Molycorp Secures Last of Permits Needed for Construction Start of $531 Million Rare Earth Manufacturing Supply Chain Project

Molycorp, Inc. (NYSE: MCP), the Western Hemisphere's only producer of
rare earths, announced that it has secured the last of several
environmental permits necessary to begin construction of its new,
state-of-the-art rare earth manufacturing facility at Mountain Pass,
California. Securing the permits is a major milestone in Molycorp′s $531
million project to construct a complete rare earth mine-to-magnets
manufacturing supply chain in the U.S.

The company recently secured a Streambed Alteration Agreement from the
California Department of Fish and Game. Together with three previously
approved permits, Molycorp now has secured all permits necessary to
allow construction to start on its Mountain Pass modernization and
expansion project. The project is expected to support an average of 700
jobs per day over the 18-month construction period, with an additional
200-300 permanent jobs when the new facility runs at full capacity,
scheduled to occur by the end of 2012.

Mark Smith, Chief Executive Officer of Molycorp, said: 'Securing these
permits means that construction of our new rare earth manufacturing
facility at Mountain Pass, California will proceed on schedule, with
project groundbreaking occurring on January 2, 2011. Additionally, we
have begun pre-stripping operations of the mine, which is preparing the
way for active mining of fresh ore to commence in 2011.'

Smith expressed his appreciation to San Bernardino County officials as
well as to the California Department of Health Services, Lahontan
Regional Water Quality Control Board, and the California Department of
Fish and Game for working with Molycorp to finalize the permits. 'We are
especially proud of the working partnerships we have developed with San
Bernardino County. The County conducted a very thorough permitting
review but also managed the process in a highly efficient manner.
Everyone in the county who worked with us in this effort deserves praise
for their professionalism and dedication to the best interests of the
County.'

'We also are very pleased with the working relationships we have
developed with officials across California′s state government and at the
National Park Service, the Bureau of Land Management, and the U.S. Fish
and Wildlife Service,' Smith said. 'This project is an excellent example
of how the public and private sector can work hand-in-hand to move our
nation toward the twin goals of environmental superiority and increased
competitiveness in rare earth production.?

About Molycorp

Colorado-based Molycorp, Inc. is the only rare earth oxide, or REO,
producer in the Western Hemisphere and currently produces approximately
3,000 metric tons of commercial rare earth materials per year. Following
the execution of the Company's 'mine-to-magnets? strategy and completion
of its modernization and expansion efforts at its Mountain Pass, Calif.
processing facility in 2012, it expects to produce at a rate of 19,050
metric tons of REO equivalent per year and will offer a range of rare
earth products, including high-purity oxides, metals, alloys, and
permanent magnets.

This press release contains forward-looking statements that represent
the Company′s beliefs, projections and predictions about future events
or its future performance. You can identify forward-looking statements
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 the Company′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: the
Company′s ability to secure sufficient capital to implement its business
plans; the Company′s ability to complete its modernization and expansion
efforts and reach full planned production rates for REOs and other
planned downstream products; uncertainties associated with the Company′s
reserve estimates and non-reserve deposit information; uncertainties
regarding global supply and demand for rare earth materials; the
Company′s ability to maintain appropriate relations with unions and
employees; the Company′s ability to successfully implement its
'mine-to-magnets? strategy; environmental laws, regulations and permits
affecting the Company′s business, directly and indirectly, including,
among others, those relating to mine reclamation and restoration,
climate change, emissions to the air and water and human exposure to
hazardous substances used, released or disposed of by the Company;
uncertainties associated with unanticipated geological conditions
related to mining; and other risks discussed in the Company′s filings
with the U.S. Securities and Exchange Commission, including the
Company′s Quarterly Report on Form 10-Q for the period ended September
30, 2010, which filings are available from the SEC.

Any forward-looking statement you read in this press release reflects
the Company′s current views with respect to future events and is subject
to these and other risks, uncertainties and assumptions relating to the
Company′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.The
Company 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.

Molycorp Company Contact:

Jim Sims, 1-303-503-6203

Director
of Public Affairs

Jim.Sims@Molycorp.com

or

Molycorp
Investor Relations:

ICR, LLC

Gary T. Dvorchak, CFA,
1-310-954-1123

Senior Vice President

Gary.Dvorchak@icrinc.com