General Moly Announces Fourth Quarter and Full Year 2012 Results

  General Moly Announces Fourth Quarter and Full Year 2012 Results

Business Wire

LAKEWOOD, Colo. -- March 8, 2013

General Moly, Inc. (the "Company") (NYSE MKT:GMO) (TSX:GMO), a U.S.-based
molybdenum mineral development, exploration and mining company, announced its
unaudited financial results for the fourth quarter and full year ended
December 31, 2012. Net loss for the three months ended December 31, 2012 was
$2.0 million ($0.03 per share), compared to a loss of $2.9 million ($0.03 per
share) for the year ago period. Net loss for the full year ended December 31,
2012 was $9.9 million ($0.11 per share), compared to a loss of $14.8 million
($0.16 per share) for the year ago period.

The Company’s cash balance at December 31, 2012 was $68.3 million not
including restricted cash compared to $22.4 million at September 30, 2012.
During the fourth quarter, cash use of $22 million was the result of $18
million in Mt. Hope Project development, engineering and procurement costs and
$4 million in General and Administrative expenses. This cash use was more than
offset by the receipt of $104 million in contribution payments from
POS-Minerals Corporation, a 20% joint venture partner on the Mt. Hope Project.
The members of Eureka Moly, General Moly and POS-Minerals, agreed that $36
million of the contribution be held in a reserve account to maintain
additional liquidity pending confirmation of a previously announced $665
million Chinese sourced Term Loan that is being negotiated with China
Development Bank (“CDB”).

Bruce D. Hansen, Chief Executive Officer of General Moly, said "We achieved a
number of significant milestones in 2012, including receipt of all major
federal and state operating permits for the Mt. Hope Project and the
initiation of preliminary construction activities at the site. We also
received more than $100 million in additional financing from POS-Minerals.
Looking into 2013, we are moving aggressively to conclude our financing and
start heavy construction at Mt. Hope in the spring. We will also push forward
with feasibility work and permitting on Liberty, our second world-class
molybdenum project, after Mt. Hope has commenced heavy construction."

MT. HOPE PROJECT PERMITTING UPDATE

As announced on October 12, 2012, the Mt. Hope Final Environmental Impact
Statement (“EIS”) Notice of Availability was published in the Federal
Register. The public review period for the Final EIS ended on November 13,
2012. On November 16, 2012 the U.S. Bureau of Land Management issued a Record
of Decision (“ROD”) authorizing development of the Mt. Hope Project.

In addition to the ROD, three Nevada state-issued permits, the Air Quality
Permit, the Reclamation Permit and the Water Pollution Control Permit were
viewed as major environmental permits for the Mt. Hope Project. The Air
Quality Permit was received on May 30, 2012, the Reclamation Permit was
received on November 20, 2012 and the Water Pollution Control Permit was
received on November 21, 2012.

Additionally, the State Archeologist at the Nevada State Office of the Bureau
of Land Management issued an Archaeological Resource Protection Act Permit for
the Mt. Hope Project treatment plan on November 29, 2012. On December 26,
2012, the Public Utilities Commission of Nevada granted a permit to construct
a 230 kV power line that interconnects with Nevada Energy’s transmission
system at the existing Machacek Substation located near the town of Eureka, NV
and extend it approximately 25 miles to the planned Mt. Hope Substation.

MT. HOPE PROJECT FINANCING UPDATE

After the ROD and three major Nevada state-issued permits were received,
POS-Minerals Corporation pursuant to the terms of the LLC agreement for the
development and operation of the Mt. Hope Project funded its final $56 million
initial contribution, plus 20% of all costs the Company has spent on the Mt.
Hope Project to date for a combined total payment of approximately $104
million. Hereafter, the Mt. Hope Project will be funded 80% by the Company and
20% by POS-Minerals Corporation. The members of Eureka Moly, General Moly and
POS-Minerals, agreed that $36 million of the contribution be held in a reserve
account to maintain additional liquidity pending confirmation of a previously
announced $665 million Chinese sourced Term Loan that is being negotiated with
China Development Bank.

As previously announced, the Company and Hanlong (USA) Mining (“Hanlong”) on
October 26, 2012, signed a Subordinated Loan Agreement (“Sub Debt Facility”)
under which Hanlong agreed to provide up to $125 million subject to certain
conditions to assist the Company in financing capital cost increases. The Sub
Debt Facility supplements a previously announced $665 million Chinese sourced
Term Loan that is being negotiated with China Development Bank. The Company
had previously announced a letter of intent related to this facility with
Hanlong on August 1, 2012. Under the Sub Debt Facility, Hanlong will lend in
two tranches. Tranche A in the amount of $75 million will be available to the
Company during the Mt. Hope Project’s construction period. Tranche B, in the
amount of $50 million, will be available during the six-month period following
the commencement of commercial production. Tranche A of the Sub Debt Facility
can be reduced to the extent equipment is leased for the Mt. Hope Project by
Eureka Moly, LLC. Both tranches of the Sub Debt Facility will mature 5 years
after the achievement of commercial production at the Mt. Hope Project and
will have mandatory payments of 50% of the Company’s semi-annual net free cash
flow after debt service payments on the CDB term loan and any other Mt. Hope
Project funding requirements. The Sub Debt Facility will be subordinated to
the CDB term loan, with covenants to follow the Term Loan, and will bear
interest at 6-month LIBOR plus 4%, with interest paid semi-annually.

MT. HOPE PROJECT CONSTRUCTION UPDATE

Early construction activities are progressing as planned at the Mt. Hope
Project site including cultural clearance, clearing and grubbing, wood
harvesting, and the development of wells and water pipelines. Kautz
Environmental Consultants has completed field mitigation activities for all 32
cultural sites identified in the Phase I Cultural Mitigation of the initial
construction program. Official releases from the Bureau of Land Management and
the State Historical Preservation Office have been obtained for 27 of the 32
cultural sites. Ames Construction mobilized in early January and has since
cleared and grubbed approximately 1,000 acres in preparation for starting
major earthworks. The mine, process plant, and tailings dam areas and
associated roads have been substantially cleared. Ames has also commenced work
on eight miles of water pipeline to supply construction water from the
permitted well field to the plant site and will next establish site
construction offices and communication systems. Additionally, TIC will soon
begin the installation of seven miles of electrical power lines and will
install the pumping stations to support the approximately 2,000 gallons per
minute of construction water in preparation for heavy earthworks in the
spring.

MT. HOPE PROJECT ENGINEERING AND EQUIPMENT PROCUREMENT UPDATE

Engineering efforts, which were paused in March 2009, were restarted in 2012
by M3 Engineering & Technology. Through December31, 2012, Eureka Moly LLC has
made deposits of $69.7 million on equipment orders and has paid $12.0 million
into an escrow arrangement for electricity transmission services.

The Company has now ordered or purchased most of the long-lead milling
equipment, haul trucks, mine production drills, and has entered into a
non-firm agreement for the purchase of electric shovels. While equipment
procurement has restarted, firm orders for some loading equipment and other
process equipment will be placed shortly after completion of project financing
expected before mid year 2013.

MOLYBDENUM MARKET UPDATE

During 2012, molybdenum prices traded in a relatively narrow dollar range
between $10.83 and $14.95 per pound, according to Ryan’s Notes, a ferro-alloy
industry news and pricing publication. Prices are currently trading at $11.25
per pound.

Additional information on the Company’s fourth quarter 2012 results will be
available in General Moly’s 2012 Form 10-K, which will be filed with the
Securities and Exchange Commission and posted on the Company’s website.

                                                     
GENERAL MOLY, INC.

(A DEVELOPMENT STAGE COMPANY)

CONSOLIDATED BALANCE SHEETS

(In thousands except per share amounts)
                                                                             
                                   December 31,                 December 31,

                                   2012                         2011
ASSETS:
CURRENT ASSETS
Cash and cash equivalents          $   68,331                   $   40,709
Deposits, prepaid expenses         136                          105
and other current assets
Total Current Assets               68,467                       40,814
Mining properties, land and        170,967                      143,732
water rights — Note 4
Deposits on project
property, plant and                69,691                       66,474
equipment
Restricted cash held at            36,000                       —
EMLLC
Restricted cash held for           12,013                       12,005
electricity transmission
Restricted cash held for           6,991                        1,133
reclamation bonds
Non-mining property and            605                          819
equipment, net
Capitalized debt issuance          17,794                       3,136
and loan commitment costs
Other assets                       2,994                        2,994
TOTAL ASSETS                       $   385,522                  $   271,107
LIABILITIES, CONTINGENTLY
REDEEMABLE NONCONTROLLING
INTEREST AND EQUITY:
CURRENT LIABILITIES
Accounts payable and accrued       $   10,133                   $   4,568
liabilities
Accrued advance royalties          500                          8,950
Accrued payments to
Agricultural Sustainability        4,000                        2,000
Trust and Hanlong
Current portion of long term       10,906                       10,596
debt
Total Current Liabilities          25,539                       26,114
Provision for post closure
reclamation and remediation        627                          587
costs
Deferred gain                      1,100                        1,150
Accrued advance royalties          4,700                        —
Accrued payments to
Agricultural Sustainability        2,000                        2,000
Trust
Long term debt, net of             661                          131
current portion
Other accrued liabilities          875                          —
Total Liabilities                  35,502                       29,982
                                                                             
COMMITMENTS AND
CONTINGENCIES — Note 10
                                                                             
CONTINGENTLY REDEEMABLE            201,880                      98,073
NONCONTROLLING INTEREST
                                                                             
EQUITY
Common stock, $0.001 par
value; 200,000,000 shares
authorized, 91,333,092 and         91                           91
90,818,248 shares issued and
outstanding, respectively
Additional paid-in capital         270,902                      255,894
Accumulated deficit before         (213         )               (213         )
exploration stage
Accumulated deficit during
exploration and development        (122,640     )               (112,720     )
stage
Total Equity                       148,140                      143,052
TOTAL LIABILITIES,
CONTINGENTLY REDEEMABLE            $   385,522                  $   271,107
NONCONTROLLING INTEREST AND
EQUITY
                                                                             
                                                                             

                                                                 
GENERAL MOLY,INC.

(A DEVELOPMENT STAGE COMPANY)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except per share amounts)
                                                                                   
                                                                       January 1,
                                                                       2002

                        Years Ended                                    (Inception
                                                                       of

                                                                       Exploration
                                                                       Stage)
                                                                       to
                        December       December        December
                        31,          31,           31,             December
                                                                       31,
                        2012           2011            2010
                                                                       2012
REVENUES                $ —            $ —             $ —             $  —
                                                                                   
OPERATING
EXPENSES:
Exploration and         778            1,568           623               40,479
evaluation
Writedowns of
development and         —              3,403           5,038             8,819
deposits
General and
administrative          10,600         10,248          10,919            80,375
expense
TOTAL OPERATING         11,378         15,219          16,580            129,673
EXPENSES
                                                                                   
LOSS FROM               (11,378  )     (15,219   )     (16,580   )       (129,673 )
OPERATIONS
                                                                                   
OTHER
INCOME/(EXPENSE):
Interest and            6              21              13                4,068
dividend income
Interest expense        (548     )     (250      )     (164      )       (962     )
Realized gain
from sale of            2,000          —               —                 2,000
mining properties
TOTAL OTHER
(EXPENSE)/INCOME,       1,458          (229      )     (151      )       5,106
NET
                                                                                   
LOSS BEFORE             (9,920   )     (15,448   )     (16,731   )       (124,567 )
INCOME TAXES
                                                                                   
Income Taxes            —              —               —                 —
                                                                                   
CONSOLIDATED NET        $ (9,920 )     $ (15,448 )     $ (16,731 )     $  (124,567 )
LOSS
Less: Net loss
attributable to
contingently            —              680             1,008             1,927
redeemable
noncontrolling
interest
NET LOSS
ATTRIBUTABLE TO         $ (9,920 )     $ (14,768 )     $ (15,723 )     $  (122,640 )
GENERAL MOLY,
INC.
Basic and diluted
net loss
attributable to         $ (0.11  )     $ (0.16   )     $ (0.22   )
General Moly per
share of common
stock
Weighted average
number of shares        91,230         90,588          72,987
outstanding —
basic and diluted
                                                                                   
COMPREHENSIVE           $ (9,920 )     $ (14,768 )     $ (15,723 )     $  (122,640 )
LOSS
                                                                           
                                                                                   

                                                                  
GENERAL MOLY, INC.

(A DEVELOPMENT STAGE COMPANY)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)
                                                                                    
                                                                        January 1,
                                                                        2002

                         Years Ended                                    (Inception
                                                                        of

                                                                        Exploration
                                                                        Stage)
                                                                        to
                         December       December        December
                         31,          31,           31,             December
                                                                        31,
                         2012           2011            2010
                                                                        2012
CASH FLOWS FROM
OPERATING
ACTIVITIES:
Net loss                 $ (9,920 )     $ (15,448 )     $ (16,731 )       (124,567 )
Adjustments to
reconcile net loss
to net cash used
by operating
activities:
Depreciation and         310            412             335             1,954
amortization
Interest expense         548            250             164             962
Warrant repricing        —              —               965             965
Stock-based
compensation for         1,414          1,713           1,641           18,226
employees and
directors
(Increase)
Decrease in              (31      )     43              31              (44         )
deposits, prepaid
expenses and other
(Increase)
Decrease in
restricted cash          (8       )     —               281             (12,013     )
held for
electricity
transmission
(Decrease)
increase in
accounts payable         (3,569   )     (10,761   )     93              (10,872     )
and accrued
liabilities
Increase
(decrease) in post
closure                  40             16              (15       )     418
reclamation and
remediation costs
Recognition of
income related to        (2,000   )     —               —               (2,000      )
option to purchase
agreement
Writedowns of
development and          —              3,403           5,038           8,819
deposits
Services and
expenses paid with       —              —               —               1,990
common stock
Net cash used by
operating                (13,216  )     (20,372   )     (8,198    )     (116,162    )
activities
                                                                                    
CASH FLOWS FROM
INVESTING
ACTIVITIES:
Payments for the
purchase of              98             —               (124      )     (1,450      )
equipment
Purchase and
development of
mining properties,       (20,860  )     (10,567   )     (14,074   )     (140,134    )
land and water
rights
(Deposits)/refunds
on property, plant       (2,158   )     177             (25,058   )     (70,065     )
and equipment
Proceeds from
option to purchase       1,950          935             115             3,100
agreement
Increase in
restricted cash          (5,858   )     —               —               (6,500      )
held for
reclamation bonds
Increase in
restricted cash —        (36,000  )     —               —               (36,000     )
EMLLC
Purchase of              —              —               —               (137        )
securities
Cash provided by
sale of marketable       —              —               —               246
securities
Net cash used by
investing                (62,828  )     (9,455    )     (39,141   )     (250,940    )
activities
                                                                                    
                                                                                    

                                                            
GENERAL MOLY, INC.

(A DEVELOPMENT STAGE COMPANY)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)
                                                                              
                                                                  January 1,
                                                                  2002

                     Years Ended                                  (Inception
                                                                  of

                                                                  Exploration
                                                                  Stage)
                                                                  to
                     December       December       December
                     31,          31,          31,            December
                                                                  31,
                     2012           2011           2010
                                                                  2012
CASH FLOWS
FROM FINANCING
ACTIVITIES:
Proceeds from
issuance of          583            19,412         43,103         228,302
stock, net of
issuance costs
Cash proceeds
from                 103,807        —              —              203,807
POS-Minerals
Corp.
Increase
(decrease) in        (142     )     (198     )     80             (10         )
leased assets,
net
(Increase) in
capitalized          (582     )     (2,249   )     (887     )     (3,718      )
debt issuance
costs
Proceeds from        —              —              10,000         10,000
debt
Cash paid to
POS-Minerals
Corp. for            —              —              —              (2,994      )
purchase price
adjustment
Net cash
provided by          103,666        16,965         52,296         435,387
financing
activities:
Increase
(decrease) in
cash and cash        27,622         (12,862  )     (4,958   )     68,285
equivalents,
net
Cash and cash
equivalents,         40,709         53,571         48,614         46
beginning of
period
Cash and cash
equivalents,         $ 68,331       $ 40,709       $ 53,571          68,331
end of period
                                                                              
NON-CASH
INVESTING AND
FINANCING
ACTIVITIES:
Equity
compensation         $ 639          $ 258          $ 1,121           7,097
capitalized as
development
Accrued
portion of           5,200          —              18,450         5,200
advance
royalties
Accrued
portion of
payments to
the                  2,000          —              4,000          6,000
Agricultural
Sustainability
Trust and
Hanlong
Accrued
portion of
deposits on          1,059          1,691          657            1,059
property,
plant and
equipment
Loan
commitment           12,076         —              —              12,076
costs
Installment
purchase of          730            —              —              730
land
Restricted
cash held for
reclamation          —              —              —              491
bond acquired
in an
acquisition
Post closure
reclamation
and
remediation
costs and            —              —              —              263
accounts
payable
assumed in an
acquisition
Common stock
and warrants
issued for           —              —              —              1,586
property and
equipment
                                                                              
                                                                              

General Moly is a U.S.-based molybdenum mineral development, exploration and
mining company listed on the NYSE MKT (formerly the NYSE AMEX) and the Toronto
Stock Exchange under the symbol GMO. Our primary asset, our interest in the
Mt. HopeProject located in central Nevada, is considered one of the world's
largest and highest grade molybdenum deposits. Combined with our second
molybdenum property, the Liberty project that is also located in central
Nevada, our goal is to become the largest pure play primary molybdenum
producer in the world. For more information on the Company, please visit our
website at http://www.generalmoly.com.

Forward-Looking Statements

Statements herein that are not historical facts are “forward-looking
statements” within the meaning of Section 27A of the Securities Act, as
amended and Section 21E of the Securities Exchange Act of 1934, as amended and
are intended to be covered by the safe harbor created by such sections. Such
forward-looking statements involve a number of risks and uncertainties that
could cause actual results to differ materially from those projected,
anticipated, expected, or implied by the Company. These risks and
uncertainties include, but are not limited to, metals price and production
volatility, global economic conditions, currency fluctuations, increased
production costs and variances in ore grade or recovery rates from those
assumed in mining plans, exploration risks and results, political, operational
and project development risks, including the Company’s ability to obtain
required permits to commence production and its ability to raise required
financing, adverse governmental regulation and judicial outcomes, including
recent request for preliminary injunction and appeal of the ROD. The closing
of the Hanlong transaction and obtaining bank financing are subject to a
number of conditions precedent that may not be fulfilled. The bank financing
and subordinated loans are subject to final negotiation and satisfaction of
conditions precedent. For a detailed discussion of risks and other factors
that may impact these forward looking statements, please refer to the Risk
Factors and other discussion contained in the Company’s quarterly and annual
periodic reports on Forms 10-Q and 10-K, on file with the SEC. The Company
undertakes no obligation to update forward-looking statements.

Contact:

General Moly:
Investors - Scott Kozak, (303) 928-8591
skozak@generalmoly.com
or
Media – Zach Spencer, (775) 748-6059
zspencer@generalmoly.com
info@generalmoly.com
Website: http://www.generalmoly.com