General Moly Presents Good Neighbor Offer to Eureka Stakeholders

General Moly, Inc. (the 'Company') (NYSE Amex and TSX: GMO) today,
through its 80% controlled subsidiary Eureka Moly, LLC, presented a $12
million global settlement offer ('the Offer') at the Eureka County
commissioners meeting to principally resolve the outstanding water
rights appeal. The Offer is comprised of $3 million immediately upon
signing of an agreement and dismissal of all appeals before the Nevada
District Court and $5 million contributed over time to the Diamond
Valley Sustainability Trust. The funds would augment the existing $4
million Diamond Valley Sustainability Trust announced in August 2010,
and bring the total commitment to $12 million.

Bruce D. Hansen, Chief Executive Officer, said, 'The terms of this offer
represent our Good Neighbor attempt to reach agreement with Eureka
County stakeholders relating to water issues in Diamond Valley and Kobeh
Valley prior to the appeal hearing on April 3rd. We remain extremely
confident that our water rights will be upheld in District Court.
However, the water appeal by the County Commissioners, three growers and
one rancher has been divisive to the community. This offer will help all
growers and ranchers in the community to improve the sustainability of
the Diamond Valley agricultural and ranching economy. We firmly believe
that the total $12 million focused on conservation efforts will help
restore the Diamond Valley water balance that has been declining over
several decades. We encourage the appellants to put their $3 million
portion of this offer into the Sustainability Trust and also encourage
Eureka County to contribute to the Sustainability Trust to support water
conservation, given its significant financial resources.'

The Sustainability Trust Board would remain tasked with developing and
implementing programs that will serve to enhance the sustainability and
well-being of the agricultural economy in the Diamond Valley
Hydrographic Basin through reduced water consumption, which may include
the Trust purchasing and relinquishing water rights in Diamond Valley to
help bring the Diamond Valley basin into a more sustainable water
balance.

The Offer requires that all appeals relating to the Company's water
rights currently before the Nevada District Court be dismissed and that
current appellants agree not to further contest the approval of the
Monitoring Mitigation & Management Plan (the '3M Plan') currently being
developed. The Offer also requires that the parties to the agreement,
including the Eureka County Commissioners, turn their support to our
project and not protest or impede our efforts to secure all final
permits.

Importantly, the Offer does not preclude any stakeholder's ability to
meaningfully participate in the public comment process for any State or
Federal permit nor does it limit any stakeholder's ability to contest
the Company's permits in the future should the Mt. Hope mine not be
operated in accordance with terms and conditions included in issued
permits.

The Offer expires on Friday, March 30, 2012 in anticipation of the
upcoming District Court hearing on the Company's water permits on
Tuesday, April 3, 2012.

Mr. Hansen continued, '2012 is expected to be a year full of significant
milestones for this Company. We anticipate all our State and Federal
permits to be issued in the second or third quarter of this year,
anticipate closing over $800 million in financing shortly following the
BLM's issuance of the ROD, and hope to be constructing our facility
before the end of the year. We want to resolve these disputes over our
water permits quickly and prepare ourselves, our team, and the Eureka
Community for its exciting future. I feel this Offer is more than fair
to all stakeholders involved in our project and hope this Offer can
allow us to move on with our project.'

The table below outlines the detailed timing of payments under the Offer.

(1) Initial payment made to Appellants, all subsequent payments made to
Sustainability Trust

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.

General Moly

Investors and Business Development:

Seth
Foreman, 303-928-8591

sforeman@generalmoly.com

or

Media:

Zach
Spencer, 775-748-6059

zspencer@generalmoly.com

or

Website:
http://www.generalmoly.com

info@generalmoly.com