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Moly Mines Enters Strategic Alliance with Molymet

12/20/2007 - Moly Mines and Molibdenos y Metales SA (Molymet) enter into a strategic commercial alliance that would blend Moly Mines’ mining project experience with Molymet’s downstream processing and marketing skills to create an alliance with the potential to deliver financial benefits to the shareholders of both enterprises.

Moly Mines Limited has entered into a strategic commercial alliance with Molibdenos y Metales SA (Molymet) of Chile. The alliance would blend Moly Mines’ mining project experience with Molymet’s downstream processing and marketing skills in a commercial relationship with the potential to deliver significant financial benefits to the shareholders of both enterprises.
 
The Strategic Alliance also provides the framework for future co-operation between the two companies, particularly with respect to the identification of future exploration and mining opportunities.

“Molymet is a world leader in the molybdenum industry, and this alliance is a wonderful endorsement of our development strategy,” said Moly Mines CEO and Managing Director Dr. Derek Fisher. “We are delighted to complete these agreements which formalize our relationship and provide Moly Mines with a platform for further growth and expansion within the molybdenum industry."

To support the early operations of the Alliance, Molymet and Moly Mines also entered into a Tolling Agreement for 100% of molybdenum concentrates produced at the Spinifex Ridge Molybdenum Project. The Tolling Agreement allows for the conversion of Spinifex Ridge molybdenum concentrates to technical grade molybdenum oxide, both in powder and briquettes form and ferro-molybdenum. Both of these products are sold as direct feedstock for specialty steel meltshops.

The companies caution that this announcement does not constitute an offer of securities for sale in the United States, and that securities may not be offered or sold in the U.S. without registration or an exemption from registration. Any public offering of securities to be made in the U.S. would be made by means of a prospectus that would contain detailed information about the company and management, as well as financial statements.
 
Molymet, a publicly owned Chilean corporation, has been processing molybdenum concentrates since 1975. With production facilities in Chile, Mexico, Belgium, and Germany, Molymet treats approximately 150 million pounds of molybdenum concentrates per year at its various facilities, representing approximately 35% of world molybdenum consumption.

The Spinifex Ridge Molybdenum Project has reserves and resources to support a projected 20+ year mine life. Under current plans, the project will produce an average of 24 million pounds/year of molybdenum concentrates.