Molycorp Purchases Remaining Shares of European Rare Earth Processing Company

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 today that it has purchased the remaining
shares of Molycorp Silmet AS, one of only two rare earth processing
companies in Europe. Molycorp now owns 100% of the Sillamäe,
Estonia-based facility, known as Molycorp Sillamäe.

On April 1, 2011, Molycorp purchased a 90.023% stake in AS Silmet in a
transaction valued at approximately $89 million. The purchase price for
the remaining shares was proportionately the same as the price of the
original share acquisition.

'Our purchase of the Silmet facility has proven to be highly accretive
to Molycorp's global operations, and we see this purchase of the
remaining shares of Molycorp Sillamäe as bringing additional value to
our company,' said Mark A. Smith, Molycorp's President and Chief
Executive Officer. 'Molycorp Sillamäe's people and their collective
years of expertise in rare earth and rare metal production, particularly
in the manufacture of high-purity products, are truly world-class. We
are enthusiastically exploring options for additional upgrades and
production expansion at this facility.'

Smith noted that Molycorp recently succeeded in establishing neodymium
metal production at the Sillamäe facility, achieving another key
milestone in Molycorp's build-out of a global mine-to-magnets
manufacturing supply chain.

'I'm very pleased that Mr. Tiit Vähi, Chairman of the Board of AS Silmet
Grupp and former Prime Minister of Estonia, and Mr. Lauri Karp will
remain on the Supervisory Board of Molycorp Sillamäe,' Smith added.
'They provide extraordinary insight and perspective into European
markets, as well as in business strategy and technology development.'

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, +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