Moly Mines Company Update

TORONTO, ONTARIO--(Marketwire - May 27, 2011) - Moly Mines Limited (TSX:MOL)(ASX:MOL) welcomes funds associated with EIG Global Energy Partners (EIG) (previously Trust Company of the West) to the register of Moly Mines. EIG have exercised 19 million warrants in Moly Mines yesterday and accordingly Moly Mines has issued 19 million fully paid ordinary shares to those warrant holders.

EIG's holding represents 4.9% of the issued capital of Moly Mines. The share issue coincides with Moly Mines shareholders re-appointing EIG's nominee Mr Andy Zhmurovsky to the Board of Moly Mines at yesterday's annual general meeting in Perth.

EIG's warrant holdings arose under the US$150 million Interim Financing facility entered into in September 2008. A further 4.9 million warrants remain outstanding.

US$500 million Project Finance Facility Update

Moly Mines can also confirm that it has been advised by the China Development Bank ("CDB") that their credit approval process for a revised US$494 million in project finance facilities to develop the Spinifex Ridge Molybdenum / Copper mine has been completed.

The structure of the facilities continues to evolve. CDB's revised commitment is for a US$454 million twelve year project finance facility and an additional US$40 million in working capital facilities. Hanlong has advised that an additional US$6 million will be advanced separately to Moly Mines to meet their commitment to procure US$500 million in project finance facilities.

CDB has confirmed that the previously announced deadline of 7 July 2011 for completion of documentation and first drawdown no longer applies. However CDB, Hanlong and Moly Mines remain focused on completing the main finance facility loan documents as soon as possible and meeting conditions precedent to first drawdown as soon as practical thereafter.

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.