Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Solitario Zinc Corp. (“Solitario,” or the “Company”) is an exploration stage company as defined in Industry Guide 7, asby rules issued by the United States Securities and Exchange Commission (“SEC”). Solitario was incorporated in the state of Colorado on November 15, 1984 as a wholly-owned subsidiary of Crown Resources Corporation ("Crown"(“Crown”). In July 1994, Solitario became a publicly traded company on the Toronto Stock Exchange (the "TSX"“TSX”) through its initial public offering. Solitario has been actively involved in mineral exploration since 1993. Solitario’s primary business is to acquire exploration mineral properties or royalties and/or discover economic deposits on its mineral properties and advance these deposits, either on its own or through joint ventures, up to the development stage. At that point, or sometime prior to that point, Solitario would likely attempt to sell its mineral properties, pursue their development either on its own or through a joint venture with a partner that has expertise in mining operations, or create a royalty with a third party that continues to advance the property. Solitario is primarily focused on the acquisition and exploration of zinc-relatedprecious metal, zinc and other base metal exploration mineral properties; however, Solitario will evaluate and acquire other base and precious metal mineral exploration properties. In addition to focusing on its mineral exploration properties and the evaluation of mineral properties for acquisition, Solitario also evaluates potential strategic transactions for the acquisition of new precious and base metal properties and assets with exploration potential or business combinations that Solitario determines to be favorable to Solitario.

Solitario has recorded revenue in the past from the sale of mineral properties, including (i) the sale of certain mineral royalty properties to SilverStream SEZC, a private Cayman Island royalty and streaming company (“SilverStream”), for Cdn$600,000 in January 2019 (the “Royalty Sale”), and (ii) the sale in June 2018 of its interest in the royalty on its Yanacocha property. In addition, Solitario has received proceeds from (i) the saleproperty in 2015June of its former interest in Mount Hamilton LLC (“MH-LLC”), the owner of its former Mt. Hamilton project; (ii) the sale of a royalty on its former Mt. Hamilton project2018 and (iii) joint venture property payments. Revenues and / or proceeds from the sale or joint venture of properties or assets, although generally significant when they occur, have not been a consistent annual source of cash and would only occur in the future, if at all, on an infrequent basis.

The accompanying interim condensed consolidated financial statements of Solitario for the three and nine months ended September 30, 20202021 are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”). They do not include all disclosures required by generally accepted accounting principles for annual financial statements, but in the opinion of management, include all adjustments necessary for a fair presentation. Interim results are not necessarily indicative of results which may be achieved in the future, or for the full year ending December 31, 2020.

These financial statements should be read in conjunction with the financial statements and notes thereto which are included in Solitario’s Annual Report on Form 10-K for the year ended December 31, 2019.2020. The accounting policies set forth in those annual financial statements are the same as the accounting policies utilized in the preparation of these financial statements, except as modified for appropriate interim financial statement presentation.

Solitario faces risks related to health epidemics and other outbreaks of communicable diseases, which could significantly disrupt its operations and may materially and adversely affect its business and financial conditions.

Solitario’s business could be adversely impacted by the effects of the coronavirus (“COVID-19”) or other epidemics or pandemics. Solitario has recommended all of its employees and contractors follow government guidelines for health and safety policies for employees and contractors, including encouraging tele-commuting and working from home where possible. Solitario has evaluated the effects of the COVID-19 pandemic on its operations and since the outbreak of the pandemic has taken pro-active steps to address the impactsimpact on its operations, including reducing certain costs, in response to the economic uncertainty associated with potential risks from COVID-19. These reductions include implementing salary reductions and evaluation and reduction in certain planned 2020 exploration programs through its joint venture partners at the Florida Canyon and Lik exploration projects. Also, Solitairo has evaluated the potential impacts on its ability to access future traditional funding sources on the same or reasonably similar terms as in past periods.COVID-19 pandemic. Solitario will continue to monitor the effects of the COVID-19 pandemic on its operations, financial condition and liquidity. However, the extent to which the COVID-19 pandemic ultimately impacts Solitario’s business, including our exploration and other activities and the market for itsour securities, will depend on future developments, which are highly uncertain and cannot be predicted at this time, and include the duration, severity and scope of the outbreak and thegovernmental actions taken to contain or treat the coronavirus outbreak.

Cash equivalents include investments in highly liquid money-market securities with original maturities of three months or less when purchased. As of September 30, 2020, $404,0002021, $410,000 of Solitario’s cash and cash equivalents are held in brokerage accounts and foreign banks, which are not covered under the Federal Deposit Insurance Corporation (“FDIC”) rules for the United States.

As of September 30, 2020,2021, Solitario has $4,754,000$3,283,000 of its current assets in United States Treasury Securities (“USTS”) with maturities of 30 days2 to 12 months. In addition, at September 30, 2021, Solitario has $1,563,000 of its current assets in seventhree bank certificates of deposits (“CD’s”CDs”) with face values between $100,000 and $250,000 and $100,000 recorded at their total fair value of $601,000. The CDs have maturities between five and 20of 15 days to seven months. The USTS and CD’sCDs are recorded at their fair value, based upon quoted market prices. The USTS are not covered under the FDIC insurance rules for United States deposits. Solitario’s USTS and CD’sCDs are highly liquid and may be sold in their entirety at any time at their quoted market price and are classified as a current asset.

The calculation of basic earnings (loss) per share is based on the weighted average number of shares of common stock outstanding during the three and nine months ended September 30, 20202021 and 2019.

Potentially dilutive shares related to outstanding common stock options for 5,513,000 Solitario common shares were excluded from the calculation of diluted loss per share for the three and nine months ended September 30, 2021 because their effects were anti-dilutive. Potentially dilutive shares related to outstanding common stock options for 5,698,000 Solitario common shares were excluded from the calculation of diluted loss per share for the three and nine months ended September 30, 2020 because thetheir effects were anti-dilutive. Potentially dilutive shares related to outstanding common stock options for 4,373,000 Solitario common shares were excluded from the calculation of diluted loss per share for the three and nine months ended September 30, 2019 because the effects were anti-dilutive.

As part of the Royalty Sale to SilverStream for Cdn$600,000. On closing of the Royalty Sale,in 2019, Solitario received Cdn$250,000 in cash and a convertible note from SilverStream in the principal amount of Cdn$350,000 (the “SilverStream Note”). The SilverStream Note, as amended, was originally due December 31, 2019,on June 30, 2020, accrued 5%8% per annum simple interest, payable on a quarterly basis, and was convertible into common shares of SilverStream, at the discretion of SilverStream, by providing Solitario a notice of conversion. In December of 2019, Solitario and SilverStream agreed to extend the due date of the SilverStream Note to June 30, 2020, and to increase the interest rate to 8% per annum simple interest. During the nine months ended September 30, 2019,2020 Solitario recorded mineral property revenueinterest income of $408,000$7,000 from the Royalty Sale, consisting of the fair value of the cash received on the date of the sale of $185,000 and the fair value of the SilverStream Note on the date of the sale of $263,000 less the carrying value of the royalties sold of $40,000.

On May 19, 2020, SilverStream completed an initial public offering, including changing its name to Vox Royalty Corp. (“Vox”), and, in accordance with the terms of the SilverStream Note, issued Solitario 137,255 shares of common stock of Vox in full satisfaction of obligations owed under the SilverStream Note. In accordance with the terms of the SilverStream Note, the 137,255 shares were issued at a price of Cdn$2.55 per share, which was at a 15% discount to the initial public offering price of Cdn$3.00 per share. Solitario recorded its initial investment in the Vox common shares at the initial public offering price, or a total of Cdn$412,000 or $294,000. Solitario recorded other income of $44,000 for the gain on the conversion of the SilverStream Note during the nine months ended September 30, 2020.

In connection with the acquisition of its interest in the Lik project in 2017, Solitario recorded an asset retirement obligation of $125,000 for Solitario’s estimated reclamation cost of the existing disturbance at the Lik project. This disturbance consists of an exploration camp including certain drill sites and access roads at the camp. The estimate was based upon estimated cash costs for reclamation as determined by the permitting bond required by the State of Alaska for which Solitario has purchased a reclamation bond insurance policy in the event Solitario or its 50% partner, Teck, do not complete required reclamation.

Solitario has not applied a discount rate to the recorded asset retirement obligation as the estimated time frame for reclamation is not currently known, as reclamation is not expected to occur until the end of the Lik project life, which would follow future development and operations, the start of which cannot be estimated or assured at this time. Additionally, no depreciation will be recorded on the related asset for the asset retirement obligation until the Lik project goes into operation, which cannot be assured.

Solitario’s investments in marketable equity securities are carried at fair value, which is based upon quoted prices of the securities owned. The cost of marketable equity securities sold is determined by the specific identification method. Changes in marketfair value are recorded in the condensed consolidated statementstatements of operations. During the three months ended September 30, 2021, Solitario recorded an unrealized gain on marketable equity securities of $50,000. During the nine months ended September 30, 2021, Solitario recorded an unrealized loss on marketable equity securities of $220,000. During the three and nine months ended September 30, 2020, Solitario recorded an unrealized gain on marketable equity securities of $333,000 and $584,000, respectively. During the three and nine months ended

At September 30, 2019,2021 and December 31, 2020 Solitario recorded an unrealized loss onowns the following marketable equity securities of $347,000 and $736,000, respectively.

The following tables summarize Solitario’s marketable equity securities and adjustments to fair value:

The following table represents changes in marketable equity securities:

During the nine months ended September 30, 2021, Solitario sold 900,000(i) 430,000 shares of TNR Gold Corp. common stock for proceeds of $26,000 and 2,900,000recorded a gain on sale of $19,000; (ii) 1,510,000 shares of Vendetta Mining Corp. (“Vendetta”)Vendetta) common stock respectively,for proceeds of $69,000 and recorded a loss on sale of $91,000; and (iii) 3,200 shares of Vox for proceeds of $9,000 and recorded a gain on sale of $2,000.

Solitario sold 2,900,000 shares of Vendetta common stock during the three and nine months ended September 30, 2020 for proceeds of $47,000 and $123,000 respectively, and recorded a gain on sale of $25,000 and $50,000 respectively, on the date of sale. Solitario did not sell any marketable equity securities during the three months and nine months ended September 30, 2019. The change in the fair value of marketable equity securities during the three and nine months ended September 30, 2019 was related entirely to the unrealized loss on marketable equity securities related to their fair values based upon quoted market prices for the marketable equity securities held by Solitario during that period.

On May 19, 2020, Solitario received 137,255 shares of Vox upon conversion of the SilverStream Note, discussed above, valued at $294,000.

On July 31, 2019, Solitario purchased 3,450,000 Vendetta units for a total of $233,000. Each Vendetta unit consisted of one share of Vendetta common stock and one Vendetta warrant (the “Vendetta Warrants”). Each Vendetta Warrant entitles the holder to purchase one additional share of Vendetta common stock for a purchase price of Cdn$0.13 per share for a period of three years. On the purchase date Solitario recorded marketable equity securities of $165,000 for the Vendetta shares acquired and $68,000 for the Vendetta Warrants based upon an allocation of the purchase price of the Vendetta units, determined by (i) the fair value of the Vendetta common shares received based upon the quoted market price for Vendetta common shares and (ii) the fair value of Vendetta Warrants based upon a Black Scholes model. During the three and nine months ended September 30, 2020,2021, Solitario recorded a gaincharged loss on derivative instruments of $37,000$2,000 and $50,000,$42,000, respectively, for the change in the fair value of the Vendetta Warrants based on a Black Scholes model. During the three and nine months ended September 30, 2019,2020, Solitario recorded a lossgain on derivative instruments of $42,000$36,000 and $49,000, respectively, for the change in the fair value of the Vendetta Warrants based on a Black Scholes model.

From time to timetime-to-time Solitario has sold covered call options against its holdings of shares of common stock of Kinross Gold Corporation (“Kinross”) included in Marketable Equity Securities.marketable equity securities. The business purpose of selling covered calls is to provide additional income on a limited portion of shares of Kinross that Solitario may sell in the near term, which is generally defined as less than one year and any changes in the fair value of its covered calls are recognized in the statement of operations in the period of the change. During the three and nine months ended September 30, 2020,2021, Solitario sold covered calls against its holdings of Kinross for cash proceeds of $25,000$8,000 and $103,000, respectively, and repurchased certain of itsrecorded a gain on derivative instruments related to those covered calls prior to expiration for $160,000of $1,000 and $224,000, respectively. As of$8,000, respectively, during the three and nine months ended September 30, 2020, Solitario has a remaining liability of $19,000, in total, related to two outstanding Kinross call options which expire in November 2020 and January 2021. During the three and nine months ended September 30, 2020 Solitario recorded a loss on derivative instruments related to its Kinross calls of $106,000 and $139,000, respectively. During the three and nine months ended September 30, 2019, Solitario recorded a gain on derivative instruments related to its Kinross calls of $6,000.

The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of September 30, 2020:

At both September 30, 20202021 and December 31, 2019,2020, a valuation allowance has been recorded, which fully offsets Solitario’s net deferred tax assets, because it is more likely than not that the Company will not realize some portion or all of its deferred tax assets. The Company continually assesses both positive and negative evidence to determine whether it is more likely than not that the deferred tax assets can be realized prior to their expiration.

During the three and nine months ended September 30, 20202021 and 2019,2020, Solitario recorded no deferred tax expense.

Solitario has recorded an asset retirement obligation of $125,000 related to its Lik project in Alaska. See Note 2, “Mineral Properties,” above.

Solitario leases office space under a non-cancelable operating lease for the Wheat Ridge, Colorado office which provides for future total minimum rent payments as of September 30, 20202021 of $17,000$86,000 through MarchOctober of 2021.

On June 18, 2013, Solitario’s shareholders approved the 2013 Solitario Exploration & Royalty Corp. Omnibus Stock and Incentive Plan, as amended (the “2013 Plan”). Under the terms of the 2013 Plan, a total of 5,750,000 shares of Solitario common stock wereare reserved for awards to directors, officers, employees and consultants. Awards granted under the 2013 Plan may take the form of stock options, stock appreciation rights, restricted stock, and restricted stock units. The terms and conditions of the awards are pursuant to the 2013 Plan and are granted by the Board of Directors of the Company (the “Board of Directors”) or a committee appointed by the Board of Directors.

As of September 30, 2020,2021, and December 31, 20192020, there were options outstanding that are exercisable to acquire 5,698,0005,513,000 and 4,373,0005,558,000 shares, respectively, of Solitario common stock, with exercise prices between $0.20 and $0.77 per share. All of the options have a five-year term from the date of grant, and vest 25% on the date of grant and 25% on each of the next three anniversary dates. Solitario amortizes grant date fair value on a straight-line basis over the vesting period. During the nine months ended September 30, 2021, Solitario granted 140,000 options with an average exercise price of $0.68 per share, each having a five-year term and a grant date fair value total of $58,000 based upon a Black-Scholes model, with a 76% volatility and a 0.9% risk-free interest rate. During the nine months ended September 30, 2020, Solitario granted 1,325,000 options exercisable to acquire 1,325,000 shares of common stockeach with an exercise price of $0.20 per share, a five yearfive-year term and a grant date fair value of $145,000 based upon a Black-Scholes model, with a 66% volatility and a 0.4% risk-free interest rate. During the nine months ended September 30, 2019, Solitario granted2021, options exercisable to acquire 150,000for 185,000 shares of common stock,were exercised with an average exercise price of $0.28$0.45 per share, a five-year term, and a grant date fair valuerespectively, for proceeds of $23,000 based upon a Black-Scholes model, with a 64% volatility and a 2.4% risk-free interest rate. In addition, during the nine months ended September 30, 2019, options exercisable for 1,000,160 shares of common stock, with exercise prices between $1.68 and $0.70 per share, expired unexercised.$83,000. There were no exercises of options under the 2013 Plan during eitherthe three months ended September 30, 2021. There were no exercises of options under the 2013 Plan during the three and nine month periodsmonths ended September 30, 20202020. During the three and 2019.nine months ended September 30, 2021, Solitario recorded stock option compensation expense of $32,000 and $104,000, respectively. During the three and nine months ended September 30, 2020, Solitario recorded stock option compensation expense of $72,000 and $287,000, respectively. During the three and nine months ended September 30, 2019, Solitario recorded stock option compensation expense of $85,000 and $258,000, respectively. At September 30, 2020,2021, the total unrecognized stock option compensation cost related to non-vested options was $175,000$100,000 and is expected to be recognized over a weighted average period of 22 months.

Shareholders’ Equity for the three months ended September 30, 2021:

Shareholders’ Equity for the three months ended September 30, 2020:

Shareholders’ Equity for the nine months ended September 30, 2021: