Source: DSA Corporate Services Inc.

Moly Mines Provides Corporate Growth Strategy Update

TORONTO, ONTARIO--(Marketwire - Dec. 20, 2012) - Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to advise that the Company has conducted a review of its merger and acquisition strategy in consultation with its major shareholder, Hanlong Group (Hanlong).

Hanlong has advised the Company that Hanlong maintains its support for the Company's acquisition strategy and that it will be in a position to financially support an acquisition or project development by the Company from the second half of 2013.

As a consequence, the Company will focus its merger and acquisition strategy in the next six months on near term production opportunities that can be financed independently. Afterwards, when the appetite to commit additional funding is stronger, the Company will consider longer term opportunities that may be financed with Hanlong support as well as under the Strategic Alliance between the Company and China Development Bank signed in December 2011.

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 commodities; 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.

ABN 32 103 295 521

Contact Information:

Moly Mines Limited
Natalie Frame
Investor Relations
+1 416 777 1801
+1 416 371 7541

Moly Mines Limited
Mr. Martijn Bosboom
Company Secretary
+61 8 94293300