Moly Mines Limited: Spinifex Ridge Molybdenum/Copper Project Financing-NDRC Approval

Moly Mines Limited (TSX: MOL)(ASX: MOL) is pleased to announce that the immediate parent entity of Hanlong Mining Investment Pty Ltd ("Hanlong") has received the key Chinese government approval in the process toward completing the financing for the Spinifex Ridge Molybdenum/Copper Project ("Project").

The National Development and Reform Commission ("NDRC") of the People's Republic of China has confirmed its permission for Chinese funding to be allocated to the development and construction of the 10 million tonne per annum Project.

Moly Mines CEO/Managing Director Dr Derek Fisher commented, "NDRC approval is the critical government approval required for any major overseas investment by a Chinese organization. It now allows our banking syndicate to finalise the negotiation of the term sheet for the financing of the molybdenum/copper project. This important milestone caps a momentous week for the Company, the week during which we also commenced production of iron ore at Spinifex Ridge."

Pursuant to the Subscription Agreement dated 19 October 2009, as amended, Moly Mines' major shareholder Hanlong has committed to arranging US$500 million in project financing for the construction of the Project by 31 January 2011.

Hanlong's immediate parent entity, Sichuan Hanlong High Technology Development Co, sought and has now received NDRC approval to support the commitment of Hanlong. The approval is for an amount of US$466 million, to be provided in the form of Chinese bank loans. The balance of funding is currently being sourced by Hanlong.

The approval comes a week ahead of a scheduled visit of a senior delegation from the China Development Bank and senior executives of the Hanlong Group to Perth, at which time further negotiations will take place for the financing facilities. Moly Mines anticipates completion of the Term Sheets later this month, before proceeding with full form loan documentation.

This news release includes "forward-looking statements" as that term within the meaning of securities laws of applicable jurisdictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Moly Mines' control. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this news release, including, without limitation, those regarding Moly Mines' future expectations. Readers can identify forward-looking statements by terminology such as "aim," "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "potential," "predict," "project," "risk," "should," "will" or "would" and other similar expressions. Risks, uncertainties and other factors may cause Moly Mines' actual results, performance, production or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors include the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs currently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange rates between the U.S. dollar and the Australian dollar; failure to recover the resource and reserve estimates of the Project; the failure of Moly Mines' suppliers and service providers to fulfill their obligations under construction, supply and tolling agreements; unforeseen geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labor shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.

Contacts: Moly Mines Limited Natalie Frame Investor Relations +1 416 777 1801 +1 416 371 7541 Moly Mines Limited Derek Fisher Managing Director +61 8 94293300 www.molymines.com

SOURCE: Moly Mines Limited

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