Molycorp Announces New Rare Earth Complex is Operational and Ra

FSC / Press Release 
Molycorp Announces New Rare Earth Complex is Operational and Ramping up Toward
Full-Scale Production 
GREENWOOD VILLAGE, CO, January 10, 2013 /FSC/ - Molycorp, Inc. (NYSE: MCP,
"Company")today announced that all key production components of its new
state-of-the-art rare earth manufacturing complex in Mountain Pass, California
are up and operational and that the facility has begun ramping up to its
full-scale "Phase 1" run rate. 
The Company expects that with an orderly ramp up of production it will reach or
exceed its Phase 1 run rate of 19,050 metric tons per year (mt/year) of rare
earth oxide equivalent (REO) by mid-year. 
"Mountain Pass is the world's largest, most technologically advanced and most
environmentally responsible rare earth manufacturing complex ever built, and
reaching operational status is a historic event.  I am very proud of the work of
the entire Molycorp team in achieving this extraordinary milestone," said
Molycorp President and Chief Executive Officer Constantine Karayannopoulos. 
The Mountain Pass complex is designed to be able to allow for expanded
production to a "Phase 2" rate of as much as 40,000 mt/year of rare earth oxide
equivalent.  However, the Company stated that, while most of the equipment
necessary to complete Project Phoenix Phase 2 is already on site, the decision
to complete Phase 2 construction and start-up will not be made until market
demand, product pricing, capital availability, and financial returns justify
additional increases in production beyond Phase 1. 
Company officials said that controlling capital and operating costs continues to
be a top priority.  With the combination of the new Phase 1 ramp-up schedule and
current rare earth pricing environment, the Company anticipates lower than
expected revenue and cash flow for 2013, and is evaluating its capital needs for
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Jim Sims, +1 (303) 843-8062
Vice President Corporate Communications 
Brian Blackman, +1 (303) 843-8021
Senior Manager, Investor Relations 
Molycorp is a globally integrated, advanced materials manufacturer that produces
a wide variety of specialized products from 13 different rare earths (lights and
heavies), five rare metals (gallium, indium, rhenium, tantalum and niobium), and
the transition metals yttrium and zirconium. It is the only advanced material
manufacturer in the world that both controls a world-class rare earth resource
and can produce high-purity, custom engineered rare earth products to meet
increasingly demanding customer specifications.  With 26 locations across 11
countries, the Company also produces rare earth magnetic materials through its
Molycorp Magnequench subsidiary, including neodymium-iron-boron (NdFeB) magnet
powders, used to manufacture bonded NdFeB permanent rare earth magnets. Through
its joint venture with Daido Steel and the Mitsubishi Corporation, Molycorp
manufactures next-generation, sintered NdFeB permanent rare earth magnets.
Through its Molycorp Advanced Water Technologies subsidiary, the Company markets
and sells its proprietary, cerium-based advanced water purification technology
called SorbX(tm) for use in municipal and industrial wastewater treatment,
recreational water, and pool and spa water treatment markets. For more
information please visit 
This release contains forward-looking statements that represent Molycorp's
beliefs, projections and predictions about future events or Molycorp's future
performance. Forward-looking statements can be identified by terminology such as
"may," "will," "would," "could," "should," "expect," "intend," "plan,"
"anticipate," "believe," "estimate," "predict," "potential," "continue" or the
negative of these terms or other similar expressions or phrases. These
forward-looking statements are necessarily subjective and involve known and
unknown risks, uncertainties and other important factors that could cause
Molycorp's actual results, performance or achievements or industry results to
differ materially from any future results, performance or achievement described
in or implied by such statements. 
Factors that may cause actual results to differ materially from expected results
described in forward-looking statements include, but are not limited to:  the
potential need to secure additional capital to implement Molycorp's business
plans, and Molycorp's ability to successfully secure any such capital;
Molycorp's ability to complete its planned capital projects, such as its
modernization and expansion efforts, including the achievement of an annual
production rate of 19,050 metric tons at the Mountain Pass rare earth mine and
processing facility, which management refers to as Project Phoenix Phase 1, and
the second phase capacity expansion plan, which management refers to as Project
Phoenix Phase 2, and reach full planned production rates for REO and other
planned downstream products, in each case within the projected time frame; the
success of Molycorp's cost mitigation efforts in connection with Project
Phoenix, which if unsuccessful, might cause its costs to exceed budget; the
final costs of Molycorp's planned capital projects, such as Project Phoenix
Phase 1 and Project Phoenix Phase 2, which may differ from estimated costs;
Molycorp's ability to successfully integrate Neo Material Technologies, Inc.
(now Molycorp Canada), with its operations; Molycorp's ability to achieve fully
the strategic and financial objectives related to the acquisition of Molycorp
Canada, including the acquisition's impact on Molycorp's financial condition and
results of operations; and unexpected costs or liabilities that may arise from
the acquisition, ownership or operation of Molycorp Canada.  Also as a result of
the Molycorp Canada acquisition, Molycorp's business performance may be
materially affected by a number of other factors and uncertainties including,
but not limited to: the rate of exchange of the U.S. dollar to the Canadian
dollar, the Japanese yen, and the Chinese Renminbi; new products pricing; the
competitive environment for these new products; unexpected actions of domestic
and foreign governments; and various events which could disrupt operations,
including natural events and other risks. Other risk factors and uncertainties
that may cause actual results to differ materially from expected results
include: uncertainties associated with Molycorp's reserve estimates and
non-reserve deposit information, including estimated mine life and annual
production; uncertainties related to feasibility studies that provide estimates
of expected or anticipated costs, expenditures and economic returns, REO prices,
production costs and other expenses for operations, which are subject to
fluctuation; uncertainties regarding global supply and demand for rare earths
materials; uncertainties regarding the results of Molycorp's exploratory
drilling programs; Molycorp's ability to enter into additional definitive
agreements with its customers and its ability to maintain customer
relationships; Molycorp's sintered neodymium-iron-boron rare earth magnet joint
venture's ability to successfully manufacture magnets within its expected
timeframe; Molycorp's ability to successfully integrate other acquired
businesses; Molycorp's ability to maintain appropriate relations with unions and
employees; Molycorp's ability to successfully implement its "mine-to-magnets"
strategy; environmental laws, regulations and permits affecting Molycorp's
business, directly and indirectly, including, among others, those relating to
mine reclamation and restoration, climate change, emissions to the air and water
and human exposure to hazardous substances used, released or disposed of by
Molycorp; and uncertainties associated with unanticipated geological conditions
related to mining. 
For more information regarding these and other risks and uncertainties that
Molycorp may face, see the section entitled "Risk Factors" of the Company's
Annual Report on Form 10-K for the year ended December 31, 2011 and of the
Company's Quarterly Reports on Form 10-Q. Any forward-looking statement
contained in this release or the Annual Report on Form 10-K or the Quarterly
Reports on Form 10-Q reflects Molycorp's current views with respect to future
events and is subject to these and other risks, uncertainties and assumptions
relating to Molycorp's operations, operating results, growth strategy and
liquidity. You should not place undue reliance on these forward-looking
statements because such statements speak only as to the date when made. Molycorp
assumes no obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results could differ
materially from those anticipated in these forward-looking statements, even if
new information becomes available in the future, except as otherwise required by
applicable law. 
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-0- Jan/10/2013 12:00 GMT
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