General Moly Completes Pre-Feasibility Study on Hall-Tonopah Indicating an Estimated Project Net Present Value of $356 Million

Business Wire, April 29, 2008

Name of Hall-Tonopah Project Changed to Liberty Project

LAKEWOOD, Colo. -- General Moly Inc. (AMEX:GMO) (TSX:GMO) has re-named the Hall-Tonopah project the Liberty project and announced the completion of a Pre-Feasibility Study in respect of the Liberty Project (the "Pre-Feasibility Study" or "Study"), which estimates production and capital and operating cost parameters along with project economics. Highlights of the Pre-Feasibility Study include:

* After-tax, Net Present Value (NPV) of $356 million, discounted at 10%, and NPV of $514 million, discounted at 8%;

* Internal Rate of Return (IRR) of 22% and capital payback of 3.5 years from initial production;

* Anticipated molybdenum production of approximately 19 million pounds and anticipated copper production of approximately 18 million pounds annually over the first five years through a mill processing 36k short tons per day (tpd);

* Anticipated molybdenum cash costs, inclusive of copper byproduct credits, of $6.21 per pound over the first five years;

* Anticipated average grades of 0.091% molybdenum estimated to be processed over the first five years;

* 503 million pounds of molybdenum estimated to be produced over a 33 year mine life including 24 years of primary mining operations and 10 years of low-grade production; and

* Estimated initial capital expenditures of $492 million (in 2008 dollars), excluding working capital and bonding requirements.

Bruce D. Hansen, Chief Executive Officer, said, "I am extremely pleased with the results of the Pre-Feasibility Study, which positions Liberty as one of the world's top three molybdenum projects currently being considered for development. Given the conservative molybdenum and copper price assumptions utilized in the study and the five years of discount applied to future positive cash flows, we believe that an NPV of $356 million demonstrates the robustness of this project. On a cumulative basis, the NPV of our equity portion in the Mt. Hope project and the Liberty project are estimated at $1.76 billion, or $21.23 per fully-diluted share, representing substantial potential value to current and new investors.

"We will continue to prudently advance the Liberty project as we position it as a follow-on to Mt. Hope, with initial production at the Liberty project currently expected in 2013. With both projects in production, we would expect to reach steady state production of approximately 50 million pounds per year positioning General Moly as the world's largest pure-play primary molybdenum producer with cash anticipated costs well below many other projected primary molybdenum mines."

The Pre-Feasibility Study was completed by M3 Engineering & Technology Corp with supporting work from Independent Mining Consultants (IMC), Smith Williams Consultants (SWC) - Tailings Storage Facility Design, Gault Group, Inc. (GGI) - Environmental and Permitting, and Hanlon Engineering - Geology and Metallurgical Testing.

PROJECT ECONOMICS

In developing the economic analysis of Liberty, the Pre-Feasibility Study utilized molybdenum price forecasts from CPM Group, an independent commodities research and consulting firm. CPM Group also supplied the prices utilized in the Mt. Hope Bankable Feasibility Study (the "Mt. Hope BFS") completed in August 2007, but provided updated price forecasts from October 2007 for the Pre-Feasibility Study. Prices utilized in determining the Liberty project's economics are listed in the table below. In the Pre-Feasibility Study's analysis, $0.38 per pound of copper was deducted to represent anticipated concentrate treatment and refining charges (TC/RCs). Based on the Pre-Feasibility Study, the Company anticipates that it will realize a net $1.48 per pound copper price in 2013 and a net $1.12 per pound copper price thereafter.

[TABLE OMITTED]

Liberty's NPV is highly sensitive to changes in the price of molybdenum, see first attached graph.

The Pre-Feasibility Study also calculated Liberty NPV values under flat price scenarios. At $15 per pound, the Liberty project generates an estimated NPV of $326 million discounted at 10% and $485 million discounted at 8%. Utilizing today's spot molybdenum prices near $33 per pound, Liberty generates an estimated NPV in excess of $1.75 billion discounted at 10% and $2.3 billion discounted at 8%. Flat price sensitivities are presented below.

[TABLE OMITTED]

NPV SENSITIVITY TO 2012 STARTUP

If market conditions are supportive, the Company could advance the project with anticipated initial production in January 2012 rather than January 2013 as described above. Based on the Pre-Feasibility Study, doing so would increase the NPV of Liberty by $102 million to $458 million ($5.53 per fully-diluted share). Initiating production one year earlier would allow the project to capture higher anticipated molybdenum prices ($66 million positive impact to NPV) while discounting future cash flows one year less ($36 million positive impact to NPV). Under this scenario, the after-tax IRR would increase to 25% and payback of capital would occur just 2.8 years after initial production. Alternatively, if the Company were to defer the project until January 2014 due to market conditions, Liberty's NPV would decrease by $100 million to $256 million. Under this scenario, Liberty's IRR would decrease to 17% and payback would occur 4 years after initial production.