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September 07, 2008


Moly Mines enters strategic alliance with Molibdenos

Moly Mines Limited announced that it has entered into a strategic commercial alliance with Molibdenos y Metales SA of Chile. This powerful alliance brings together what is planned to be the world's next major molybdenum miner with the world's largest producer of molybdenum finished products.

The alliance blends the mining project experience of Moly Mines with the downstream processing and marketing skills of Molymet in a commercial relationship that aims to deliver significant financial benefits to the shareholders of both enterprises. The Strategic Alliance provides the framework for future co operation between the two companies, particularly with respect to the identification of future exploration and mining opportunities.

In the first undertaking of the Alliance, Molymet and Moly Mines have entered into a Tolling Agreement for 100% of molybdenum concentrates produced at the Company's Spinifex Ridge Molybdenum Project. The Tolling Agreement allows for the conversion of Spinifex Ridge molybdenum concentrates to technical grade molybdenum oxide, both in powder and briquettes form and ferromolybdenum. Both of these products are direct feed into the furnaces of the specialty steel industry. The Spinifex Ridge Molybdenum Project has reserves and resources to support a projected 20+ year mine life and under current plans it will produce an average, 24mlb per annum of molybdenum in concentrate.

Dr Derek Fisher CEO & MD of Moly Mines said that "Molymet is a world leader in the molybdenum industry and this alliance is a wonderful endorsement of our development strategy. We are delighted to complete these agreements which formalize our relationship and provides Moly Mines with a platform for further growth and expansion within the molybdenum industry."

Molymet is a publically owned Chilean corporation listed on the Santiago Stock Exchange and has been processing molybdenum concentrates since 1975. it has production facilities in Chile, Mexico, Belgium and Germany and treats approximately 150 million short ton per annum of molybdenum in concentrates at its various facilities, representing approximately 35% of world molybdenum consumption.