General Moly Announces Third Quarter 2014 Results

General Moly, Inc. (the "Company" or “General Moly”) (NYSE MKT and TSX: GMO), a U.S.-based molybdenum mineral development, exploration, and mining company, announced its unaudited financial results for the third quarter ended September 30, 2014. Net loss for the three months ended September 30, 2014 was $3.2 million ($0.04 per share), compared to net income of $2.6 million ($0.03 per share) for the year ago period. The primary reason for the $2.6 million net income during the third quarter of 2013 was the non-cash accounting treatment associated with the termination of the Securities Purchase Agreement between the Company and Hanlong (USA) Mining.

Excluding restricted cash, the Company’s cash balance at September 30, 2014 was approximately $8 million compared to $22 million at December 31, 2013 and $12 million at June 30, 2014. During the third quarter, cash use of $4 million was the result of $2 million spent on Mt. Hope Project development costs (process equipment, engineering, procurement, owner’s cost, and reclamation bond premiums), $1 million in Liberty Project Pre-Feasibility Study related expenditures and $1 million in general and administrative expenses. In December 2012, the Company and POS-Minerals, as the members of Eureka Moly, LLC (“EMLLC”), agreed to hold, as restricted cash, $36 million due to the Company, of the approximately $100 million received from POS-Minerals’ December 2012 contributions. These funds will be held in a reserve account until the Company arranges full project financing for its 80% share of Mt. Hope Project construction cost, or until the EMLLC management committee agrees to release the funds.

To maintain liquidity the Company has engaged in discussions with POS-Minerals to examine the possibility of a potential utilization of the $36 million of restricted cash to fund ongoing Mt. Hope related expenditures. In addition, the Company is evaluating other reasonable funding options, incremental non-core asset sales and further cost reductions.

Bruce D. Hansen, Chief Executive Officer of General Moly, said "We are focused on Mt. Hope financing and encouraged by the advances we have made in negotiations on investment agreement terms, sponsorship requirements, and indicative loan terms associated with a $700 to $750 million debt and equity package. We continue to see strong interest from multiple private Chinese industrial companies and a large Chinese financial institution in advancing the fully permitted, construction-ready project.”

Mr. Hansen added, “As we continue to drive the Mt. Hope Project forward, we are also developing the scope to support a Full Feasibility Study for our Liberty Project. As we proceed, the Company will continue to prudently manage its liquidity position.”

MT. HOPE PROJECT WATER RIGHTS AND PERMIT APPEALS UPDATE

Two challenges of the Mt. Hope Project’s water permits and Management, Monitoring & Mitigation (“3M”) Plan were separately appealed to the Nevada Supreme Court (“Supreme Court”) and consolidated by the Supreme Court into one appeal. Briefing has been completed, and oral argument challenging the water permits and 3M Plan was heard on June 30, 2014 by the Supreme Court. A ruling is expected in late 2014.

In February 2013, two parties (“Plaintiffs”) filed a Complaint challenging issuance of the Record of Decision (“ROD”) for the Mt. Hope Project. The federal District Court in Nevada (“District Court”) approved EMLLC’s request to intervene in the matter. Following briefing by the parties the District Court denied the Plaintiffs’ motion for summary judgment, and on August 1, 2014 entered judgment against the Plaintiffs regarding all claims raised in the Complaint. As anticipated, on September 22nd the Plaintiffs filed their notice of appeal to the U.S. Court of Appeals for the Ninth Circuit. Briefing by the parties will likely commence in the first quarter of 2015.

All permits remain in effect. The Company will continue to vigorously defend the legal challenges to the ROD, and we believe the Mt. Hope Project's permits and ROD will be upheld after judicial review.

MT. HOPE PROJECT ENGINEERING AND EQUIPMENT PROCUREMENT UPDATE

Engineering is approximately 65% complete at the Mt. Hope Project. Through September 30, 2014, EMLLC has made deposits of $74.1 million on equipment orders and has paid $12.0 million into an escrow arrangement for electricity transmission services.

EMLLC has now ordered or purchased most of the long-lead milling equipment, haul trucks, mine production drills and has a letter of intent for the purchase of two electric shovels.

Approximately 70% of the planned spend on process equipment has been defined through hard bids and purchase orders and the cost for this equipment is estimated to remain on budget. Further, approximately 80% of planned spend on mining equipment has been committed with cancelable purchase orders, the cost for which is also estimated to remain on budget. Some of the mining equipment committed spend is subject to Producer Price Index-based escalation and additional holding costs if there are extended delays, and some agreements would be subject to cancellation. The Mt. Hope Project remains in a construction-ready status pending full project financing.

Additional information on the Company’s third quarter 2014 results will be available in General Moly’s 2014 Form 10-Q, which will be filed with the Securities and Exchange Commission and posted on the Company’s website.

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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. The Company’s primary asset, our interest in the Mt. Hope Project located in central Nevada, is considered one of the world's largest and highest grade molybdenum deposits. Combined with the Company’s second project, the Liberty Project, a molybdenum and copper property 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 maintain required permits to continue construction, commence production and its ability to raise required project financing, adverse governmental regulation and judicial outcomes, including appeal of the Record of Decision and appeal of water permits and estimates related to cost of production, capital, operating and exploration expenditures. 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.