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Molycorp, Inc.  News
For Release:  7 a.m. Eastern, April 9, 2012

Molycorp's Rare Earth Reserves at Mountain Pass Increase by 36%

GREENWOOD VILLAGE, CO (April 9, 2012, 7:00 a.m. Eastern) – Molycorp, Inc. (NYSE:MCP) today announced that its proven and probable reserves of rare earth minerals at its Mountain Pass, California facility have increased by 36 percent, according to a new independent estimate.

The updated estimate, based on the SEC's rigorous "Industry Guide 7" definition of proven and probable mineral reserves, expands Molycorp's reserves to 18.4 million short tons of rare earth ore, at an ore grade of 7.98% and a cut-off grade of 5%.  This compares to a previous 2010 estimate of Molycorp's proven and probable reserves of 13.6 million short tons.  Both independent analyses were done by SRK Consulting of Lakewood, Colorado, an industry mining consulting firm that specializes in such estimates.

SRK now estimates that the proven and probable component of Molycorp's ore body contains approximately 2.94 billion pounds (1.3 million metric tons) of contained rare earth oxide (REO) equivalent.  This compares to the previous estimate of 2.24 billion pounds of contained REO product (1.02 million metric tons).

"The SEC's Industry Guide 7 standard of measuring proven and probable reserves is the most rigorous standard in the industry, and the Mountain Pass ore body is one of the only rare earth deposits in the world that is measured by such a high standard," said Mark A. Smith, Molycorp's President and Chief Executive Officer. "I am pleased to see our world-class deposit continue to grow in size, and I believe that our ongoing exploratory drilling at Mountain Pass may show an even larger estimate of proven and probable reserves once that work is completed."

Smith added: "It is noteworthy that the cutoff grade of 5% used by SRK far exceeds the head-grades of most other known rare earth projects around the world, which underscores the unique richness of our ore body."

The updated estimate of Molycorp's reserves by SRK was based on an analysis of an updated mine plan that calculated material volumes, tonnes, in-situ grades, and concentrate tonnes. The SRK analysis took into account data from exploratory drilling conducted in 2010.  

The SEC Guide 7 standard of measurement used by SRK measures proven and probable reserves.  This standard differs from the NI-43-101 standard, used by virtually all other rare earth companies, in that the NI-43-101 standard measures a potential ore body in terms of "measured, indicated and inferred resources."  Under SEC Guide 7, "inferred" material is treated as waste and is not included in the measurement of reserves, while NI-43-101 standard allows for the inclusion of inferred material as part of a potential resource.  Inferrred resources is typically a much larger number in these estimates than measured and indicated resources.

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For more information:
 
Jim Sims, +1 (303) 843-8062
Vice President, Corporate Communications

Jim.Sims@Molycorp.com
 
Brian Blackman, +1 303-843-8067
Senior Manager, Investor Relations

Brian.Blackman@Molycorp.com
 
 
About Molycorp, Inc.
 
With offices in the U.S., Europe, and Japan, Molycorp, Inc. is the only U.S-based company that is fully integrated across the rare earth mine-to-magnets supply chain.  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
http://www.molycorp.com.


Molycorp's Safe Harbor Statement

This release contains forward-looking statements that represent Molycorp’s beliefs, projections and predictions about future events or Molycorp’s future performance.  In particular, statements in this release regarding our proven and probable reserves are forward-looking statements.  Forward-looking statements can be identified by terminology such as “may,” “will,” “would,” “could,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms or other similar expressions or phrases. These forward-looking statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause Molycorp’s actual results, performance or achievements or industry results to differ materially from any future results, performance or achievement described in or implied by such statements.
 
Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to: uncertainties associated with Molycorp’s reserve estimates and non-reserve deposit information, including estimated mine life and annual production; uncertainties related to feasibility studies that provide estimates of expected or anticipated costs, expenditures and economic returns; and REO prices, production costs and other expenses for operations, which are subject to fluctuation.
 
For more information regarding these and other risks and uncertainties that Molycorp may face, see the section entitled “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. Any forward-looking statement contained in this press release or the Annual Report on Form 10-K reflects Molycorp’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Molycorp’s operations, operating results, growth strategy and liquidity. You should not place undue reliance on these forward-looking statements because such statements speak only as to the date when made. Molycorp assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future, except as otherwise required by applicable law.
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