Molycorp Secures 78% of Phase 1 Rare Earth Production in Customer Agreements and XSORBX? Production

Molycorp, Inc. [NYSE: MCP] announced today that 78 percent of its Phase
1 rare earth production from its new Mountain Pass, California
manufacturing facility, which comes online in 2012, has now been secured
by signed customer agreements or has been committed to production of the
Company's XSORBX? water treatment products.

The company said it has entered into written agreements with customers
covering 58% of its Phase I production, and has allocated an additional
20% to production of XSORBX?, for a total of 78% of the 19,050 metric
tons of rare earth oxide (REO) equivalent that it intends to produce
annually under Phase 1 at its flagship Mountain Pass, California rare
earth facility. Exact terms, prices, duration, and products covered by
these agreements vary from customer to customer. Another six percent of
Phase 1 production is in final stage discussions with customers, the
company added.

Molycorp intends to sell its proprietary, cerium-based XSORBX? water
treatment products across four market segments: municipal water
treatment, recreational/pool/spa water, industrial wastewater, and
drinking water purification. The Company currently is selling XSORBX? to
commercial customers in the municipal wastewater treatment and
recreational/pool/spa markets.

'I am very pleased that we have met the Phase 1 off-take allocation
target that we set for 2011, and have found a home for more than
three-quarters of our Phase 1 production prior to start-up,? said Mark
A. Smith, Molycorp′s President and Chief Executive Officer. 'In an
industry that traditionally has been driven by spot sales, Molycorp
continues to break ground by moving customers to stable, secure,
long-term supply contracts.'

Smith added: 'Securing long-term rare earth sales contracts requires the
ability to produce and deliver actual product to customers for extensive
testing, qualification, and fine tuning so that precise specifications
can be met. This process can take many weeks, even months, to complete.
I am very pleased with our progress to date in working with our
customers to ensure we can serve as a reliable, long-term supplier of
these strategic materials.'

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.

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: 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, +1 303-843-8062

Vice
President, Corporate Communications

Jim.Sims@Molycorp.com

or

Brian
Blackman, +1 303-843-8067

Senior Manager, Investor Relations

Brian.Blackman@Molycorp.com