Molycorp To Receive $390 Million Strategic Investment From Molymet

Molycorp, Inc. (NYSE:MCP) announced today that Molibdenos y Metales S.A.
(Molymet), the world′s largest processor of the strategic metals
molybdenum and rhenium, has agreed to invest approximately $390 million
in Molycorp in exchange for 12.5 million shares of Molycorp common
stock. The price of the Molycorp shares to be purchased were valued
based on the 20-day volume weighted average share price as of the close
of trading on January 30, 2012 plus a 10.0% premium. Molycorp has agreed
to appoint to its Board of Directors upon the closing of the proposed
investment a nominee to be designated by Molymet.

Proceeds from the Molymet investment will be retained by Molycorp for
general corporate purposes and will bolster Molycorp′s strategic
flexibility. The funds are expected to finance Molycorp′s future growth
and will help the Company continue to pursue its vertical supply chain
integration business model. Closing of the transaction is subject to the
satisfaction of customary closing conditions, including the receipt of
certain governmental regulatory approvals.

Headquartered in Santiago, Chile, Molymet has a market capitalization of
$1.8 billion USD and is the world's leading processor of molybdenum and
rhenium. Molymet has plants in Chile, Mexico, Belgium, Germany, and
China, and commercial offices in England, China, the U.S., Brazil, and
Chile.

John Graell, Molymet′s Executive Chairman and Chief Executive Officer,
is expected to serve on Molycorp′s Board. He has more than 30 years of
experience in the metals industry, and is a highly respected industry
leader with a long history of business success.

'We are very pleased with Molymet′s decision to make this significant
strategic investment in Molycorp, and we look forward to having John
Graell, and his wealth of experience and insight, join our Board when
nominated by Molymet,? said Mark A. Smith, Molycorp President and Chief
Executive Officer. 'Molymet′s investment will help us pursue the growth
elements of our business strategy and positions us to capitalize on
opportunities that present themselves in the future.?

'We are making this investment in Molycorp because we are very bullish
on the upside potential of the company, as well as the highly
synergistic technologies and market positioning of our respective
companies,? said Graell. 'Molycorp′s vision for growth and global supply
chain integration is highly attractive to us, and I look forward to
working with the Company to help it achieve its long-term goals.?

About Molycorp, Inc.

With offices in the U.S., Europe, and Japan, Molycorp, Inc. is the only
U.S-based company that is fully integrated across the rare earth
mine-to-magnets supply chain. 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 Molymet

With more than 70 years of experience in the ferroalloy industry,
Molymet′s primary business is processing molybdenum concentrates, or
molybdenite, for the obtainment and commercialization of several
molybdenum final products and by-products, such as molybdenum oxide,
ferromolybdenum, and rhenium. The world leader in molybdenum and rhenium
processing, Molymet currently has plants in five countries: Chile,
Mexico, Belgium, Germany and China, with commercial offices in England,
China, the United States, Brazil and Chile. It has been listed for the
past 33 years in the Chilean Commerce Exchange and, since 2010, it is a
part of the IPSA index.

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
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: the satisfaction of the closing conditions necessary to
complete Molymet′s investment, including our receipt of necessary
government regulatory approvals; Molycorp′s ability to secure additional
capital to implement its business plans; Molycorp′s ability to complete
its initial modernization and expansion efforts, including the
accelerated start-up of the Mountain Pass facility, which management
refers to as Project Phoenix Phase 1, and the second phase capacity
expansion plan, which management refer to as Project Phoenix Phase 2,
and reach full planned production rates for REOs and other planned
downstream products; the final costs of the Project Phoenix Phase 1,
including with accelerated start-up of the Mountain Pass facility, and
Project Phoenix Phase 2, which may differ from estimated costs;
uncertainties associated with Molycorp′s reserve estimates and
non-reserve deposit information; uncertainties regarding the results of
exploratory drilling programs; uncertainties regarding global supply and
demand for rare earths materials; Molycorp′s ability to successfully
integrate recently acquired businesses; our ability to enter into
additional definitive agreements with our customers and our ability to
maintain customer relationships; completion of the formation of the
proposed sintered NdFeB rare earth magnet joint venture, which remains
subject to the satisfaction of customary closing conditions; the
proposed sintered NdFeB rare earth magnet joint venture′s ability to
successfully manufacture magnets within its expected timeframe;
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 and of the Company′s Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 2011. Any forward-looking statement
contained in this press release or the Annual Report on Form 10-K or the
Quarterly Report on Form 10-Q reflects Molycorp′s current views with
respect to future events and is subject to these and other risks,
uncertainties and assumptions relating to Molycorp′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. 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, +1 (303) 503-6203

Vice
President, Corporate Communications

Jim.Sims@Molycorp.com

or

Brian
Blackman, +1 (303) 843-8067

Senior Manager, Investor Relations

Brian.Blackman@Molycorp.com

or

Molymet

Fernando
Ortega, +56 2 937 6534

Vice President, Corporate Affairs

Fernando.ortega@molymet.cl

or

Edgar
Pape, +56 2 937 6656

Finance Manager

Edgar.pape@molymet.cl