Moly Mines Limited Raises AUD700M from Sichuan Hanlong

Moly Mines Limited (TSX and ASX symbol: “MOL”) (“Moly Mines”) is pleased to advise it

has entered into a Subscription Agreement with Hanlong Mining Investment Pty Ltd

(Hanlong), a subsidiary of the China based, privately owned, Sichuan Hanlong Group Co.,

Ltd (“Hanlong”), under which Hanlong will:

 provide US$200 million in equity and debt funding to Moly Mines; and

 commit to provide or arrange US$500 million debt funding for the 10 Million

tonne per annum Spinifex Ridge Molybdenum/Copper Project.

The US$200 million equity and debt funding is in addition to the recently announced

Institutional Placement and Share Purchase Plan (“SPP”). The total funding will enable

Moly Mines to repay all amounts outstanding on the Trust Company of the West

(“TCW”) Interim Financing Facility by February 2010 and could allow the

commencement of the development of the 10Mt/a Spinifex Ridge Molybdenum/Copper

Project as early as mid 2010.

Moly Mines CEO Dr Derek Fisher said “This Agreement represents a wonderful

opportunity for Moly Mines to clear the Company’s existing debt and build the Spinifex

Ridge Molybdenum/Copper Project significantly ahead of the point at which funding

from the traditional debt and equity markets becomes available. The Agreement will

deliver shareholders the value benefits of a substantial funding package and a major

project partner with a strong balance sheet, diversified operations and mining interests.

The Company could be in the envious position of having constructed the

molybdenum/copper mine at the beginning of the next metals cycle, benefitting from

higher metal prices in the mine’s early production years.”

Dr Hui Xiao (Steven), Managing Director of Hanlong Mining Investment commented.

“We are delighted to be entering into this agreement with Moly Mines and are very

excited about the future, working together to build the Spinifex Ridge project.