Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

December 19, 2007 08:30 ET

Moly Mines Enters Strategic Alliance With World Moly Leader

TORONTO, ONTARIO--(Marketwire - Dec. 19, 2007) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Moly Mines Limited, (TSX:MOL)(ASX:MOL) is pleased to announce it has entered into a strategic commercial alliance with Molibdenos y Metales S.A. ("Molymet") of Chile.

This powerful alliance brings together what is planned to be the world's next major molybdenum miner with the world's largest producer of molybdenum finished products. The alliance blends the mining project experience of Moly Mines with the downstream processing and marketing skills of Molymet in a commercial relationship that aims to deliver significant financial benefits to the shareholders of both enterprises.

In the first undertaking of the Alliance, Molymet and Moly Mines have entered into a Tolling Agreement for 100% of molybdenum concentrates produced at the Company's Spinifex Ridge Molybdenum Project. The Tolling Agreement allows for the conversion of Spinifex Ridge molybdenum concentrates to technical grade molybdenum oxide, both in powder and briquettes form and ferro-molybdenum. Both of these products are direct feed into the furnaces of the specialty steel industry.

Moly Mines Chief Executive Officer and Managing Director Dr. Derek Fisher said "Molymet is a world leader in the molybdenum industry and this alliance is a wonderful endorsement of our development strategy. We are delighted to complete these agreements which formalize our relationship and provides Moly Mines with a platform for further growth and expansion within the molybdenum industry."

Molymet is a publically owned Chilean corporation listed on the Santiago Stock Exchange and has been processing molybdenum concentrates since 1975. Molymet has production facilities in Chile, Mexico, Belgium and Germany and treats approximately 150 million lb/a of molybdenum in concentrates at its various facilities, representing approximately 35% of world molybdenum consumption.

The Spinifex Ridge Molybdenum Project has reserves and resources to support a projected 20+ year mine life and under current plans it will produce an average, 24mlb per annum of molybdenum in concentrate.

The Strategic Alliance provides the framework for future co-operation between the two companies, particularly with respect to the identification of future exploration and mining opportunities.

These press materials do not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that will contain detailed information about the company and management, as well as financial statements.

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