General Moly Updates The Mt. Hope Project

LAKEWOOD, CO - General Moly, Inc. reported that when final permits are received, POS-Minerals Corporation (a 20% owner of the Mt. Hope Project, in Nevada) is anticipated to fund its final $56 million initial contribution, plus 20% of all costs the Company has spent on the Mt. Hope Project to date. The Company estimates this combined payment will be approximately $100 million. Thereafter, the Mt. Hope Project will be funded 80% by the Company and 20% by POS-Minerals Corporation.

As announced in February, 2012, China Development Bank ("CDB") has confirmed the basic terms underlying a proposed $665 million term loan to finance the Mt. Hope Project, including a CDB intention to lend $399 million and arrange a consortium of Chinese and international banks to fund the remaining balance. The term loan is anticipated to carry a maturity of 12 years including a 30 month grace period to allow for the construction of the Mt. Hope Project. The interest rate will remain subject to market conditions and Chinese government policy until loan documentation is completed later this year. The Company and Sichuan Hanlong Group Limited ("Hanlong") are continuing to work with CDB with a target of having the term loan completed, approved and available to the Company shortly after receipt of the Mt. Hope Project's operating permits.

Once the term loan is in place and required permits are received, the Company intends to close on Hanlong's Tranche 2 equity purchase for $40 million, bringing Hanlong's share position in the Company to 25% on a fully-diluted basis.

The Bureau of Land Management ("BLM") published the Mt. Hope Draft Environmental Impact Statement ("EIS") for public comment in December, 2011. The public comment period concluded on March 1, 2012. The BLM is now in the process of considering comments received in the development of a Final EIS. Once the Final EIS is completed, it will be advanced toward publication through the Notice of Availability process within the U.S. Department of the Interior and thereafter published in the Federal Register for a 30-day period. Following the close of this period, General Moly anticipates the BLM to issue a Record of Decision ("ROD") allowing the Company to initiate construction activities. Based on a larger number of comments than expected during the public comment period, the Company now anticipates the ROD to be issued in the second half of this year, although circumstances beyond control, including agency delays or requests for additional information or studies, could cause the ROD to be delayed.

In addition to the ROD, three Nevada state-issued permits are viewed as major environmental permits. These are the Water Pollution Control Permit, the Air Quality Permit and the Reclamation Permit. The Company continues to develop the applications and supporting information for these permits. These three permits are anticipated to be received before the issuance of ROD.

On July 15, 2011, the Nevada State Engineer issued a second Ruling granting the Company's water right applications for the Mt. Hope Project's mining operations. Permits subject to the State Engineer's Ruling were issued in December 2011 and January 2012. Pending a successful outcome of an appeal of the Ruling discussed below, the water will become available for consumptive use following the State Engineer's approval of a Monitoring, Management and Mitigation Plan ("3M Plan"). The Company is finalizing its proposed 3M Plan, developed with input from Eureka County, and anticipates the State Engineer to approve the 3M Plan prior to the receipt of Federal permits in the second half of this year.

Engineering efforts, which were paused in March 2009, were restarted in January 2012 by M3 Engineering & Technology following the publication of the Draft EIS. Although the Company has ordered or purchased most of the long-lead milling equipment and haul trucks, firm orders for the drills and loading equipment for the mine fleet, and other process equipment must still be placed. As equipment procurement is restarted, agreements that were suspended or terminated in 2009 will be renegotiated under new market terms and conditions, as necessary.

In November 2011, the Company completed an updated pre-feasibility study on the Liberty Project, in Nevada, indicating an estimated Net Present Value of $538 million. The study utilized molybdenum and copper prices of $15.00 and $2.50 per pound, respectively, and used an 8% discount rate. Included in the study was an NI 43-101 compliant mineral reserve including 541.4 million tons with ore grades averaging 0.068% molybdenum and 0.08% copper. The study outlined estimated molybdenum and copper reserves and resources, production, capital and operating cost parameters, along with project economics.

In 2013, the Company anticipates commencing a Bankable Feasibility Study on the Liberty Project to better evaluate the project for development once the Mt. Hope Project is funded and under construction.

The company's address is 1726 Cole Blvd., Suite 115 Lakewood, CO 80401, 303-928-8599.