Mile Creek Gold Project in the Yukon Territory, the Sleitat Tin Project in Alaska and the Baruunbaayan Uranium Project in Mongolia. 

Solomon's shares trade under the banner SRB on the TSX Venture Exchange (TSX-V).

For additional information visit Solomon's website at www.solomonresources.ca or contact:

Randall S. Rogers, President and Chief Executive Officer                    

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accept responsibility for the adequacy or accuracy of this release.