Mt. Hope Will Produce 40 Million Pounds Of Molybdenum Annually 

LAKEWOOD, COLORADO - General Moly reported that hydrology studies were contingently approved by the Bureau of Land Management (BLM) in late June and a formal letter from the BLM accepting the studies as complete was received in late July.  A Preliminary Draft Environmental Impact Statement (PDEIS) is planned to be completed and provided to Cooperating Agencies in the first half of August. These Agencies will then have 25 business days to review and provide comments on the PDEIS to the BLM, which will incorporate those comments into a Draft EIS (DEIS). 

In June, the Company filed change applications with the State Engineer's office requesting permits to withdraw water at well locations matching those incorporated in the Company's final hydrology models now approved by the BLM.╩ The State Engineer will then set a hearing date in the latter part of this year. The Company remains confident that it will be granted required water permits for the Mt. Hope project in sufficient time to maintain the Company's current project development timeline. The Company is also continuing work with the Commissioners of Eureka County and the growers in Diamond Valley to find a solution to their opposition of the Company's water applications. The Company's scientific studies continue to indicate that Mt. Hope's water pumping in Kobeh Valley will have virtually no impact to water in Diamond Valley.

The Mount Hope deposit will be mined using conventional open pit methods. High grade material from the mine is processed in a mill at an average rate of approximately 60,000 tons per day. Lower grade material will be stockpiled and processed in years 32 through 44, once mining activities have ceased. In the first 5 years of operation the mine will produce approximately 40 million pounds of molybdenum annually at direct operating costs of approximately $5.29 per pound, based on $80 per barrel oil-equivalent energy costs.

Processing includes a conventional crushing, grinding and flotation circuit, producing a molybdenum concentrate. Thickeners and filters will dewater these concentrates to produce a filter cake for further processing in a multi-hearth roaster to produce a final technical grade molybdenum oxide product (TMO). Recovery in the mill is expected to be 85.8% life of mine (higher recoveries at higher grades) and recoveries in the roaster circuit is expected to be 99.2% life of mine.

The Mt. Hope project is one of the world's largest and highest grade undeveloped molybdenum projects. The Mt. Hope deposit contains 1.3 billion pounds of Proven and Probable reserves.

The company's address is 1726 Cole Blvd., Suite 115, Lakewood, CO 80401, (303) 928-8599, email: [email protected].