Molycorp Declares Preferred Dividends

Molycorp, Inc. (NYSE: MCP), the Western hemisphere's only producer of
rare earth oxides (REO) and the largest REO producer outside of China,
today announced that its Board of Directors has elected to declare a
cash dividend on outstanding shares of its 5.50% Series A mandatory
convertible preferred stock in an amount equal to $1.375 per share.
Molycorp will pay the dividend on September 1, 2011 to the holders of
record of shares of Series A mandatory convertible preferred stock at
the close of business on August 15, 2011. As of July 22, 2011, there
were a total of 2,070,000 shares of Series A mandatory convertible
preferred stock outstanding.

About Molycorp

Colorado-based Molycorp, Inc. is the only rare earth oxide (REO)
producer in the Western Hemisphere and the largest REO producer outside
of China. The company currently is expected to produce a total of
between 4,541 to 5,813 metric tons of commercial rare earth materials in
2011 from its three facilities. In addition to its flagship rare earth
mine and processing facility at Mountain Pass, California, Molycorp also
owns a controlling interest in the Estonia-based Molycorp Silmet AS. One
of the largest rare earth and rare metal producers in Europe, Molycorp
Silmet AS has an annual production capacity of approximately 3,000
metric tons of rare earth products and 700 metric tons of rare metal
products. Molycorp also owns Molycorp Metals and Alloys in Tolleson,
Arizona. Formerly known as Santoku America, Inc., the facility is one of
the leading producers of high-purity rare earth alloys and metals
outside of China, and manufactures neodymium-iron-boron (NdFeB) alloy
and samarium cobalt (SmCo) alloy, as well as other specialty alloys and
products. Following the execution of Molycorp's 'mine-to-magnets'
strategy and the expected 2012 completion of Phase 1 of its
modernization and expansion efforts at its Mountain Pass, California
processing facility, Molycorp expects to produce at a rate of
approximately 19,050 metric tons of REO equivalent per year from
Mountain Pass. The Company expects to achieve an annual production
capacity at Mountain Pass by the end of 2013 of approximately 40,000
metric tons of REO equivalent after the completion of Phase 2. Molycorp
intends to provide to the market a range of rare earth products,
including high-purity oxides, metals, alloys, and permanent magnets. The
company currently sells products to customers in Europe, North and South
America, Asia, Russia, and other previous Soviet Union countries.

Safe Harbor Statement Regarding Forward-Looking Statements

This release contains forward-looking statements that represent
Molycorp′s beliefs, projections and predictions about future events or
Molycorp′s future performance. Forward-looking statements can be
identified 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
Molycorp′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: Molycorp′s ability to secure sufficient capital to implement
its business plans; Molycorp′s ability to complete its Phase 1
modernization and expansion efforts and Phase 2 expansion efforts and
reach full planned production rates for REOs and other planned
downstream products; the final costs of the Phase 1 modernization and
expansion plan and Phase 2 expansion, which may differ from estimated
costs; uncertainties associated with Molycorp′s reserve estimates and
non-reserve deposit information; uncertainties regarding global supply
and demand for rare earths materials; Molycorp′s ability to successfully
integrate recently acquired businesses; Molycorp′s ability to reach
definitive agreements for a joint venture to manufacture
neodymium-iron-boron permanent rare earth magnets and its supply and
financing arrangement with Sumitomo; Molycorp′s ability to maintain
appropriate relations with unions and employees; Molycorp′s ability to
successfully implement its 'mine-to-magnets? strategy; environmental
laws, regulations and permits affecting Molycorp′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 Molycorp; and uncertainties associated with unanticipated
geological conditions related to mining.

For more information regarding these and other risks and uncertainties
that Molycorp may face, see the section entitled 'Risk Factors? of the
Company′s Annual Report on Form 10-K for the year ended December 31,
2010 filed with the SEC. Any forward-looking statement contained in this
press release or the Annual Report on Form 10-K reflects Molycorp′s
current views with respect to future events and Molycorp 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.

Investor Relations Contact:

ICR, LLC

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

Senior Vice President|

Gary.Dvorchak@icrinc.com

or

Company
Contact:

Molycorp Inc.

Jim Sims, 1 (303) 843-8062

Vice
President Corporate Communications

Jim.Sims@Molycorp.com