Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

January 29, 2010 09:48 ET

Moly Mines Reports Quarter Activities

TORONTO, ONTARIO--(Marketwire - Jan. 29, 2010) -

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

Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to report the highlights from its Quarterly Activities report for the period ending December 31, 2009 available on SEDAR (www.sedar.com).

Hanlong Mining Investment

  • Hanlong to acquire majority control of MOL through US$200 million equity/debt investment
  • Hanlong to procure US$500 million project finance loan facility by 30 June 2010 for Spinifex Ridge Molybdenum Project.
  • FIRB and Moly Mines shareholder approval received.
  • PRC National Development and Reform Commission and Ministry of Commerce approvals received.
  • PRC State Administration of Foreign Exchange approval is in progress.
  • Negotiations ongoing to extend the 31 January cut-off date for the satisfaction of remaining SAFE condition precedent.

Spinifex Ridge Molybdenum Project

  • Feasibility engineering and detailed design work on the 10Mt/a project commenced.

Spinifex Ridge Iron Ore Project

  • Development timetable pushed back due to port delays:
    • Construction – Q3, 2010.
    • Pre-strip – Q3, 2010.
    • First ore on ship – Q4, 2010.

Markets

  • Molybdenum prices stable for the Quarter averaging US$11.8/lb Mo oxide.
  • Spot market activity increased significantly early January taking prices above US$15.00/lb.
  • Seaborne iron ore market remains strong for producers with spot iron price above US$113/t (CIF China) at Quarter end and rising further to US$125/t during January 2010 (Metal Bulletin).

Corporate & Finance

  • TCW Interim Financing Facility restructured.
  • C$31.5 million / A$33.6 million institutional placement completed 30 October 2009.
  • C$15 million / A$16 million Share Purchase Plan completed 7 December 2009.

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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