Jun 29, 2007 09:26 ET

Moly Mines Poised to Settle Sale of New South Wales Gold Assets

Spinifex Ridge Molybdenum / Copper Update

TORONTO, ONTARIO--(Marketwire - June 29, 2007) - Moly Mines Limited, (TSX:MOL) (ASX:MOL) is pleased to announce that the shareholders of Cortona Resources Limited ("Cortona") today overwhelmingly approved Cortona's acquisition of Moly Mines New South Wales Gold Assets.

Under the terms of a binding term sheet signed in February 2007, Moly Mines will sell these assets to Cortona for:

- $5 million cash;

- 12 million fully paid ordinary shares in Cortona (currently trading at A$0.40/share);

- 8 million options in Cortona exercisable at $0.35, expiring 2 years from the date of issue; and

- a further 8 million options, exercisable at $0.50 (Royalty Options).

The Royalty Options will not vest until either the successful delineation of a total of 1 million ounces of measured and / or indicated resource (in accordance with the requirements of the JORC code) from the New South Wales Gold Assets OR a decision to mine is made on any of the New South Wales Gold Assets.

In addition to the Royalty Options, on achievement of either of these royalty milestones, Moly Mines will receive a further $4 million cash payment.

Both Moly Mines and Cortona will now execute all final documentation to allow settlement to occur, anticipated by July 15, 2007.

The sale of the New South Wales Gold Assets will complete Moly Mines' transition to a pure molybdenum and base metals company at a time when the Feasibility Study for the Spinifex Ridge Molybdenum / Copper deposit is concluding.

Spinifex Ridge Update

- Moly Mines has commissioned the Spinifex Ridge Feasibility Study principal engineer and project manager WorleyParsons, to undertake a scoping study for a 50% expansion to the base case Feasibility Study 1517 million tonne of ore per annum. This 25 million tonne per annum scoping study is being undertaken by a separate engineering team to that currently finalising the Feasibility Study.

- In May 2007, Moly Mines advised that it had completed a binding agreement with Polysius (a subsidiary of ThyssenKrupp) for the manufacture of the long lead items of the Primary Crusher, 2 Ball Mills and 2 HPGR units for the Spinifex Ridge 1517 million tonne per annum treatment plant. This order secured the project start up timeline for Spinifex Ridge of 2nd quarter 2009. First payment to Polysius has been made. In addition, Moly Mines is amending the order of the Primary Crusher to ensure it is capable treating the 25 million tonnes of ore per annum level being considered in the scoping study mentioned above.

- Leading international engineering consultants Behre Dolbear Australia Pty Ltd have been appointed independent technical experts to the Spinifex Ridge Feasibility Study. Behre Dolbear will conduct a detailed technical due diligence of the Spinifex Project for use by potential lenders and equity participants in the total project financing solution for Spinifex Ridge.

- Final reports are being received and collated for the Spinifex Ridge Feasibility Study. The large volume of material, additional QA/QC procedures and confirmation of pricing and delivery of certain key inputs has caused a small delay (estimated at 2 - 3 weeks) in the finalisation of the Feasibility Study document.

- World molybdenum prices remain strong (US$32.00/lb) as the market awaits finalisation of export quota restrictions from China.