Molybdenum prices declined gradually during the first quarter of 2009, falling in 11 of the first 13 weeks of the year. The monthly Platts Metals Week published molybdenum oxide price averaged USD 8.94 per pound during the quarter. For the month of April 2009, this published price declined further to an average USD 7.90 per pound.

Based on market trends experienced in the January to April period, the Company expects its average realized price to be lower in the second quarter than in the first quarter of 2009. Additionally, the Company's sales volumes are expected to be less during the 2009 second quarter as the Company continues its efforts to match production with the anticipated level of sales.

For 2009, previous guidance for molybdenum production levels of 20 to 24 million pounds remains unchanged. Expected production from the Thompson Creek Mine is 15 to 17 million pounds and the company's 75% share of Endako Mine's expected production is 5 to 7 million pounds.

Given the lower cash cost per pound produced for the 2009 first quarter, the anticipated average cash cost per pound produced in 2009 has been revised to an estimated USD 6.25 to USD 7.25 per pound, with the Thompson Creek Mine expected to be approximately USD 6.00 to USD 7.00 per pound and the Endako Mine at an estimated cash cost of USD 7.00 to USD 8.00 per pound.

The revised 2009 Thompson Creek Mine cash cost per pound produced includes approximately USD 30 million of stripping costs, amounting to USD 1.75 to USD 2.00 per pound produced related to future planned production phases. The 2009 Endako Mine operating plan has minimal stripping costs.

For 2009, its share of estimated sustaining capital expenditures at both mines and the Langeloth Metallurgical Facility is expected to be USD 38 million and its 75% share of the estimated Endako mill expansion capital expenditures is expected to be USD 22 million.

The company's 2009 sales of molybdenum produced from its own mines are expected to be 20 to 24 million pounds, with additional sales of molybdenum purchased, processed and resold in 2009 expected to be 3 to 4 million pounds.

It believes the long term outlook for its business is positive. It is positioned to react quickly to further changes in the molybdenum market in order to ensure that working capital levels are maintained. Operating cash flows will be impacted by approximately USD 20 to USD 24 million for every USD 1 per pound change in the molybdenum price.