Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

October 22, 2007 09:01 ET

Moly Sampling Returns High Grade Iron at Spinifex Ridge

TORONTO, ONTARIO--(Marketwire - Oct. 22, 2007) - Moly Mines Limited (TSX:MOL)(ASX:MOL) has commenced assessment of areas of high grade hematite iron mineralization located adjacent to the flagship Spinifex Ridge Molybdenum Project deposit in the Pilbara of Western Australia.

A program of outcrop rock sampling has returned rich grades, including:



- 67.3% Fe;
- 67.1% Fe;
- 66.5% Fe;
- 68.0% Fe;
- 64.8% Fe.


The area of interest starts within 500 metres to the west of the proposed Spinifex Ridge Molybdenum Project open pit mine and extends to the west a further 2.5km. The areas of enriched iron occur within the banded iron formation ("BIF") of the Gorge Creek Group which also hosts the Yarrie Iron Ore deposits owned by BHP Billiton, less than 40km to the northeast.

The planned mine and associated infrastructure for Spinifex Ridge will significantly enhance the viability of mining the iron mineralization, should it prove to be of commercial scale and quality.

Iron mineralization was first reported in the areas covered by the Company's mining leases (M45/1095 and M45/1096) in the 1960's when 4 lenses of iron mineralization were identified. However they have never been fully assessed due to their location and perceived logistics of moving material from the top of the Talga Ridge.

Geo-technical drill studies carried out by MOL as part of the Spinifex Ridge Definitive Feasibility Study led the Company to consider planning an exploration program on the area to determine the extent of the iron mineralization.

An iron ore focused drilling program is being prepared but will require separate approvals, which could take a number of months. These programs will be assessed in light of the implications on the ongoing Spinifex Ridge Molybdenum Project development activities and will initially target the identification of up to 5 million tonnes of iron ore.

MOL has made an application to amend the Mining Lease conditions to include iron ore rights and that application is currently pending Ministerial approval.

The preliminary rock chip sampling, field reconnaissance and mapping of the areas have confirmed iron mineralization. The sampling program tested both the iron-rich outcrops and the country-rock BIF and returned the following results:



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Sample Easting Northing RL Fe Al2O3 SiO2 P S LOI
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Number GDA94 GDA94 ASL % % % % % %
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SX41929 198056 7687836 308 55.1 3.40 14.50 0.028 0.009 2.24
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SX41930 198006 7687808 315 42.7 1.47 34.50 0.016 0.018 2.31
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SX41931 197481 7687644 326 67.3 0.89 1.61 0.043 0.025 0.61
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SX41932 197510 7687653 324 67.1 0.59 2.18 0.065 0.015 0.71
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SX41933 197090 7687835 305 43.9 0.23 32.50 0.108 0.014 3.99
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SX41934 196933 7687790 316 46.5 9.89 14.55 0.056 0.056 8.13
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SX41935 196849 7687743 322 66.5 1.18 2.11 0.037 0.049 1.04
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SX41936 196659 7687700 316 68.0 0.35 1.40 0.052 0.053 0.21
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SX41937 196700 7687852 321 41.9 0.60 38.80 0.051 0.013 0.29
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SX41938 196827 7687925 308 38.6 0.09 44.20 0.030 0.012 0.16
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SX41939 196732 7687761 323 64.8 0.88 3.18 0.093 0.039 2.46
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SX41940 196015 7687694 319 35.6 0.18 48.40 0.035 0.013 0.21
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SX41941 195912 7687713 318 39.8 0.24 42.20 0.040 0.006 0.26
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SX41942 195972 7687704 319 51.5 1.34 22.70 0.165 0.160 1.23
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SX41943 198072 7687929 310 33.7 0.38 50.90 0.015 0.009 0.28
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SX41944 198036 7688150 314 38.4 1.05 42.00 0.030 0.011 1.65
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Notes
Co-ordinate Datum is GDA94 Zone 51
Samples assayed using lithium metaborate fusion and XRF at ALSChemex
Laboratory in Perth


Yours Sincerely

Derek Fisher

Managing Director / CEO

COMPLIANCE STATEMENT

The information contained in the report to which this statement is attached relating Mineral Resources and Ore Reserves is based on information compiled and verified under the supervision of Dr Derek Fisher who is a Fellow of The Australasian Institute of Mining and Metallurgy.

Dr. Fisher is CEO of Moly Mines Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and as a Qualified person for purposes of National Instrument 43-101 of the Canadian Securities Administrators.

Dr Fisher consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

ABN 32 103 295 521

To view a map of the Spinifex Ridge Project, please visit the following link: http://www.ccnmatthews.com/docs/spinifex.pdf

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