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Press release from Business Wire

General Moly to Restart Liberty Project Evaluation and Development

Monday, January 03, 2011

General Moly to Restart Liberty Project Evaluation and Development17:03 EST Monday, January 03, 2011 LAKEWOOD, Colo. (Business Wire) -- General Moly (NYSE AMEX: GMO) (TSX: GMO) announced that the Company will allocate $2.5 million in its 2011 budget to advance the Company's Liberty project, located in central Nevada. Bruce D. Hansen, Chief Executive Officer, said, "In early 2009, with the collapse of the global markets, we suspended evaluation activities at the Liberty project. However, given our positive outlook for both the moly and copper markets, and the Liberty project's potential economics, we will begin advancing our second world-class project toward production. We also have non-Mt. Hope-related funding from the early exercise of warrants which have already provided approximately $18.5 million in proceeds and are anticipated to provide approximately $4 million in further proceeds by mid-February." A pre-feasibility study released in April of 2008 indicated annual moly production of 19 million pounds and annual copper production of 18 million pounds per year, at moly cash costs of $6.15 per pound (net of copper credits) for the first five years of operations. That cost figure was based on a copper price assumption of $1.50 per pound. Based on today's copper prices of over $4 per pound, the Liberty project's cash cost could be closer to $4 per pound of salable molybdenum with copper credits over the first five years of operations. Over the year, the Company's evaluation program at Liberty will focus on collecting baseline data for the Nevada State-issued permits, hydro-geological groundwater characterization of the open pit, infill drilling, and logging and assaying prior drill core to improve and update the existing geologic model. The Company anticipates an update to the pre-feasibility study by the end of the year, including an evaluation of full feasibility study options. The Liberty project is substantially located on private land and is anticipated to require Nevada state-issued permits only, simplifying permitting requirements relative to permitting on Federal land. Permitting requirements for the Liberty project include an Air Quality permit, a Water Pollution Control permit, a Dam Safety permit (relating to the tailings facility), and a Reclamation Permit. Following the pre-feasibility update and full feasibility analysis that is anticipated to be completed by the end of 2011, the Company will move forward with a full bankable feasibility study and permit applications. Construction at Liberty could be started in 2014 with production able to commence by the end of 2015 or early 2016. The 2008 pre-feasibility study indicated a capital cost requirement of approximately $500 million (2008 dollars). Funding for the Liberty project is anticipated to be largely financed out of free cash flow from the Mt. Hope project; however, the Company will consider off-take and strategic partner financing for the project. 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. Subsequent closings under the Stock Purchase Agreement with Hanlong 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. General MolyInvestors:Seth Foreman, 303-928-8591sforeman@generalmoly.comorBusiness Development:Greg McClain, 303-928-8601gmcclain@generalmoly.comhttp://www.generalmoly.cominfo@generalmoly.com