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Press release from Business Wire

Molycorp and United Steelworkers Agree on New Labor Contract

Monday, October 17, 2011

Molycorp and United Steelworkers Agree on New Labor Contract07:00 EDT Monday, October 17, 2011 GREENWOOD VILLAGE, Colo. (Business Wire) -- Molycorp, Inc. (NYSE: MCP), the Western hemisphere's only producer of rare earth oxides (REO) and the largest REO producer outside of China, and the United Steelworkers (USW), the largest private sector union in America, announced agreement on a new three-year labor contract at Molycorp's flagship rare earth manufacturing facility at Mountain Pass, California. The agreement was achieved approximately six months early, which helps to ensure a smooth start up of Phase 1 of Molycorp's "Project Phoenix" modernization and expansion at Mountain Pass. "I am very pleased to see Molycorp and the Steelworkers agree on a new labor contract so far ahead of schedule," said Mark A. Smith, President and CEO of Molycorp. "The partnership we have enjoyed for many years with the Steelworkers has been a very productive one, and we look forward to continuing to work together as we ramp up America's production of strategic rare earth products and seek to leverage the creation of new manufacturing jobs in the U.S." "The United Steelworkers take pride in partnering with Molycorp to provide the U.S. and the rest of the world with a reliable supply of rare earth materials," said Robert LaVenture, United Steelworkers District Director. "The Molycorp Mountain Pass facility has a long history of cooperation with our union and is providing good-paying jobs to help the local economy. We look forward to contributing our best efforts to keep Mountain Pass world-class in rare earth production." About Molycorp, Inc.With offices in the U.S., Europe, and Japan, Molycorp, Inc. is the only rare earth oxide (REO) producer in the Western Hemisphere and the largest REO producer outside of China.In addition to its current production of rare earth oxides at its flagship rare earth mine and processing facility at Mountain Pass, California, the Company produces rare earth metals, rare earth alloys (such as neodymium-iron-boron and samarium-cobalt alloys) and rare metals such as niobium and tantalum. The rare earths and rare metals Molycorp produces are critical inputs in existing and emerging applications including: clean energy technologies, such as hybrid and electric vehicles and wind power turbines; multiple high-tech uses, including fiber optics, lasers and hard disk drives; numerous defense applications, such as guidance and control systems and global positioning systems; advanced water treatment technology for use in industrial, military and outdoor recreation applications; and other technologies. For more information please visit www.molycorp.com. About the United SteelworkersThe USW represents 850,000 members in the United States, Canada and the Caribbean. It is the largest private sector union in North America, representing workers in a wide range of industries including metals, mining, rubber, paper and forestry, oil refining, plus office, technical and service workers in health care, security, hotels and municipal governments. Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50030858&lang=en Molycorp, Inc.Jim SimsVice President Corporate Communications+1 (303) 843-8062Jim.Sims@Molycorp.comorBrian BlackmanSenior Manager, Investor Relations+1 (303) 843-8067Brian.Blackman@Molycorp.comorUnited Steelworkers (USW)Gary HubbardDirector, Public Affairs+1 (202) 256-8125ghubbard@usw.org