Medium term production from world-class moly deposit

Ownership: 100% General Moly
Location: Nye County, Nevada, 25 miles northwest of town of Tonopah
Status: Completed Pre-Feasibility Study
Mine type/Estimated life*: Open pit/32 years
First 5 years*: 14M lb moly/year and 7.5M lb copper/year at $7.79 cash operating costs/lb moly (no royalties)
LOM*: NPV= $325M; IRR= 17%
Capex: $366M
Outlook: Advancement to Feasibility Study contingent on market improvement

Background

The Liberty Project, wholly owned by the Company, is another world-class moly asset located in Nevada, and 140 air miles southwest of the Mt. Hope Project. Covering approximately 22 square miles, the Liberty Project is accessible year-round by Highway 95.

The Company purchased the Liberty Project in 2006 and consolidated additional mineral claims on the property, effectively eliminating all third-party royalties, in 2007.

Past mining of moly occurred on the property between 1981 and 1991 and there was copper production between 1995 and 2002. As a result, considerable infrastructure remains on site that may be of future use for moly-copper operations, including a power supply, water rights, water well systems, roads, tanks, and other structures. In addition, the moly open pit remains accessible.

While much of the plant area was reclaimed after the 2002 closure, General Moly continues other maintenance and reclamation work on the property. The Company expects to advance the Liberty Project to the feasibility stage depending on improved market conditions and business and financing priorities.

Technical Report PFS

The Company filed its Technical Report Pre-Feasibility Study for the Liberty Project, which was completed in accordance with the Canada National Instrument 43-101 (NI 43-101), in July 2014.

Geology and Mineralization

The Liberty Project is situated at the intersection of the Golconda and Roberts Mountain thrust plates. The Liberty moly deposit in the open pit is associated with a Cretaceous age of quartz monzonite porphyry stock intruding into early age of metasediments, generally similar to the Climax and Urad mines.

At the Liberty Project, the economic mineral molybdenite is found mainly in quartz veining. To the east of the open pit is an area of transition and supergene copper blanket beneath the layer of oxidation. This eastern copper area, which also contained moly, was evaluated in the 2014 Technical Report as a part of the future expansion of the Liberty open pit.

Future Mining and Processing

The 2014 Technical Report defined a Liberty open pit mine, mill with an average throughput of 26,500 tons per day and off-site toll roasting and smelting. There is potential for the Liberty material to be toll roasted at the Mt. Hope Project’s future operation, reducing costs and enhancing the Liberty Project’s economics.

End Notes

Data are based on the updated Pre-Feasibility Study Technical Report, compliant under the Canada National Instrument 43-101, filed in July 2014.

Operating data represent the averages over the first five years of production. Cash operating costs per pound of molybdenum are estimated using $3.25/lb copper byproduct credits. Net Present Value and Internal Rate of Return use $15.00/lb molybdenum, $3.25/lb copper over 31 years of mining, 32 years of milling and an 8% discount rate, after tax. Cash flow is based on the aforementioned, except it is undiscounted.

Measured and indicated resources of 309.2M tons at average grades of 0.078% molybdenum and 0.098% copper contain 482M lb of molybdenum and 606M lb of copper. Liberty reserves, based on $15.00/lb molybdenum and $3.00/lb copper, are effective as of July 30, 2014. Proven reserves are within 92.5M tons at average grades of 0.101% molybdenum and 0.056% copper, while probable reserves are within 216.7M tons at average grades of 0.068% molybdenum and 0.116% copper. While the above reserves are in accordance with NI 43-101, they are not recognized as reserves by the U.S. SEC.

Liberty Project NPV breakeven and cash flow breakeven use $15.00/lb molybdenum, $3.25/lb copper over 31 years of mining, 32 years of milling and a discount rate of 8%, after tax. There is the potential to increase Liberty’s NPV and IRR by toll roasting Liberty molybdenum concentrates at the Mt. Hope Project once constructed, thereby decreasing total cash costs to $7.41/lb for the first 5 full years of production.