Moly Mines Annual General Meeting Presentation

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MOLYMINESLIMITEDMOLY

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2011 Annual General MeetingPresentation

26 May 2011

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Disclaimer

This presentation includes “forward‐looking statements” as that term within the meaning of securities laws of applicablejurisdictions. Forward‐looking statements involve known and unknown risks, uncertainties and other factors that are in somecases beyond Moly Mines’ control. These forward‐looking statements include, but are not limited to, all statements other thanstatements of historical facts contained in this presentation, including, without limitation, those regarding Moly Mines’ futureexpectations. Readers can identify forward‐looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,”“continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “risk,” “should,”“will” or “would” and other similar expressions. Risks, uncertainties and other factors may cause Moly Mines’ actual results,performance, production or achievements to differ materially from those expressed or implied by the forward‐lookingstatements (and from past results, performance or achievements). These factors include the failure to complete andcommission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costscurrently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange rates betweenthe U.S. dollar and the Australian dollar; failure to recover the resource and reserve estimates of the Project; the failure of MolyMines’ suppliers and service providers to fulfil their obligations under construction, supply and tolling agreements; unforeseengeological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment,industrial disputes, labour shortages, political and other factors; the inability to obtain additional financing, if required, oncommercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue relianceon forward‐looking statements. We assume no obligation to update such information.

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MOLYMINESLIMITEDAnnual General Meeting Results

Resolution For Against Proxy Holder

Discretion

Abstain Excluded

Discretion

1 – Remuneration Report 7,550,332 917,249 536,971 228,946 ‐

2 – Re‐election of David Craig 8,322,542 286,735 571,321 52,900 ‐

3 – Re‐election of Steven Xiao 6,002,318 2,620,609 548,221 62,350 ‐

4 – Re‐election of Andy Zhmurovsky 8,260,541 340,136 547,321 85,500 ‐

5 – Approval of issue of options to Hanlong Mining Investment Pty Ltd

7,517,445 1,065,477 539,995 110,581 ‐

6 –Moly Mines limited Performance Rights Plan

Resolution withdrawnPlan

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Highlights and Achievements from November 2010

Spinifex Ridge Iron Ore Mine Construction complete within 6 months of

development decisionp Operations commence December 2010 Long term port access secured at Utah

P i t P t H dl d t S t b 2015Point, Port Hedland to September 2015 Mining operations ramp up ahead of

schedule Operating costs meet budget expectations 5 shipments completed Strong reliable cashflow at current iron Strong, reliable cashflow at current iron

ore prices Spinifex Ridge Molybdenum Project –

US$500M Finance Facility

China Development Bank approve China Development Bank approve US$500 million in financing facilities

EPC contract agreed with CACS and GRESGRES

Loan documentation advanced

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Company Overview – A producer and mine developer Spinifex Ridge Iron Ore Mine 5 shipments completed High quality DSO

Australia

High quality DSO Life of mine access secured at Utah Point

Spinifex Ridge Molybdenum Project Broome

US$500M in project finance facilities approvedby China Development Bank

Funding secured through major strategic Port HedlandKarrathaFunding secured through major strategic

shareholder

Strategic partner cornerstone growth plans

Spinifex Ridge

Marble Bar

Karratha

Vision to build a major world class mininggroup Newman

Hanlong Group US$6.5 billion credit lines Carnarvon

W E S T E R N A U S T R A L I A

200kms

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Corporate Overview

Capital Structure at 26 May 2011

ASX/TSX Ticker MOL

Market Cap A$365M

Shareholders

Hanlong Group 56.8%

Australian Register 35.3%Market Cap A$365M

Ordinary Shares 384.9M

Unlisted Options 54.1M

g

Canadian Register 7.9%

Unlisted Options

TCW (1) 4.8M

Institutions 13.8M

Hanlong (2) 35 5MHanlong (2) 35.5M

(1) TCW have advised that the the warrant holders wish to exercise 19 million warrants in MOL which will be issued after today’s AGM

(2) Hanlong options to be approved by shareholders at today’s AGM

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Spinifex Ridge Iron Ore Mine

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MOLYMINESLIMITEDMine Layout, Reserves and Resources

Waste DumpNORTH AutonAuton

Port Hedland (170kms)

DalekDalek

AutonAuton

Spinifex RidgeMolybdenum Copper

GallifreyGallifrey

Molybdenum‐CopperDeposit (500m)

ROM Pad,Crushing,Ore Stockpile

M bl B (50k )Marble Bar(50kms)

50% Fe cut50% Fe cut‐‐offoff

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Process Flowsheet

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Operations

Operations run by Moly site management contracting key services of mining, crushing, haulage and camp administration

BGC mining contractor drill, blast, load and haul 40 BGC employees primarily on a 2 and 1 roster Mining operations run day shift only, drill operations run double shiftMining operations run day shift only, drill operations run double shift 1 x Hitachi 1900 Excavator 5 x Komatsu 785 (90t) dump trucks A ill i t Ancillary equipment

Rapid Crushing and Screening 3 stage crushing plant to deliver a single Fines product of < 10 mm Day shift operation currently operating to an annual production rate of 1 million tonne per annum

Bullbuck Transport 24 hour haulageg 2,800 tonnes per day

Agreement to use Utah Point shiploader and pad 13 through to September 2015

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MOLYMINESLIMITEDOperations and Financials

Life of Mine Reserve ProductionLife of Mine Reserve Production

Ore 4.3‐4.6Mt

Strip ratio 3 3

Production: 822,000t

C t f d ti A$65/t hi d

2011 Operations ‐ Forecast2011 Operations ‐ Forecast

Strip ratio 3.3

DSO hematite Fe Grade 59.0%

FOB operating cost $65/T

Cost of production: A$65/t shipped

Total revenue, after shipping, marketing and royalties based on current spot prices (1) : A$125/t

Tonnes shipped: 203,000Strong Life of Mine Operating Performance to DateStrong Life of Mine Operating Performance to Date 4 months ended April 2011 ‐ Actual4 months ended April 2011 ‐ Actual

5 shipments dispatched from Utah Point for 326,000 tonnes Stocks on hand: 59,000 Low grade stocks on hand: 86,000 Operating cost: A$73.4/t shipped

5 shipments dispatched from Utah Point for 326,000 tonnes Strong reconciliations to geological and mine models Production outperforming budget Operating costs outperforming budget

Total revenue, after shipping, marketing and royalties:A$120.8/t

p g p g g Grade performing to budget US$ sales price performing to budget, offset by strongly

appreciating A$

(1) Based on Platts IODEX 58% and 62% Fe CFR North China May 2011

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Operations and Financials

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Explorer to Operator in 6 months

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Spinifex Ridge Molybdenum / Copper

China InformationChina Information

p g y ppProject

Transportation of mill sections, Perth Transportation of mill sections, Perth

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Molybdenum – a metal for our time Supply Consumption Supply

10 producers account for 55% of global mineoutput

Consumption

Driven by stainless steel, full alloy and toolsteels, high strength low alloy, carbon steelsd t l t Decades of industry under investment

Primary producers now the dominant contributorto global mine output

and catalysts

Anti‐corrosive properties, provides resistanceto abrasion and imparts hardness to steels to global mine output

2010 mine output has rebounded as existingmines have restored capacity from 2008/2009shut downs

Different applications can use between 0.5%to 8% Mo

Used in high pressure applications in extreme shut downs

At 5‐6% growth the market requires 10,000 tonnes(22mlb) of new production per annum to maintainequilibrium

Used in high pressure applications in extremetemperature conditions

Consumers are price insensitive and unwillingt b tit t i it i t t t t l equilibrium

Limited growth in by‐product mines, copperproduction being sourced outside of traditionalSouth American countries the world needs new

to substitute given its importance to structuralintegrity

Forecast demand for molybdenum set to grow5 6% h h 2015 South American countries ‐ the world needs new

primary molybdenum minesat 5‐6% yoy through 2015

Energy applications, pipeline development,nuclear power plants, desalination, highsulphur fuels, motor vehicles

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Molybdenum – a metal for our time PricesPrices

Limited western world demand throughGFC, however end 2008 and early 2009price levels prove unsustainable as higherprice levels prove unsustainable as highercost marginal producers in Chinawithdraw from market

F d fl t US$15 00/lb Found a floor at US$15.00/lb

Prices stable through 2010 as mine outputreacted to and matched strong Chinesedomestic economy ‐ China currently thedominant player and net importer

Market currently in balance ‐ globalinventories less than 1 months production

Under investment in moly projects will create supply tightness as global demand recovers

China export quota’s and potential rationalization of domestic production could contribute to westernp q p psupply shortfall

As new primary molybdenum mines are brought into production during this decade, the marginal costof production will reflect their cost structures including capital paybackof production will reflect their cost structures including capital payback

Supply and demand side factors could both contribute to rising price landscape this decade

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Reserves and Mineral Resources

Reserves

JORC / NI43‐101 classification Mt Mo% Cu% Ag g/t MoEq%1

Relative CompetitivenessRelative Competitiveness

Top 5 primary molybdenum resource globally byclassification

Proven reserves 199.7 0.06 0.10 1.5 0.09

Probable reserves 251.1 0.04 0.07 1.1 0.06

resource globally by contained metal

Mo Equiv. reserve grade is comparable to other

TOTAL 450.8 0.05 0.08 1.3 0.07

Resources

comparable to other western world primary molybdenum projects

Complemented by Iron OreFirst 10 yrs

0 10%45 yr mine life

JORC / NI43‐101 classification Mt Mo% Cu% Ag g/t MoEq%

M d 206 8 0 06 0 10 1 5 0 09

p y

Fully permitted ready to build

0.10%y

Measured resources 206.8 0.06 0.10 1.5 0.09

Indicated resources 445.4 0.04 0.07 1.1 0.06

TOTAL 652 2 0 04 0 08 1 2 0 07TOTAL 652.2 0.04 0.08 1.2 0.07

Inferred resources 399.0 0.04 0.07 1.1 0.06 Note—Reserves are a sub‐set of Resources0.02% Mo cut‐off assumed for resources0.03% Mo cut‐off assumed for reserves

Capacity for life 1 – Mo equivalent calculated on contained metal @ 4QCY10 average metal prices

Capacity for life extension & expansion

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US$500M Project Financing Platform

10 MT/A Resource Pit Shell

Hanlong US$200M equity and debt injection ‐ completed April 2010

Chinese engineering study completed, China Development Bank credit committee approvals July 2010

Sichuan Provisional Development and Reform Commission financing proposal acceptance August 2010

Term Sheet negotiation initiated September 201020Mtpa ResourcePit Shell0.02% Mo Shell

Term Sheet negotiation initiated• Corporate facility, 12 year loan term, US LIBOR plus margin equivalent to <5% interest rate• Negotiations with preferred Chinese and Australian engineering construction contractors• Parent company guarantees and asset pledges from Hanlong

September 2010

National Development Reform Commission approval for funding to be made available December 2010

China Development Bank issues commitment letter for up to US$250M January 2011

China Development Bank extends approval to US$500M April 2011

Commencement of full project finance facility documentation• Construction contracts the major new contractual conditions required for facility completion• Banking and legal due diligence

February 2011

0.09% Mo Shell

Award of EPC contract to CACS and GRES May 2011

Target date for completion of Facility Agreement documentation End June 2011

Expected availability of funds and decision to proceed with project 2nd half 20110.09% Mo Shell‐ High Grade Core

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Competence and Responsibility

l bdMolybdenum CopperThe information in this release that relates to drill data and geological interpretation is based on information compiled by Dr Derek Fisher, Mr Ben Cairns who are Members of the Australasian Institute of Mining and Metallurgy. The information in this release that relates to Mineral Resources is based on information compiled by Mr Clay Gordon who is a Member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Dr Fisher is employed by Trillium Investments Pty Ltd which is contracted to provide management services to Moly Mines, Mr Cairns p y y y p g yis a full‐time employee of Moly Mines and Mr Gordon is employed by Mining Assets Pty Ltd.

Each of Dr Fisher, Mr Cairns and Mr Gordon have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results Mineral Resources and Ore Reserves’ They consent to the inclusion in this release of the matters based on their

Iron OreThe information in this presentation that relates to drill data and geological interpretation is based on information compiled by Mr Ben Cairns who is a Member of the Australian Institute of Geoscientists. The information in this presentation that relates to Mineral Resources is based on information

Reporting of Exploration Results, Mineral Resources and Ore Reserves . They consent to the inclusion in this release of the matters based on their information in the form and context in which it appears.

pcompiled by Mr Clay Gordon who is a Member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Cairns is a full‐time employee of the company and Mr Gordon is employed by Mining Assets Pty Ltd.

Both Mr Cairns and Mr Gordon have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting ofto the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Both Mr Cairns and Mr Gordan are Qualified Persons within the meaning of such term under National Instrument NI43‐101 . Mr Cairns and Mr Gordon consent to the inclusion in this presentation of the matters based on their information in the form and context in which it appears.

The information contained in this presentation that relates to Mineral Reserves is based on information compiled and verified under the supervision of Mr Roger Pooley who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Pooley is a Senior Mining Consultant with SRK Consulting (Australasia) Pty Ltd, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Qualified Person for purposes of National Instrument 43‐101 and as a Competent Person as defined in the 2004 edition of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves under JORC.p g p ,

Mr Pooley consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears in this document.

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50 Kings Park Rd, West Perth, WA, 6005, AUSTRALIATelephone: +61 8 9429 3300 Fax: +61 8 9429 3399

Telephone: +1 416 371 7541

Email: [email protected]

Website: http://www.molymines.com

Stock market codes: ASX: MOL, TSX: MOL, FWB: HJ1

Moly Mines Contact Details

Moly Mines Annual General Meeting Presentation

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