Updated Pre-Feasibility Study For Liberty Project

LAKEWOOD, CO - General Moly, Inc. reported the completion of an updated Pre-Feasibility Study (PFS) for its 100%-owned Liberty Project. This PFS, prepared by Independent Mining Consultants, Inc. (IMC) with capital estimates from M3 Engineering & Technology Corporation, estimates production, capital, operating cost, and economic analysis for this more capital efficient project when compared to earlier studies. The Liberty Project is located 20 miles north of Tonopah, Nevada.

KEY PRE-FEASIBILITY STUDY HIGHLIGHTS: Total capital costs to construct the project are estimated at $366 million, reflecting the use of extensive existing infrastructure; Sustaining capital costs are estimated at $224 million over the Liberty Projects 32 year life of mine (LOM); For the first five full years of production: annual salable production of approximately 14.0 million pounds of molybdenum and 7.5 million pounds of copper per year is expected based on a mill capacity to process 26,500 tons per day; Average on-site cash costs of $6.32 per pound are expected, using copper as a by-product credit; and total cash costs of $7.79 per pound are expected, which includes off-site roasting, smelting, and shipping costs. The updated mine plan results in a total of 402 million pounds of molybdenum and 308 million pounds of copper to be produced during the LOM, with total contained molybdenum grade of 0.078% and total contained copper grade of 0.098%. The Liberty Project generates an after tax net present value (NPV) at an 8% discount rate of $325 million, and an internal rate of return (IRR) of 17.4%, assuming toll roasting, based on a long-term molybdenum price of $15.00 per pound and a long-term copper price of $3.25 per pound. There is the potential to increase the Liberty Projects NPV and IRR on the basis that molybdenum concentrates from the Liberty Project could be toll roasted at the Mt. Hope Project, once constructed, which could increase the after tax NPV of the Liberty Project to 18.4%, and decrease total cash costs to $7.41 per pound for the first five full years of production. The Liberty Project has an after tax NPV breakeven molybdenum price of $11.64 per pound, at an 8% discount rate, and a non-discounted cash flow breakeven molybdenum price of $9.58 per pound.

Bruce D. Hansen, Chief Executive Officer of General Moly, said, This Pre-Feasibility Study confirms the economically robust nature of the Liberty Project. In addition, there are many significant attributes including its secure Nevada jurisdiction, substantial existing infrastructure, and long life. This analysis also details our plan to build the Liberty Project at a low initial capital cost of $366 million, with 26,500 ton per day mill throughput. This represents a 39% reduction from the approximate $600 million (in 2011 dollars) capital cost estimate in our November, 2011 Liberty Pre-Feasibility Study, which had planned for a 36,000 ton per day mill throughout, while maintaining a similar ratio for after tax NPV to initial capital and slightly improved ratio of annual molybdenum production to initial capital. The updated mine plan allows us to leverage significant existing infrastructure to reduce initial capital costs while retaining the capability to expand post startup and reduce operating costs. Liberty provides significant optionality and flexibility to develop at a low entry capital investment relative to its NPV. We look forward to advancing the project through full feasibility and permitting and anticipate that these results will demonstrate, through an updated low capital scenario, the inherent value of Liberty to shareholders and potential strategic investors.

Hansen added, Depending on market conditions and financing options, Liberty could be advanced through a Feasibility Study (FS) as early as end of year 2015, with the potential to initiate construction as early as late 2017 under Nevada state permits, with production to follow in late 2019. Full realization of the economics of this Pre-Feasibility Study are partly dependent on the ultimate receipt of a federal Environmental Impact Statement record of decision (ROD) at the start of production as a portion of the project is located on federal land, but a less favorable economic plan could be executed solely on private land for a few years, should there be a delay in receiving the ROD. This permitting option provides further flexibility and schedule upside. We expect the FS would focus on improving the project economics based on further drilling, sampling, and metallurgical testing to drive the potential for higher mill throughput, process recovery, and more optimal mine plan options.

Hansen concluded, Even as we advance the Liberty Project, we are aggressively pursuing full financing alternatives for our 80% owned Mt. Hope Project, and continue to have substantive dialogue with potential partners who could support a debt package to provide the bulk of the capital requirements of the Mt. Hope Project.