Molycorp Sold 638 Metric Tons In Q4 

GREENWOOD VILLAGE, CO - Molycorp, Inc. reported that it sold approximately 638 metric tons of rare earth oxide (REO) products in the fourth quarter 2010, a 20% increase compared to 3Q 2010, and a 37% increase from the approximately 467 metric tons sold in 4Q 2009. The Company realized an average sales price of approximately $34.02 per kilogram, compared to an average sales price of $16.10 per kilogram in 3Q 2010, and an average sales price of $4.72 per kilogram for 4Q 2009. Average sales prices have continued to increase significantly in 1Q 2011.

Molycorp realized significantly higher sales volumes and revenue in the fourth quarter of 2010, said Mark Smith, Molycorp President and Chief Executive Officer. Our ability to produce 3,000 tons per year from our current facility is allowing us to benefit from todays dramatically higher rare earth prices. We are in a great position to capture this increased revenue now, even as we construct our new, state-of-the-art processing facility and develop our integrated mine-to-magnets manufacturing supply chain. This integrated rare earth supply chain is expected to position Molycorp to operate as one of the worlds lowest-cost producers and to capture new markets created by rising rare earth demand and China's continuing restriction of rare earth exports, Smith said. Rising demand and reduced Chinese exports have created extraordinarily tight market conditions, Smith explained. In 2010, China exported approximately 30,258 metric tons, which compared to demand outside of China in 2010 of about 55,000 tons. This gap in supply and demand is expected to worsen in 2011, as independent forecasts predict that full year 2011 export quotas will total less than 30,000 metric tons, compared to total demand outside of China of about 60,000 metric tons. That points to a high likelihood of shortages of many rare earth products. These dynamics are why we believe rare earth pricing will remain robust for the foreseeable future,Smith added. It also is why Molycorp recently committed to expanding its production capacity from 19,050 metric tons per year in 2012 to 40,000 metric tons per year, which we expect to achieve in 2013. That will position Molycorp to capture new markets and customers, and benefit from continued strong pricing. The company's address is 5619 DTC Parkway, Suite 1000,Greenwood Village, CO 80111, (303) 843-8040, fax: (303) 843-8082.