General Moly Reports On Pre-Feasibility Study on Liberty Project  

LAKEWOOD, CO - General Moly, Inc. reported the completion of an updated Pre-Feasibility Study of its 100%-owned Liberty project, which estimates production, capital and operating cost parameters along with project economics. A NI 43-101 compliant report containing further information on the Liberty project will be filed on SEDAR.

Highlights of the Pre-Feasibility Study include:

Two project development scenarios including an optimized scenario (the "Unconstrained Model") that disturbs federal Bureau of Land Management ("BLM") land within the first year of development and a second scenario (the "Constrained Model") limiting disturbance to private land for the initial three years of production. The goal of the Constrained Model is to initiate operations and accelerate project cash flow while allowing time to complete federal permitting;

After-tax, Net Present Value ("NPV") of $538 million for the Unconstrained model, discounted at 8%;

Internal Rate of Return ("IRR") of 19.7% and capital payback of 3.8 years from initial production for the Unconstrained model;

Anticipated molybdenum production of approximately 20 million pounds per year and anticipated copper production of approximately 17 million pounds per year on average over the first five years for the Unconstrained model;

Anticipated molybdenum cash costs, inclusive of copper byproduct credits, of $5.71 per pound over the first five years for the Unconstrained model;

Anticipated average mill grades of 0.094% molybdenum and 0.101% copper over the first five years for the Unconstrained model;

598 million pounds of molybdenum and 534 million pounds copper estimated to be produced over a 42 year mine life including 26 years of primary mining and 16 years of low-grade production for the Unconstrained model; and

Estimated initial capital expenditures of $556 million (in 2011 dollars), excluding working capital and bonding requirements for the Unconstrained model.

Bruce D. Hansen, Chief Executive Officer, said, "I am very pleased with the outcome of the Liberty pre-feasibility study update. Our Liberty project continues to represent a world-class moly property and one that provides General Moly shareholders with a significant growth profile as we continue to focus on building the world's largest publicly-traded primary moly company. While our immediate focus remains on finalizing the Mt. Hope project's permitting and financing, our team will also advance Liberty toward production.

"Although we used a $2.50 per pound copper price assumption in our resource and economic models , I should note that at current copper prices near $3.50 per pound, operating costs at Liberty would be below $5 per pound moly over the first five years of operations and the project's NPV would increase to approximately $630 million, or $5.71 per fully-diluted share (including shares anticipated to be issued to Hanlong), which is over 60% higher than our current share price, completely ignoring the $1.2 billion Net Present Value of Mt. Hope."

The Pre-Feasibility Study was completed by M3 Engineering & Technology Corp with supporting work from Independent Mining Consultants (IMC).