Mt. Hope Remains In Construction-Ready Status

LAKEWOOD, CO - Excluding restricted cash, the General Moly's cash balance at September 30, 2013 was approximately $26 million compared to $68 million at December 31, 2012 and $35 million at June 30, 2013. During the third quarter, cash use of $9 million was the result of $7 million spent on Mt. Hope Project development costs (plant, construction, engineering, procurement and owner’s cost) as well as $2 million in general and administrative expenses and Liberty related expenditures. In December 2012, the Company and POS-Minerals Corporation, as the members of Eureka Moly, LLC (EMLLC), agreed to hold $36 million, due to the Company, of the approximately $100 million received from POS-Minerals December, 2012 contributions in a reserve account until the Company arranges full project financing for its 80% share of Mt. Hope Project construction cost.

Bruce D. Hansen, Chief Executive Officer of General Moly, said, "We are actively pursuing financing options in Asia as well as considering a variety of other financing alternatives including equity investments, project level investments and debt financings that we believe are executable. The Company is focused on securing a path forward that minimizes dilution, long term cost and risk to stockholders."

Hansen added, To support ongoing due diligence efforts the Company is updating its resource models, mine plan and project economics. This updating effort is expected to be complete in November and will assist in the financing effort.

Hansen concluded, As we proceed towards full financing at Mt. Hope, the Company will continue to prudently manage our unrestricted cash position of $26 million at the end of the third quarter with an additional $36 million in restricted cash, held at EMLLC. The cash reduction plan we implemented in September maintains liquidity by reducing engineering, administrative and procurement expenses, trimming our overall expenses from $2-3 million per month to less than $1.5 million per month going forward. Specifically, our ongoing G&A plus project owners costs will average about $1 million per month and other project related spending including equipment purchases, surety bonding and Mt. Hope lease requirements will be limited to approximately $3 million, or $0.5 million per month on average, through the first quarter of 2014.

Engineering is approximately 65% complete at the Mt. Hope Project. Through September 30, 2013, EMLLC has made deposits of $73.4 million on equipment orders and has paid $12.0 million into an escrow arrangement for electricity transmission services.

EMLLC has now ordered or purchased most of the long-lead milling equipment, haul trucks, mine production drills and has entered into a letter of intent for the purchase of two electric shovels.

Approximately 70% of the planned spend on process equipment has been defined through hard bids and purchase orders and is estimated to remain on budget. Further, approximately 80% of planned spend on mining equipment has been committed with cancelable purchase agreements and is also estimated to remain on budget. Some of the committed spend is subject to Producer Price Index-based escalation and additional holding costs if there are extended delays, and some agreements would be subject to cancellation. The project remains in a construction-ready status pending full project financing.