General Moly Announces Third Quarter 2013 Results

General Moly, Inc. (the "Company") (NYSE MKT and TSX: GMO), a U.S.-based molybdenum mineral development, exploration and mining company, announced its unaudited financial results for the third quarter ended September 30, 2013. Net income for the three months ended September 30, 2013 was $2.6 million ($0.03 per share), compared to a net loss of $2.1 million ($0.02 per share) for the year ago period. The primary reason for the $2.6 million net income during the third quarter was the non-cash accounting treatment associated with the termination of the Securities Purchase Agreement (“Agreement”) between the Company and Hanlong (USA) Mining (“Hanlong”).

In August, 2013, the Company notified Hanlong that it was terminating the Agreement as a result of Hanlong’s failure to procure the China sourced Bank Loan. Hanlong acknowledged the termination, and consented to offset its break fee obligation against the repayment of the Bridge Loan.

Excluding restricted cash, the Company’s cash balance at September 30, 2013 was approximately $26 million compared to $68 million at December 31, 2012 and $35 million at June 30, 2013. During the third quarter, cash use of $9 million was the result of $7 million spent on Mt. Hope Project development costs (plant, construction, engineering, procurement and owner’s cost) as well as $2 million in general and administrative expenses and Liberty related expenditures. In December 2012, the Company and POS-Minerals Corporation, as the members of Eureka Moly, LLC (“EMLLC”), agreed to hold $36 million, due to the Company, of the approximately $100 million received from POS-Minerals’ December, 2012 contributions in a reserve account until the Company arranges full project financing for its 80% share of Mt. Hope Project construction cost.

Bruce D. Hansen, Chief Executive Officer of General Moly, said, "We are actively pursuing financing options in Asia as well as considering a variety of other financing alternatives including equity investments, project level investments and debt financings that we believe are executable. The Company is focused on securing a path forward that minimizes dilution, long term cost and risk to stockholders."

Mr. Hansen added, “To support ongoing due diligence efforts the Company is updating its resource models, mine plan and project economics. This updating effort is expected to be complete in November and will assist in the financing effort.”

Mr. Hansen concluded, “As we proceed towards full financing at Mt. Hope, the Company will continue to prudently manage our unrestricted cash position of $26 million at the end of the third quarter with an additional $36 million in restricted cash, held at EMLLC. The cash reduction plan we implemented in September maintains liquidity by reducing engineering, administrative and procurement expenses, trimming our overall expenses from $2-3 million per month to less than $1.5 million per month going forward. Specifically, our ongoing G&A plus project owner’s costs will average about $1 million per month and other project related spending including equipment purchases, surety bonding and Mt. Hope lease requirements will be limited to approximately $3 million, or $0.5 million per month on average, through the first quarter of 2014.”

MT. HOPE PROJECT WATER RIGHTS AND PERMIT APPEALS UPDATE

Two challenges of the Mt. Hope Project’s water permits were separately appealed to the Nevada Supreme Court (“Supreme Court”) and consolidated by the Supreme Court into one appeal. Briefing has been completed, and the Company is awaiting a setting by the Supreme Court for oral argument, anticipated in early 2014.

In February 2013, two parties filed a Complaint challenging issuance of the Record of Decision (“ROD”) for the Mt. Hope Project. The federal District Court in Nevada (“District Court”) approved EMLLC’s request to intervene in the Complaint. Briefing and probable oral argument challenging the ROD is anticipated to be completed in the first quarter of 2014.

On August 22, 2013 the District Court denied, without prejudice, to re-file the same two parties’ Motion for Preliminary Injunction. The District Court denial specified that upon the Company’s decision to recommence significant ground-disturbing activities approved by the ROD, it is required to provide the two parties with sixty days advance notice. Thereafter, the two parties filing the Complaint may re-file their Motion for Preliminary Injunction.

MT. HOPE PROJECT ENGINEERING AND EQUIPMENT PROCUREMENT UPDATE

Engineering is approximately 65% complete at the Mt. Hope Project. Through September 30, 2013, EMLLC has made deposits of $73.4 million on equipment orders and has paid $12.0 million into an escrow arrangement for electricity transmission services.

EMLLC has now ordered or purchased most of the long-lead milling equipment, haul trucks, mine production drills and has entered into a letter of intent for the purchase of two electric shovels.

Approximately 70% of the planned spend on process equipment has been defined through hard bids and purchase orders and is estimated to remain on budget. Further, approximately 80% of planned spend on mining equipment has been committed with cancelable purchase agreements and is also estimated to remain on budget. Some of the committed spend is subject to Producer Price Index-based escalation and additional holding costs if there are extended delays, and some agreements would be subject to cancellation. The project remains in a construction-ready status pending full project financing.

MOLYBDENUM MARKET UPDATE

During 2013, molybdenum prices traded in a relatively narrow dollar range between $9.20 and $11.90 per pound, according to Ryan’s Notes, a ferro-alloy industry news and pricing publication. Prices are currently trading at $9.60 per pound.

Additional information on the Company’s third quarter 2013 results will be available in General Moly’s 2013 Form 10-Q, which will be filed with the Securities and Exchange Commission and posted on the Company’s website.

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 project, the Liberty Project, a molybdenum and copper property also located in central Nevada, our goal is to become the largest pure play primary molybdenum producer in the world. 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 maintain required permits to continue construction, commence production and its ability to raise required project financing, adverse governmental regulation and judicial outcomes, including appeal of the Record of Decision appeal of water permits and estimates related to cost of production, capital, operating and exploration expenditures. 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.