Moly Mines Limited
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ASX : MOL

Moly Mines Limited

January 29, 2008 08:47 ET

Moly Mines Limited Reports Capital Control Cost Estimate and Budget for the Spinifex Ridge Molybdenum Project

TORONTO, ONTARIO--(Marketwire - Jan. 29, 2008) -

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

Moly Mines Limited, (TSX:MOL)(ASX:TSX) is pleased to advise the Capital Control Estimate and Budget for the Spinifex Ridge Molybdenum Project totals A$1.084 billion - just 1 per cent above the Definitive Feasibility Study estimate.

Moly Mines Managing Director Dr Derek Fisher said this remarkable result reflected the comprehensive and extensive work undertaken during the DFS.

"The Capital Control Estimate and Budget represents a 1% increase from the Definitive Feasibility Study estimate of A$1.071 billion, which was based on June 2007 cost estimates," he said.

"The Budget is the result of the collaborative engineering and design efforts of Moly Mines and the Project engineering manager WorleyParsons. The estimate includes a contingency of A$100 million, but excludes financing allowances such as working capital facilities."

The Capital Control Estimate and Budget is the baseline project capital budget against which all capital costs are reported. It provides the benchmark for project execution based on a completed Basis of Design, detailed scheduling of activities and work streams, manpower and allowances for contingency and escalation of capital costs.

"The Budget has been built on existing project contracts, competitive bids, tender processes, vendor pricing databases and reviewed estimates," Dr Fisher said.

"The Capital Control Estimate and Budget sets the financing platform for the Spinifex Ridge Molybdenum Project. It will allow lenders to assess the total financing requirements of the Project."

The Spinifex Ridge project, located approximately 50 km northeast of the town of Marble Bar in the East Pilbara Shire of Western Australia, has a defined resource of 469 million tonnes and contains an average grade of 0.06% Molybdenum and 0.09% copper.

The processing plant design capacity is 20 million tonnes per annum with the Definitive Feasibility Study modelling forecasting the production of 240 million pounds of molybdenum concentrate and 270 million pounds of copper concentrate in the first 10 years of operations.

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.

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

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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