General Moly Announces Capital Cost Update and Letter of Intent to Provide Additional Capital

On July 31, 2012, General Moly (the 'Company') (NYSE MKT and TSX: GMO)
announced an update to the Mt. Hope Project's capital cost estimate,
which has increased by $130 million or 11% in total. In addition, the
Company has entered into a non-binding letter of intent with Hanlong
(USA) Mining ('Hanlong') to provide additional capital to the Mt. Hope
Project, which is anticipated to meet the incremental project funding
requirements.

MT. HOPE PROJECT CAPITAL ESTIMATE

The Company has completed its review of capital cost requirements for
the Mt. Hope Project based on current major equipment, labor, and
material pricing and further engineering definition. The project capital
was also updated for currently known permitting and regulatory
requirements and includes the schedule impacts of permitting delays
since the previous September 2008 feasibility study update, which was
reconfirmed in November, 2009. The Mt. Hope Project has not materially
changed in scope and is currently designed at 60% engineering completion
with solid scope definition. Over this 4 year period, the overall
capital requirement estimate now totals $1,284 million of which $197
million has already been spent. General Moly's 80% share of the increase
is $104 million.

The largest affected category of the estimate is owners' cost which
increased 48% or $82 million, driven primarily by schedule delays
largely attributed to an extended permitting timeline, as well as
increased actual and forecasted permitting costs, driven by additional
permitting requirements. The mining equipment category increased by 12%.
Over 70% of the initial mining fleet is now committed with firm pricing,
under purchase agreements.

Construction, materials and plant facility costs are now estimated to be
$582 million, an increase of 11% or $59 million over the previous
estimate, driven primarily by construction labor costs and the pricing
for specialized process equipment, although we have benefited from our
strategically placed equipment orders for primarily crushing and
grinding equipment in 2007 and 2008 resulting in lower pricing than
currently available.

Before bonding and pre-paid items the capital cost estimate increased by
$176 million or 17%. The reclamation bonding requirement grew by $10
million to a forecasted $75 million, representing a 15% increase, offset
by an estimate that $56 million of the bonding requirement can now be
funded through a surety arrangement, based on advanced discussions with
surety providers.

The anticipated capital requirements for the Mt. Hope Project are
divided into cost categories in the following table:

FINANCING PLAN UPDATE

The Company also announced that it has entered into a non-binding letter
of intent (LOI) with Hanlong to provide or arrange up to $125 million in
subordinated debt to supplement a previously announced $665 million
Chinese sourced term loan that is being negotiated with China
Development Bank (CDB). The terms of this LOI with Hanlong include the
initial availability of $75 million (Tranche A) during the Mt. Hope
Project′s construction period. An additional $50 million (Tranche B)
becomes available for the 6 month period post construction. The $125
million facility can be reduced to the extent equipment is leased.
Consideration to Hanlong will include a fee of $ 6.25 million, payable
upon closing of the CDB term loan, plus warrants with a 2.5 year
maturity to purchase ten million shares of common stock. The warrants
will be priced at a 15% premium to the 10 day volume weighted average
price (VWAP) before the signing of a definitive loan agreement. Both
Tranche A & B, if drawn, will mature in 5 years from the Mt. Hope
Project′s achievement of commercial production and will have mandatory
prepayments of 50% of the Company′s free cash flow, after the senior CDB
term loan′s debt service.

The Hanlong facility will be subordinated to the CDB term loan, with
similar covenants to the CDB facility, and will have an interest rate of
LIBOR +4%.

As announced on February 16, 2012, CDB has confirmed the basic terms
underlying a proposed $665 million term loan to finance the Mt. Hope
Project, including a CDB intention to lend $399 million and arrange a
consortium of Chinese and international banks to fund the remaining
balance. The term loan is anticipated to carry a maturity of 12 years
including a 30 month grace period to allow for the construction of the
Mt. Hope Project. The interest rate will remain subject to market
conditions and Chinese government policy until loan documentation is
completed later this year. The Company and Hanlong are continuing to
work with CDB with a target of having the term loan completed, approved
and available to the Company shortly after receipt of the Mt. Hope
Project′s operating permits.

Once the CDB term loan is in place and required permits are received,
the Company intends to close on Hanlong′s Tranche 2 equity purchase for
$40 million, bringing Hanlong′s share position in the Company to 25% on
a fully-diluted basis prior to the warrants referred to above.

When final permits are received, POS-Minerals Corporation (a 20% owner
of the Mt. Hope Project) is anticipated to fund its final $56 million
initial contribution, plus 20% of all costs the Company has spent on the
Mt. Hope Project to date. The Company estimates this combined payment
will be approximately $100 million. Thereafter, the Mt. Hope Project
will be funded 80% by the Company and 20% by POS-Minerals Corporation.

Bruce D. Hansen, Chief Executive Officer of General Moly, said 'I am
very pleased that the Mt. Hope Project has not seen the type of
extraordinary escalation in its capital estimate as other projects have
recently realized. Although an 11% increase is not an insignificant
amount, we have benefited by the advanced engineering and scope
definition for the Mt. Hope Project, and the fact that the 2008 estimate
was completed pre-financial crisis, along with the previously purchased
or contracted major long lead items that have not been subject to
significant price escalation.

'We will continue to review our capital estimate as we approach
construction which remains on track following receipt of the final
permits anticipated by the end of the year.? Hansen continued, 'General
Moly continues to receive tremendous support from Hanlong in funding the
project, and we look forward to closing this facility with Hanlong and
completing the senior loan with China Development Bank.?

General Moly is a U.S.-based molybdenum mineral development, exploration
and mining company listed on the NYSE MKT (formerly the NYSE AMEX) 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 equity
purchase transaction is subject to a number of conditions precedent that
may not be fulfilled. The bank financing and subordinated loans are
subject to final negotiation and satisfaction of conditions precedent.
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

Dave Chaput, 303-928-8591

info@generalmoly.com

or

Media

Zach
Spencer, 775-748-6059

zspencer@generalmoly.com

or

Website:
http://www.generalmoly.com