Molycorp and United Steelworkers Agree on New Labor Contract

Molycorp, Inc. (NYSE: MCP), the Western hemisphere's only producer of
rare earth oxides (REO) and the largest REO producer outside of China,
and the United Steelworkers (USW), the largest private sector union in
America, announced agreement on a new three-year labor contract at
Molycorp's flagship rare earth manufacturing facility at Mountain Pass,
California.

The agreement was achieved approximately six months early, which helps
to ensure a smooth start up of Phase 1 of Molycorp's 'Project Phoenix'
modernization and expansion at Mountain Pass.

'I am very pleased to see Molycorp and the Steelworkers agree on a new
labor contract so far ahead of schedule,' said Mark A. Smith, President
and CEO of Molycorp. 'The partnership we have enjoyed for many years
with the Steelworkers has been a very productive one, and we look
forward to continuing to work together as we ramp up America's
production of strategic rare earth products and seek to leverage the
creation of new manufacturing jobs in the U.S.'

'The United Steelworkers take pride in partnering with Molycorp to
provide the U.S. and the rest of the world with a reliable supply of
rare earth materials,' said Robert LaVenture, United Steelworkers
District Director. 'The Molycorp Mountain Pass facility has a long
history of cooperation with our union and is providing good-paying jobs
to help the local economy. We look forward to contributing our best
efforts to keep Mountain Pass world-class in rare earth production.'

About Molycorp, Inc.

With offices in the U.S., Europe, and Japan, Molycorp, Inc. is the
only rare earth oxide (REO) producer in the Western Hemisphere and the
largest REO producer outside of China.In addition to its
current production of rare earth oxides at its flagship rare earth mine
and processing facility at Mountain Pass, California, the Company
produces rare earth metals, rare earth alloys (such as
neodymium-iron-boron and samarium-cobalt alloys) and rare metals such as
niobium and tantalum. The rare earths and rare metals Molycorp produces
are critical inputs in existing and emerging applications including:
clean energy technologies, such as hybrid and electric vehicles and wind
power turbines; multiple high-tech uses, including fiber optics, lasers
and hard disk drives; numerous defense applications, such as guidance
and control systems and global positioning systems; advanced water
treatment technology for use in industrial, military and outdoor
recreation applications; and other technologies. For more information
please visit ?www.molycorp.com.

About the United Steelworkers

The USW represents 850,000 members in the United States, Canada
and the Caribbean. It is the largest private sector union in North
America, representing workers in a wide range of industries including
metals, mining, rubber, paper and forestry, oil refining, plus office,
technical and service workers in health care, security, hotels and
municipal governments.

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Molycorp, Inc.

Jim Sims

Vice President Corporate
Communications

+1 (303) 843-8062

Jim.Sims@Molycorp.com

or

Brian
Blackman

Senior Manager, Investor Relations

+1
(303) 843-8067

Brian.Blackman@Molycorp.com

or

United
Steelworkers (USW)

Gary Hubbard

Director, Public Affairs

+1
(202) 256-8125

ghubbard@usw.org