Mt. Hope Project Reports Substantial Progress

LAKEWOOD, CO - General Moly, Inc. reported that substantial progress has been made with regards to preliminary construction activities at the Mt. Hope project site including cultural clearance, clearing and grubbing, wood harvesting, and the development of early construction water. Kautz Environmental Consultants has completed adequate field mitigation so that once financing is secured construction can proceed unencumbered by cultural sites. Ames Construction has cleared and grubbed approximately 1,800 acres in preparation for starting major earthworks. The mine, process plant, and tailings dam areas and associated roads have been substantially cleared. Ames Construction also has completed four miles of water pipeline (approximately 50% of total planned) to supply construction water from the permitted well field to the plant site. Further activities have been substantially reduced as a result of the delay in financing for the Mt. Hope Project and will resume as alternative financing becomes available.

In 2012, the Nevada State Engineer completed issuance of all water permits for the Mt. Hope Project and approved the Company's Monitoring, Management and Mitigation Plan (3M Plan). In April 2013, the 3M Plan was challenged in an appeal and the appeal was rejected by the Nevada State District Court. The Petitioners recently filed an appeal of the District's Court Order to the Nevada Supreme Court, and Petitioners' opening briefs were filed July 26th, 2013. EMLLC response brief is due August 26th, 2013.

The water permits were also challenged in an appeal to the District Court by Eureka County and two parties of water rights holders in Diamond and Kobeh Valley, and the appeal was rejected by the District Court in June, 2012. The Petitioners thereafter filed an appeal to the Nevada Supreme Court. Briefing has recently been completed including appearances by Amicus Curiae supportive of the Company and the State Engineer's position. The Nevada Supreme Court has consolidated the 3M Plan appeal and the water permits appeal. Presently, the Supreme Court has not issued a ruling or set a hearing date for the appeal, until the 3M Plan matter is fully briefed later in the 3rd quarter of 2013.╩Notwithstanding, the water remains available to the Company for use at the Mt. Hope Project.

In February 2013, Great Basin Resource Watch and the Western Shoshone Defense Project filed a Complaint, and a Motion for Preliminary Injunction, against the U.S. Department of Interior and Bureau of Land Management (BLM) in the U.S. District Court in Nevada, seeking relief under the National Environmental Policy Act and other federal laws challenging issuance of the Record of Decision (ROD) for the Mt. Hope Project. EMLLC has intervened and along with the federal government filed its opposition to the Motion for a Preliminary Injunction. The Court set oral argument regarding the Motion for a Preliminary Injunction on September 3, 2013. The process for issuing the ROD involved an exhaustive environmental analysis and review that lasted more than 6 years, and included extensive public and cooperating agency input. The Company supports the very robust and legally and technically defensible work completed by the BLM and believes that the ROD complies with all federal statutes and rules.

Engineering is approximately 65% complete at the Mt. Hope Project. Through June╩30, 2013, Eureka Moly, LLC (EMLLC) has made deposits of $73.0 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.

EMLLC is planning the placement of firm orders for other mining and process equipment pending timing of full project financing. 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 75% 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 final financing.

The company also reported results for the second quarter ended June 30, 2013. Net loss for the three months ended June 30, 2013 was $14.3 million, compared to a loss of $2.7 million for the year ago period. The primary reason for the $14.3 million net loss during the second quarter was an $11.5 million non-cash charge relating to the May 14, 2013 warrant cancellation associated with the mutually terminated $125 million subordinated debt agreement between the Company and Hanlong (USA) Mining.

During the second quarter, cash use of $24 million was the result of Mt. Hope Project development costs (site clearing and grubbing, pipeline development, cultural clearance and engineering) as well as general and administrative expenses partially offset by the receipt of $2 million in contribution payments from POS-Minerals Corporation. In December 2012, the Company and POS-Minerals, as members EMLLC, agreed to hold $36 million of the approximately $100 million received from POS-Minerals' December, 2012 contributions in a reserve account to maintain additional liquidity until the Company arranges full project financing.