General Moly Announces Creation of Agricultural Sustainability Trust in Diamond Valley

General Moly (NYSE Amex:  GMO) (TSX: GMO) announced that Eureka Moly LLC,
the Company's 80% owned subsidiary, entered into an agreement with the
Eureka Producers' Cooperative (the EPC) whereby Eureka Moly will fund a
Sustainability Trust (the Trust) in exchange for the cooperation of the
EPC with respect to Eureka Moly's water rights and permitting of the Mt.
Hope project.

Based on the agreement, the EPC will dismiss its judicial appeal and
withdraw its protests to Eureka Moly's water applications and will not
file any further protests to any change applications Eureka Moly files
prior to production from the Mt. Hope project. Additionally, the EPC has
agreed not to oppose, delay, or protest any of Eureka Moly's mining and
milling plans set forth in the Plan of Operations filed with the Bureau
of Land Management (BLM), including efforts to obtain permits for the Mt
Hope project from federal, state and local authorities and agencies. The
EPC will support Eureka Moly in its efforts to cause other Protestants
or Appellants to end their protests or appeals to any permits or
approvals required for the Mt. Hope project.

Bruce D. Hansen, Chief Executive Officer of General Moly Inc., said, 'I
am pleased that we could reach this significant milestone that creates a
Sustainability Trust for the farming community and ends the EPC's
opposition to the Mt. Hope project. This Trust will, over time,
materially reduce water consumption and help sustain the Diamond Valley
aquifer. The Mt. Hope mine will be a neighbor for over 40 years in this
community, and it is extremely important that we support the
sustainability of the agricultural business community. We want farming
in the area to survive and thrive for decades to come.'

Jim Gallagher, a spokesman for the EPC said, 'We appreciate the efforts
that Eureka Moly has put forth in communicating with the EPC and
understanding our concerns. The Sustainability Trust will benefit the
agricultural industry and the community of Eureka. We are eager to get
the Mt. Hope Mine into production.'

The Sustainability Trust will be tasked with developing and implementing
programs that will serve to enhance the sustainability and well-being of
the agricultural economy in the Diamond Valley Hydrographic Basin
through reduced water consumption, which may include the Trust
purchasing and relinquishing water rights in Diamond Valley to help
bring the Diamond Valley basin into a more sustainable water balance.
The Trust's activities will be governed by a five member Board including
one Eureka Moly representative.

Tim Arnold, General Manager of the Mt. Hope Project, said, 'This is
truly a cooperative agreement that provides benefits to the entire
Diamond Valley agricultural community, helps assure all possible impacts
of Mt. Hope's anticipated water usage are fully mitigated through the
Trust retiring active water rights or other conservation methods, and
helps us develop Mt. Hope as quickly as possible.'

The Trust will be funded by Eureka Moly and will range between $8
million and $12 million, contributed to the Trust over several years,
based on the achievement of certain milestones. The amount of the Trust
will depend on the timing of the publication of the Company's Draft
Environmental Impact Statement (DEIS) and receipt of the Record of
Decision (ROD), with higher payment amounts corresponding with faster
permit receipt. These base total amounts can be reduced by 25% or 50% if
Eureka Moly obtains its water rights and other permits, but delays are
caused by certain other protestants or other current appellants
continuing to protest or appeal the water applications or oppose the
permits for the Mt. Hope project. In all cases, at least 50% of the
contributions will be provided upon receipt of full financing and the
Company's Board of Directors' decision to proceed with construction. The
remaining payments will be split evenly with one payment due not later
than 150 days from the commencement of production at the Mt. Hope
project and the remaining payment due one year thereafter.

Eureka Moly is actively engaged in dialogue with other protestants while
continuing to progress its water applications and permitting process
before the Nevada State Engineer and other regulatory authorities.

Regardless of this agreement and anticipated progress with other
protestants and appellants, the Company continues to anticipate that the
State Engineer will require a hearing to approve Eureka Moly's water
applications. The Company anticipates that this hearing will be
scheduled later this year. The Company remains confident that it will be
granted access to water for the Mt. Hope project and that permits will
be granted prior to initiation of construction activities at the project.

Eureka Moly LLC is the owner and operator of the Mt. Hope molybdenum
project in Eureka, Nevada. Eureka Moly is 80% owned by General Moly and
20% owned by POSCO, a large Korean steel producer. General Moly is a
U.S.-based molybdenum mineral development, exploration and mining
company listed on the NYSE Amex (formerly the American Stock Exchange)
and the Toronto Stock Exchange under the symbol GMO. Our 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 our second molybdenum property, the Liberty
project that is also located in central Nevada, our goal is to become
the largest primary molybdenum producer by the middle of the decade. 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. The closing of the Hanlong transaction
and obtaining bank financing are subject to a number of conditions
precedent that may not be fulfilled. 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.

General Moly:

Investors ? Seth Foreman

(303) 928-8591

sforeman@generalmoly.com

or

Business
Development ? Greg McClain

(303) 928-8601

gmcclain@generalmoly.com

Website:
http://www.generalmoly.com

info@generalmoly.com