General Moly (GMO) Announces Hanlong's Signing of Memo of Cooperation with EXIM Bank of China

General Moly (GMO) Announces Hanlong’s Signing of Memo of Cooperation with EXIM Bank of China

Nov. 18, 2010 (Business Wire) — General Moly (NYSE Amex: GMO) (TSX: GMO) announced that the Company has been informed by Sichuan Hanlong Group (Hanlong) that Hanlong has signed a memo of cooperation over the past weekend with the Export-Import Bank of China, Chengdu branch (CEXIM). The agreement is focused on CEXIM providing up to $1.5 billion in loans to Hanlong to support its investment in overseas mining opportunities.

Under the previously-announced transaction between Hanlong and General Moly, Hanlong will provide a total of $745 million in financing to General Moly including a $665 million bank loan Hanlong will source and guarantee. In addition, Hanlong will purchase a 25% fully-diluted interest in the Company for $80 million in two equal tranches. The first $40 million will be invested for a 12.5% interest in General Moly on December 20, 2010 while the second $40 million will be invested when the Company receives permits for its Mt. Hope project and when the bank loan becomes available. The transaction with Hanlong is expected to provide all remaining capital necessary to place the Mt. Hope project into production.

General Moly is a U.S.-based molybdenum mineral development, exploration and mining company listed on the NYSE Amex (formerly the American Stock Exchange) and the Toronto Stock Exchange under the symbol GMO. Our primary asset, our interest in the Mt. Hope project located in central Nevada, is considered one of the world’s largest and highest grade molybdenum deposits. Combined with our second molybdenum property, the Liberty project that is also located in central Nevada, our goal is to become the largest primary molybdenum producer by the middle of the decade. For more information on the Company, please visit our website at http://www.generalmoly.com.

Forward-Looking Statements

Statements herein that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and are intended to be covered by the safe harbor created by such sections. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected, or implied by the Company. These risks and uncertainties include, but are not limited to, metals price and production volatility, global economic conditions, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, exploration risks and results, political, operational and project development risks, including the Company’s ability to obtain required permits to commence production and its ability to raise required financing, adverse governmental regulation and judicial outcomes. The closing of the Hanlong transaction and obtaining bank financing are subject to a number of conditions precedent that may not be fulfilled. For a detailed discussion of risks and other factors that may impact these forward looking statements, please refer to the Risk Factors and other discussion contained in the Company’s quarterly and annual periodic reports on Forms 10-Q and 10-K, on file with the SEC. The Company undertakes no obligation to update forward-looking statements.