General Moly has closed its sale of the first tranche of equity to Hanlong (USA) Mining Investment Inc for USD 40 million. The transaction included 11,843,341 shares of General Moly common stock, representing a 12.5% fully diluted interest for USD 40 million.

The first equity tranche is part of a larger financing commitment originally announced March 5th 2010 whereby Hanlong has committed to provide a total of USD 745 million in financing to General Moly including a USD 665 million bank loan Hanlong will source and guarantee. In addition, Hanlong is obligated to purchase a 25% fully diluted interest in the company for USD 80 million in two equal tranches, the first of which closed today. The second USD 40 million equity tranche is scheduled to close once the company receives permits for its Mt. Hope project and when the bank loan becomes available. The entire transaction with Hanlong is expected to provide all remaining capital necessary to place the Mt Hope project into production.

General Moly has been advised by Cutfield Freeman & Co on the Hanlong transaction.

Pursuant to the Hanlong agreement announced March 4th 2010, Hanlong may nominate a director to the company's board of directors at the closing of both tranches of equity Hanlong is anticipated to purchase in General Moly. At the closing of the first USD 40 million equity tranche, Hanlong has nominated Mr Hui (Steven) Xiao to the Company's Board of Directors, expanding the board to ten, including seven independent Directors.