Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

June 24, 2008 09:00 ET

Moly Mines Finalises Offtake Agreement for 100% of Spinifex Ridge Production

TORONTO, ONTARIO--(Marketwire - June 24, 2008) -

THESE PRESS MATERIALS ARE NOT FOR RELEASE IN THE UNITED STATES.

Moly Mines Limited, (TSX:MOL)(ASX:MOL) is pleased to announce the signing of a 10 year Offtake Agreement with ThyssenKrupp Metallurgie GmbH (TKMet) of Germany for all of the molybdenum production from the Spinifex Ridge Molybdenum Project.

Moly Mines' Chief Executive Officer Dr Derek Fisher, commenting on the agreement said "This Offtake Agreement cements a close alliance with TKMet and the ThyssenKrupp group, one of the world's largest steel and technology groups and sends a powerful message to the international financial community."

Under the Offtake Agreement TKMet will take delivery and purchase 100% of Moly Metals Australia's interest (currently 100%) in molybdenum product from Spinifex Ridge as oxide and ferro-molybdenum after it has been toll processed under the Company's Tolling Agreement with strategic alliance partner, the Chilean metallurgical group Molymet.

Pricing will be determined with reference to the prevailing market prices and conditions at the time of sale, therefore maintaining full exposure to molybdenum price.

"This agreement is a key-stone to the project financing" Dr Fisher said. "Investors will take note that we have successfully preserved shareholder value by ensuring our sales agreement provides maximum exposure to molybdenum price. We have resisted the temptation of floor priced contracts with price participation mechanisms that transfer value away from shareholders."

TKMet have also agreed to participate in the equity financing component for the Spinifex Ridge Molybdenum Project, subject to final ThyssenKrupp board approvals.

Molybdenum Concentrates produced from the Spinifex Ridge Molybdenum Project will be shipped to Molymet's plant in Santiago, Chile for conversion to molybdenum oxide and / or ferro-molybdenum under the Tolling Agreement signed in December 2007.

Moly Metals Australia Pty Ltd is a 100% owned subsidiary of Moly Mines Limited and the 100% owner of the Spinifex Ridge Molybdenum Project, located in the Pilbara region of Western Australia. The Project is on track for construction completion and commissioning in the 2nd half of 2009.

ThyssenKrupp AG is one of the largest industrial groups and steel producers in Europe with a combined turnover of over 50 billion euros in 2007 across its business units and over 190,000 employees world wide in 2,500 locations in 70 countries. They are amongst the world's largest producers of high quality and stainless flat steel products and have major expansion programs in Brazil and the USA.

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.

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.

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