Molycorp Announces Plan To Accelerate Initial Start-Up of New Rare Earth Processing Facility

Molycorp, Inc. (NYSE: MCP), the Western hemisphere's only producer of
rare earth oxides and the world's leading producer of rare earth oxides
outside of China, announced plans today to accelerate by approximately
three months the initial start-up of its state-of-the-art rare earth
processing facility, now under construction at Mountain Pass, California.

Mark A. Smith, Molycorp's President and Chief Executive Officer, said
that accelerating the facility's initial start-up will increase the
company's estimated 2012 production by approximately 3,500 metric tons,
to 8,000 - 10,000 metric tons, and will enable Molycorp to achieve its
full Phase 1 production rate of 19,050 metric tons per year of rare
earth oxide equivalent three months earlier than previously planned. In
anticipation of the facility's accelerated start-up, Smith said Molycorp
will commence mining and stockpiling of fresh rare earth ore next week.

The company′s Board of Directors has authorized an additional investment
of $114 million, which includes contingency funds, to accelerate the
facility′s start-up. The acceleration effort will be funded from current
cash flow and existing cash balances.

'We are accelerating our start-up because of robust rare earth oxide
markets and very favorable project economics,' said Smith. 'Every month
that we accelerate our start-up provides that much more product to
customers who need it now. This acceleration also expands the diversity
of global supply, which is an increasingly urgent matter for rare earth
consumers.'

'By accelerating our start-up, we also further de-risk the overall
project by allowing for a more orderly and sequential start up of the
various circuits of this highly complex plant,' Smith added.

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.

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, including the accelerated start-up
of the Mountain Pass facility, 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, including with accelerated start-up of the Mountain Pass facility,
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; 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.

Molycorp, Inc.

Jim Sims, 303-843-8062

Vice President
Corporate Communications

Jim.Sims@Molycorp.com

or

Brian
Blackman, 303-843-8067

Senior Manager, Investor Relations

Brian.Blackman@Molycorp.com