Molycorp and Hitachi Metals Announce Agreement to Pursue Formation of Joint Ventures to Manufacture Rare Earth Alloys and Magnets in the U.S.

Molycorp, Inc. (NYSE: MCP) and Japan-based Hitachi Metals, Ltd. today
jointly announced that they have entered into an agreement regarding the
planned formation of joint ventures for the production of rare earth
alloys and magnets in the U.S. The ventures would be focused on the
manufacture of neodymium-iron-boron (NdFeB) alloys and magnets that are
vital to many clean energy, automotive, computer, health care,
communications and other technologies.

The parties are expected to sign definitive agreements, which are
subject to the satisfaction of certain conditions, for the alloy joint
venture by early April 2011. Signing of definitive agreements, subject
to the satisfactory conclusion of the feasibility study and other
conditions, for the joint venture to produce rare earth magnets would
follow later in 2011.

'We look forward to launching these joint ventures for production in the
U.S. together with Molycorp, which has long experience and deep
expertise in the rare earth industry,? said Nobuhiko Shima, President of
NEOMAX Company of Hitachi Metals, Ltd. 'As the world′s top manufacturer
of NdFeB magnets, we are well positioned to satisfy the growing demand
from global customers for these rare earth magnets, and to contribute to
an energy efficient society.?

'We are very pleased to have reached agreement in principle with Hitachi
Metals, the world's leading manufacturer of rare earth magnets, to
launch these joint ventures,? said Mark Smith, Molycorp′s Chief
Executive Officer. 'These joint ventures are an integral part of
Molycorp′s "mine-to-magnets′ business plan, and they move our Company
and the United States one step closer to realizing the strategic goal of
re-establishing a complete rare earth manufacturing supply chain in the
U.S.?

About Molycorp, Inc.

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 Molycorp's 'mine-to-magnets' strategy and the expected
completion of its modernization and expansion efforts at its Mountain
Pass, California processing facility by the end of 2012, Molycorp
expects to produce at a rate of approximately 20,000 metric tons of REO
equivalent per year and intends to offer a range of rare earth products,
including high-purity oxides, metals, alloys, and permanent magnets.

About Hitachi Metals, Ltd.

Hitachi Metals, Ltd.,{TSE: 5468}, headquartered in Tokyo, Japan, is a
materials manufacturer that has gained distinction for its high-quality
technology and outstanding development capabilities. Its fiscal 2009
(ended March 31, 2010) consolidated sales was 431 billion yen(US$ 4,641
million). As expressed by the 'Material Magic? communications symbol,
Hitachi Metals remains true to the path it has taken as a manufacturer
based in materials development. Hitachi Metals strives to address the
needs of its customers by providing truly original products while
contributing to environmental protection.

This press release contains forward-looking statements that represent
Molycorp′s (the 'Company?) 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 successfully conclude the
feasibility study and satisfy the other conditions and enter into
definitive agreements for the joint ventures; 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

Media:

Jim Sims, Director of Public
Affairs, 303-843-8067, Jim.Sims@Molycorp.com

James
McCusker, VP, ICR, Inc., 203-682-8245, James.McCusker@icrinc.com

Investor
Relations:

Gary T. Dvorchak, CFA, ICR, Inc., Senior Vice
President, 310-954-1123

Gary.Dvorchak@icrinc.com

or

Hitachi
Metals:

Kenichi Nishiie, Division Head, Corporate
Communication, 81 (3) 5765-4075, hmcc@hitachi-metals.co.jp