General Moly Announces Pre-Feasibility Study on Liberty Project Indicating an Estimated Net Present Value of $538 Million

General Moly, Inc. (the 'Company') (NYSE Amex and TSX: GMO) announced
the completion of an updated Pre-Feasibility Study of its 100%-owned
Liberty project, which estimates production, capital and operating cost
parameters along with project economics. A NI 43-101 compliant report
containing further information on the Liberty project will be filed on
SEDAR.

Highlights of the Pre-Feasibility Study include:

• 
  Two project development scenarios including an optimized scenario (the
  'Unconstrained Model') that disturbs federal Bureau of Land Management
  ('BLM') land within the first year of development and a second
  scenario (the 'Constrained Model') limiting disturbance to private
  land for the initial three years of production. The goal of the
  Constrained Model is to initiate operations and accelerate project
  cash flow while allowing time to complete federal permitting;
  
• 
  After-tax, Net Present Value ('NPV') of $538 million for the
  Unconstrained model, discounted at 8%;
  
• 
  Internal Rate of Return ('IRR') of 19.7% and capital payback of 3.8
  years from initial production for the Unconstrained model;
  
• 
  Anticipated molybdenum production of approximately 20 million pounds
  per year and anticipated copper production of approximately 17 million
  pounds per year on average over the first five years for the
  Unconstrained model;
  
• 
  Anticipated molybdenum cash costs, inclusive of copper byproduct
  credits, of $5.71 per pound over the first five years for the
  Unconstrained model;
  
• 
  Anticipated average mill grades of 0.094% molybdenum and 0.101% copper
  over the first five years for the Unconstrained model;
  
• 
  598 million pounds of molybdenum and 534 million pounds copper
  estimated to be produced over a 42 year mine life including 26 years
  of primary mining and 16 years of low-grade production for the
  Unconstrained model; and
  
• 
  Estimated initial capital expenditures of $556 million (in 2011
  dollars), excluding working capital and bonding requirements for the
  Unconstrained model.
  

Bruce D. Hansen, Chief Executive Officer, said, 'I am very pleased with
the outcome of the Liberty pre-feasibility study update. Our Liberty
project continues to represent a world-class moly property and one that
provides General Moly shareholders with a significant growth profile as
we continue to focus on building the world's largest publicly-traded
primary moly company. While our immediate focus remains on finalizing
the Mt. Hope project's permitting and financing, our team will also
advance Liberty toward production.

'Although we used a $2.50 per pound copper price assumption in our
resource and economic models , I should note that at current copper
prices near $3.50 per pound, operating costs at Liberty would be below
$5 per pound moly over the first five years of operations and the
project's NPV would increase to approximately $630 million, or $5.71 per
fully-diluted share (including shares anticipated to be issued to
Hanlong), which is over 60% higher than our current share price,
completely ignoring the $1.2 billion Net Present Value of Mt. Hope.'

The Pre-Feasibility Study was completed by M3 Engineering & Technology
Corp with supporting work from Independent Mining Consultants (IMC).

MOLYBDENUM AND COPPER PRODUCTION RATES

Based on the Unconstrained model, the Liberty project is anticipated to
produce an average of 20.4 million pounds of moly and 16.7 million
pounds of copper over the initial five years of operations and 18.7
million pounds of moly and 17.2 million pounds of copper over the first
ten years of operations. Additional operating parameters for both mine
scenarios are provided in the table below.

PROJECT ECONOMICS

Baseline project economics for both scenarios were calculated using $15
per pound molybdenum and $2.50 per pound copper prices.

The Liberty project remains more sensitive to changes in moly prices
than to changes in copper prices. Below is a table illustrating the NPV
in millions of US dollars calculated at a variety of molybdenum and
copper prices. All figures are calculated at an 8% discount rate.

CAPITAL AND OPERATING COSTS

Constructing the Liberty project is anticipated to cost approximately
$556 million (2011 dollars) for the Unconstrained model and $573 million
for the Constrained mode. Other indirect capital costs include working
capital requirements, reclamation bonding requirements of approximately
$14 million, and $6 million payment due to the Liberty property's
previous owner upon commencement of mining operations. Capital costs
have increased from the April 2008 Pre-Feasibility Study primarily as a
result of industry cost inflation. The entire difference in capital
estimates between the two models relates to increased pre-production
stripping in the Constrained model to stay within the private land
boundary. The capital estimate is broken out below.

The capital estimate contains nearly $57 million (including a proportion
of contingency, EPCM and Owners' Cost) for the construction of a
molybdenum roaster capable of roasting 23 million pounds annually.
Roasting costs of $0.42 per pound molybdenum are included in operating
costs listed below. As with Mt. Hope, constructing a roasting facility
rather than toll roasting the molybdenum concentrate is anticipated to
be a NPV positive investment, but the Company will make a final
investment decision based on the evaluation of future market conditions
and toll roasting availability and costs.

Sustaining capital for the Liberty project is anticipated to be $309
million over the life of the mine, primarily reflecting mining equipment
replacement and ongoing tailings dam expansions.

Total cash costs for the Unconstrained model are anticipated to average
$5.71 per pound and $6.05 per pound over the first 5 and 10 years of
operations, respectively, net of byproduct credits. For the Constrained
model, cash costs are anticipated to average $6.65 per pound and $6.74
per pound over the first 5 and 10 years of operations, respectively, net
of byproduct credits. Additional information on operating costs are
presented in the table below.

Anticipated mining costs on a per ton ore basis are presented in the
table below.

MINERAL RESERVES AND RESOURCES

In accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects of the Canadian Securities
Administrators, the Company has delineated proven and probable reserves
and indicated mineral resources. Liberty's reserves and resources, as
determined in accordance with National Instrument 43-101, are
illustrated in the tables below. These tables reflect immaterial changes
to the Mineral Reserves announced by the Company in October 2011 based
on further refinement of the consultant's model.

Notes:

1) Cutoff Grade Equivalent Moly Grade of 0.020%. Equivalent Moly Grade =
Recovered Moly Grade + .126 x Copper Grade.

2) Mineral Reserves are based on the total of all Proven and Probable
material planned for processing with the mine plan based on $12.00/lb Mo
and $2.50/lb Cu.

3) Mineral Resources based on Measured, Indicated and Inferred contained
within a floating cone pit at $15.00/lb Mo and $2.50/lb Cu.

4) Table figures may not add due to rounding

5) Mineral resources contain mineral reserves

6) Tons are U.S. short tons

John Marek, President of Independent Mining Consultants from Tucson,
Arizona, and a Registered Professional Engineer (Arizona and Colorado),
is the Qualified Person responsible for resource modeling and mine
planning pertaining to the Liberty project and has reviewed the
applicable scientific and technical information set out in this news
release. M3 Engineering & Technology Corp is the primary author of the
NI 43-101 report and has reviewed this news release.

ABOUT THE LIBERTY PROJECT

The Liberty project has significant infrastructure already in place,
including a truck shop, offices, tailings dam and an open pit. The site
is accessed through paved roads, has fully permitted water rights, and
sits adjacent to utility power. The previous mining operations, by
Anaconda and Cyprus, provide significant operating history used to
validate mining and metallurgical performance. The site is largely on
privately held ground, has no royalties, and as such provides an
opportunity for initial permitting under Nevada State agencies,
potentially avoiding more lengthy federal upfront permitting. Federal
permits will be required to fully exploit the mineral potential due to
BLM holdings near the open pit and stockpiles .

Baseline environmental studies are currently in progress to prepare
permit applications under either Nevada State or federal permitting
regulations. This early initiation of baseline studies allows for
economic optimization under two mine alternative development scenarios
considered in the study. The State permitting option allows for sooner
development of the project but higher initial capital and operating
costs. This flexibility creates a project that can be timed to take
advantage of market conditions.

* * * *

General Moly is a U.S.-based molybdenum mineral development, exploration
and mining company listed on the NYSE Amex (formerly the American Stock
Exchange) and the Toronto Stock Exchange under the symbol GMO. Our
primary asset, our interest in the Mt. Hope ?project located in central
Nevada, is considered one of the world's largest and highest grade
molybdenum deposits. Combined with our second molybdenum property, the
Liberty project, that is also located in central Nevada, our goal is to
become the largest primary molybdenum producer by the middle of the
decade. For more information on the Company, please visit our website at http://www.generalmoly.com.

Forward-Looking Statements

Statements herein that are not historical facts are 'forward-looking
statements? within the meaning of Section 27A of the Securities Act, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended and are intended to be covered by the safe harbor created by
such sections. Such forward-looking statements involve a number of risks
and uncertainties that could cause actual results to differ materially
from those projected, anticipated, expected, or implied by the Company.
These risks and uncertainties include, but are not limited to, metals
price and production volatility, global economic conditions, currency
fluctuations, increased production costs and variances in ore grade or
recovery rates from those assumed in mining plans, exploration risks and
results, political, operational and project development risks, including
the Company′s ability to obtain required permits to commence production
and its ability to raise required financing, adverse governmental
regulation and judicial outcomes. The closing of the Hanlong transaction
and obtaining bank financing are subject to a number of conditions
precedent that may not be fulfilled. For a detailed discussion of risks
and other factors that may impact these forward looking statements,
please refer to the Risk Factors and other discussion contained in the
Company′s quarterly and annual periodic reports on Forms 10-Q and 10-K,
on file with the SEC. The Company undertakes no obligation to update
forward-looking statements.

Cautionary Note to U.S. Investors Concerning Estimates of Reserves
and Resources

Calculations with respect to 'proven reserves' and 'probable reserves'
referred to above have been made in accordance with, and using the
definitions of National Instrument 43-101, as required by Canadian
securities regulatory authorities. For United States reporting purposes,
the U.S. SEC applies a different standard in order to classify
mineralization as a 'reserve'. Under SEC standards, mineralization may
not be classified as a 'reserve' unless the determination has been made
that the mineralization could be economically and legally extracted or
produced at the time the reserve determination is made. No such
determinations have been made with respect to any mineralization at the
Liberty project, and it cannot be assured that such a determination will
be made. This release also uses the terms 'measured?, 'indicated? and
'inferred? resources. We caution U.S. investors that while such terms
are recognized and required by Canadian Securities Administrators
pursuant to the National Instrument 43-101, the SEC does not recognize
them. U.S. investors are cautioned not to assume that any part of or all
mineral deposits in these categories will ever be converted into
reserves. 'Inferred Resources?, in particular, have a great amount of
uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any
part of an Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian Securities Administration rules, estimates of
Inferred Mineral Resources may not form the basis of feasibility or
pre-feasibility studies. U.S. investors are cautioned not to assume that
part or all of an inferred resource exists, or is economically or
legally minable.

Photos/Multimedia ?Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50074738&lang=en

General Moly

Investors and Business Development

Seth
Foreman, 303-928-8591

sforeman@generalmoly.com

or

Media:

Zach
Spencer, 775-748-6059

zspencer@generalmoly.com

Website:
http://www.generalmoly.com

or

info@generalmoly.com