Mt. Hope Project On Track For Permitting

LAKEWOOD, CO - General Moly Inc. reported on Mt. Hope project's financing, project development and permitting progress.
Bruce D. Hansen, Chief Executive Officer, said, "Despite the current difficult credit environment, we continue to be confident that the Mt. Hope project will be able to be financed. Given the project's overall quality including high grades and low operating costs in addition to the project's wide support from the steel industry, Mt. Hope continues to be on track to be fully permitted and financed in time for late-2010 startup."
The Company ended the September quarter with a consolidated cash balance of $121 million. Based on the current development schedule, the current cash balance is anticipated to fund the Company through the first quarter of 2009 without new sources of capital. Credit Suisse and Barclays continue to progress on the ultimate bank project financing, which is anticipated to be finalized in conjunction with the receipt of final permits in the third quarter of 2009. The Company is also evaluating additional support from current strategic partners, the possibility of a sale of another minority interest in the Mt. Hope project, debt from private investment groups as well as the continued monitoring of the capital markets as potential sources of interim project financing needs. The Company also retains the flexibility, subject to agreement with POSCO, to adjust the development spending and defer the schedule, if it is believed that increased incremental funding becomes unavailable or uneconomic.
Permitting at Mt. Hope is progressing toward a third quarter 2009 Record of Decision. Applications for the State-issued Water Pollution Control and Air Quality permits were submitted in the third quarter of 2008 and the Company expects to receive these permits in the first half of 2009. On November 3, the Company submitted its 22nd and final baseline environmental study, related to pit lake geochemistry, to the Bureau of Land Management (BLM). Submittal of this report concludes the scientific baseline and impact analysis in the permitting process. The BLM and its contractor Enviroscientists are compiling the Draft EIS. The company is assisting in that effort to the extent allowed. The Company expects the Draft EIS to be published early in the first quarter of 2009. The project continues to receive broad local support.
The Company has purchased approximately 16,000 acre-feet of existing water rights in the Kobeh valley, adjacent to the Mt. Hope project. During the year, the Company's extensive water exploration and evaluation program has identified and tested five water well locations that are anticipated to be capable of producing sufficient water to meet Mt. Hope's production needs of approximately 6,500 gallons per minute (GPM). The transfer of the water rights to these locations and the change from agricultural use to mining and milling use is expected to be approved by the Nevada Division of Water Resources in the first quarter of 2009.
Total capital for the Mt. Hope project is anticipated to be $1,039 million, within the previously-announced range of $1,000 - $1,080 million, although declining energy prices may help lower energy-related items of the capital estimate including freight charges and pre-stripping costs.
The company's address is 1726 Cole Blvd., Suite 115, Lakewood, CO 80401, (303) 928-8599,  fax: (303) 928-8598 .