General Moly Inc GMOLQ

gmo has broken out

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General Moly* (GMO : TSX : $4.70), Net Change: 0.60, % Change: 14.63%, Volume: 33,329

General Moly* (GMO : AMEX : US$4.83), Net Change: 0.73, % Change: 17.80%, Volume: 4,705,335

Showing off its undervalued-ness. Shares of General Moly were soaring after the company posted its presentation slides

for Thursday's Goldman Sachs Basic Materials Conference 2011. In particular, investors focused on two slides which shined

– Canadian and U.S. Comments for Thursday May 26, 2011 5

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some light on GMO's potential valuation. On the first slide GMO highlighted that by using the same metrics in the recently

announced Mercator Minerals (ML) acquisition of Creston Moly (CMS), GMO shares would be valued at $7.05 per share.

Moving to the next slide, GMO demonstrated the share price potential from its current level to a value of more than $15 per

share using an NPV/share @ $15/lb Mo. Also of note, late last week, GMO's CEO Bruce D. Hansen purchased just over

$99,000 of GMO stock, buying 25,000 shares at $3.97, increasing his holdings by 3.6% to 725,000 shares. General Moly has

two world-class assets, its 80% interest in the Mt. Hope project and the Liberty project. Both are located in central Nevada.

Once production commences at Mt. Hope and Liberty, General Moly expects to become the world's largest primary moly

producer. The Mt. Hope project contains 1.3 billion pounds of proven and probable reserves, with an average process grade of

0.103% molybdenum over the first five years of mining. General Moly owns 80% of Mt. Hope through a joint venture with

POSCO, the world’s fourth-largest steel company. The Liberty project, based on a pre-feasibility study will produce 503 million

pounds of molybdenum over a 33-year mine life. General Moly owns 100% of the Liberty project on a royalty-free basis.