Moly Mines Reports Quarter Highlights

TORONTO, ONTARIO--(Marketwire - Jan. 31, 2011) - Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to announce the highlights of their Quarterly Activities Report and Quarterly Cashflow Report available on the Company website (www.molymines.com) and on SEDAR (www.sedar.com).

Spinifex Ridge Iron Ore Operation

• First shipment 30 December 2010 - on schedule.
• 54,500 wet metric tonnes grading 59.1% Fe.
• US$8 million revenue.
• Total production costs to ship's rail in line with expectations at A$85/t shipped for the first two months of operations
• Mining rates to increase to an annualized production rate of 1 million tonne per annum by mid 2011.
• 62% Fe CFR China prices rise to US$170/t at year end - continues to strengthen.

Spinifex Ridge Molybdenum / Copper Project

• Moly Mines receives a commitment letter from China Development Bank (CDB) for up to US$250 million.
• CDB will contribute half of the US$466 million Syndicated Secured Senior Finance Facility (Finance Facility) for development of the molybdenum/copper mine.
• China Export and Import Bank (EXIM) finalizing their credit approval processes.
• National Development Reform Commission (NDRC) approval received for the Finance Facility sponsored equally by CDB and EXIM.
• Draft Term Sheet for the Finance Facility substantially complete following negotiations in Perth, Chengdu and Beijing during and following the quarter.
• Extension to Finance Facility deadline granted to Hanlong.
• Project EPC agreement being negotiated with a partnership of Chinese and Australian engineering groups.

Corporate and Finance

• A$24.1 million cash on hand at end of quarter, with provisional payment of US$7 million received in January 2011 for the first iron ore shipment.

This news release includes "forward-looking statements" as that term within the meaning of securities laws of applicable jurisdictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Moly Mines' control. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this news release, including, without limitation, those regarding Moly Mines' future expectations. Readers can identify forward-looking statements by terminology such as "aim," "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "potential," "predict," "project," "risk," "should," "will" or "would" and other similar expressions. Risks, uncertainties and other factors may cause Moly Mines' actual results, performance, production or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors include the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs currently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange rates between the U.S. dollar and the Australian dollar; failure to recover the resource and reserve estimates of the Project; the failure of Moly Mines' suppliers and service providers to fulfill their obligations under construction, supply and tolling agreements; unforeseen geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labor shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information