Moly Mines Company Update

TORONTO, ONTARIO -- (Marketwire) -- 09/12/11 -- Moly Mines Limited (TSX: MOL)(ASX: MOL) is pleased to provide the following update on the Company's activities.

Spinifex Ridge Iron Ore Mine

The Spinifex Ridge Iron Ore Mine continues to outperform budget expectations. Ore tonnes shipped during the September 2011 quarter total 257,267 wet tonnes from the three shipments scheduled for the quarter, a 20% increase on the June 2011 quarter.

Mining and crushing operations, which remain on single day shift, are performing above planned capacity and are delivering iron ore fines product to the Company's stockpiles, comfortably ahead of the shipping schedule.

A further four shipments are scheduled for the December 2011 quarter which should result in total shipments for the calendar year in excess of 900,000 wet tonnes.

Iron ore prices remain strong with Spinifex Ridge iron ore fines currently realizing approximately US$155/t delivered to Chinese ports, before freight, commissions and state government royalties. Operating costs continue to perform well in the range of A$55-$60/t.

Spinifex Ridge Molybdenum / Copper (Mo/Cu) Project Financing

Current low molybdenum prices and the strength of the Australian dollar against the US dollar have continued to play against an early development decision on the Mo/Cu Project. The volatility of the world equity markets has also impacted on the Company's ability to fill the $200 to $300 million funding gap required before a final investment decision can be made.

Since signing the US$494 million debt finance facilities with China Development Bank Corporation in June 2011, the Company and its major shareholder, Hanlong Mining Investment Pty Ltd, have been in discussions with various advisors and third party funding sources in an effort to close the funding shortfall.

The debt facilities with China Development Bank Corporation will expire if conditions precedent to drawdown are not satisfied or waived by 13 May 2012. The Company will continue to work on solutions to close the funding shortfall over the coming months whilst maintaining the Mo/Cu Project's execution ready status.

In the meantime, the Company continues to realize proceeds from the sale of equipment surplus to the 10 million tonne per annum mine development with the sale of two high pressure grinding rolls for US$17 million.

Corporate

The forecast production and shipping profile of the Spinifex Ridge Iron Ore Mine for the remainder of the calendar year and the sale of surplus equipment for the Spinifex Ridge Mo/Cu Project is expected to provide a strong working capital position for the Company at the end of the 2011 calendar year.

The Company intends to expand its project pipeline through near mine iron ore exploration at Spinifex Ridge and the continued assessment of acquisition opportunities.

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

1 416 371 7541


Moly Mines Limited

Derek Fisher

Managing Director

61 8 94293300
www.molymines.com