Moly Mines Reports Quarter Highlights

TORONTO, ONTARIO -- (Marketwire) -- 10/20/10 -- Moly Mines Limited (TSX: MOL)(ASX: MOL) is pleased to announce the highlights of their Quarterly Activities Report and Quarterly Cashflow Report available on the Company website (www.molymines.com) and on SEDAR (www.sedar.com).

Spinifex Ridge Iron Ore Project

--  Mining operations commenced on schedule in late September.
--  Construction of crushing and screening plant nearing completion.
--  New Utah Point export facility at Port Hedland completed and
    commissioned.
--  First Spinifex Ridge iron ore shipment due in December 2010
--  All major contracts for the operation tendered and awarded.
--  Iron ore prices continue to perform strongly with continued price
    support forecast in short to medium term.

Spinifex Ridge Molybdenum Project

--  Negotiations and approvals process advanced with respect to the US$500
    million project finance loan facility, draft term sheet received.
--  Extension granted to Hanlong to secure the US$500 million facility to 31
    January 2011.
--  Sichuan provincial National Development Reform Commission approval
    received. State (Beijing) approval underway.
--  Bank delegations visit Spinifex Ridge and Perth as part of due diligence
    process.
--  Fixed prices Engineering, Procurement and Construction contract being
    negotiated with Chinese and Australian engineering groups.

Corporate and Finance

--  Hanlong Project Finance Options expired 30 September 2010, replacement
    options to be approved at annual general meeting.
--  A$47.9 million cash, term deposits and guarantees on hand as at 30
    September 2010.
--  New directors appointed to replace retiring directors

This news release includes 'forward-looking statements' as that term within the meaning of securities laws of applicable jurisdictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Moly Mines' control. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this news release, including, without limitation, those regarding Moly Mines' future expectations. Readers can identify forward-looking statements by terminology such as 'aim,' 'anticipate,' 'assume,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'forecast,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'project,' 'risk,' 'should,' 'will' or 'would' and other similar expressions. Risks, uncertainties and other factors may cause Moly Mines' actual results, performance, production or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors include the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs currently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange rates between the U.S. dollar and the Australian dollar; failure to recover the resource and reserve estimates of the Project; the failure of Moly Mines' suppliers and service providers to fulfill their obligations under construction, supply and tolling agreements; unforeseen geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labor shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.

Contacts:

Moly Mines Limited

Natalie Frame

Investor Relations

+1 416 777 1801 or +1 416 371 7541
info@molymines.com


Moly Mines Limited

Derek Fisher

Managing Director

+61 8 94293300
www.molymines.com