Moly Mines Reports Quarter Highlights

TORONTO, ONTARIO--(Marketwire - April 27, 2011) -Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to announce the highlights of their Quarterly Activities Report and Quarterly Cashflow Report available on the Company website (www.molymines.com) and on SEDAR (www.sedar.com).

Spinifex Ridge Iron Ore Mine

• Mine achieves designed production rate three months ahead of schedule.
• 176,962 tonnes direct shipping ore mined for the quarter, 134,674 wet metric tonnes shipped.
• A$55.80/t net revenue earned for the quarter after deducting all production costs, penalties for impurities, sales commissions, freight costs and state government royalties.
• A$76.6/t (FOB Port Hedland) costs during this start-up quarter (below budget).
• A$6.6 million mine operating profit for the quarter after stockpile adjustments, before depreciation and amortization.
• 42,259 tonnes of direct shipping ore in stocks at quarter end with an estimated net realizable value of A$3.6 million.
• 700,000 additional tonnes to be shipped in calendar 2011 with costs forecast to drop to A$60-70/t FOB.
• Utah Point Facility Agreement with the Port Hedland Port Authority extended to September 2015, securing the shiploading berth for all of Moly Mines current ore reserves.
• 4^th shipment carrying 68,143 wet metric tonnes sailed on 22^nd April 2011, provisional sales value: US$10.1 million before freight, commissions and royalties.

Spinifex Ridge Molybdenum / Copper Project

• Chinese Government's National Development Reform Commission approval received for the project finance facilities.
• Hanlong advise that China Development Bank has agreed to expand their commitment to US$465 million in senior secured finance facilities and provide US$35 million in working capital facilities to meet Hanlong's US$500 million financing commitment.
• Loan documentation advancing targeting end June 2011 for execution.

Corporate and Finance

• A$20.4 million cash on hand at 31 March 2011.
• Receivables include provisional payment of US$10.2 million received in April 2011 for the March iron ore shipment.
• Stocks on hand at 31 March 2011 valued at cost: $1.8 million.

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.