Molycorp, Inc. : Molycorp Announces New Rare Earth Complex is Operational and Ramping Up Toward Full-Scale Production

Molycorp, Inc. : Molycorp Announces New Rare Earth Complex is Operational and
                   Ramping Up Toward Full-Scale Production

Molycorp LogoGREENWOOD VILLAGE, CO (January 10, 2013) - 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 2013.

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FOR MORE INFORMATION:

Jim Sims, +1 (303) 843-8062
Vice President Corporate Communications
Jim.Sims@Molycorp.com

Brian Blackman, +1 (303) 843-8021
Senior Manager, Investor Relations
Brian.Blackman@Molycorp.com

ABOUT MOLYCORP

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
www.molycorp.com.

SAFE HARBOR STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

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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Source: Molycorp, Inc. via Thomson Reuters ONE
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