General Moly Closes First $40 Million Equity Tranche with Hanlong

General Moly (NYSE Amex: GMO) (TSX: GMO) has closed its sale of the
first tranche of equity to Hanlong (USA) Mining Investment, Inc.
(Hanlong) for $40 million. The transaction included 11,843,341 shares of
General Moly common stock, representing a 12.5% fully diluted interest
(13.9% outstanding interest) for $40 million.

The first equity tranche is part of a larger financing commitment
originally announced March 5, 2010 whereby Hanlong has committed to
provide a total of $745 million in financing to General Moly including a
$665 million bank loan Hanlong will source and guarantee. In addition,
Hanlong is obligated to purchase a 25% fully diluted interest in the
Company for $80 million in two equal tranches, the first of which closed
today. The second $40 million equity tranche is scheduled to close once
the Company receives permits for its Mt. Hope project and when the bank
loan becomes available. The entire transaction with Hanlong is expected
to provide all remaining capital necessary to place the Mt. Hope project
into production.

General Moly has been advised by Cutfield Freeman & Co. on the Hanlong
transaction.

Hanlong Board Nomination

Pursuant to the Hanlong agreement announced March 4, 2010, Hanlong may
nominate a Director to the Company's Board of Directors at the closing
of both tranches of equity Hanlong is anticipated to purchase in General
Moly. At the closing of the first $40 million equity tranche, Hanlong
has nominated Hui (Steven) Xiao to the Company's Board of Directors,
expanding the board to ten, including seven independent Directors.

Mr. Xiao has more than 15 years of experience in finance and investment
working for several mining companies and financial organizations
including Golden Cross Resources, China United Mining Investment
Corporation, Apex Wealth Investment Management Limited, and Pan-China
Construction Group Limited. Steven currently serves as Managing Director
of Hanlong Mining Investment Pty. Ltd. Steven also serves as Executive
Director of Moly Mines, an Australian-based resources company listed on
the ASX and TSX. Steven has an MBA from the University of Texas at
Arlington and a PhD from California Southern University.

Mr. Xiao will begin his service to the Board of Directors upon his
appointment at its next regularly scheduled meeting in February, 2011.

Water Rights Hearing Update

In June 2010, the Company filed change applications with the Nevada
State Engineer's office requesting permits to withdraw water at well
locations matching those incorporated in the Company's final hydrology
models now accepted by the Bureau of Land Management (BLM) for use in
the Environmental Impact Statement. The Company had also previously
filed change applications with the State Engineer's office requesting a
change of use permit from agricultural use to mining use for the
Company's owned water rights in Kobeh Valley.

On December 6, 2010, the Nevada State Engineer began a four-day hearing
where protests to the Company's water applications were heard. The
Company believes the hearing went very well and remains confident that
the State Engineer will issue a ruling favorable to the Company. The
Company anticipates a ruling toward the end of the first quarter or
early second quarter of next year.

The Agricultural Sustainability Trust, announced in August 2010,
contained a provision that would reduce the funding of the trust by
one-half if all appellants to the Company's water rights had not dropped
their appeals and protests prior to the December 6 hearing. Given the
County of Eureka's continuation of its appeal and protest, funding of
the Trust will now range between $4 and $4.5 million, depending on the
timing of receipt of the Company's permits.

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

http://www.generalmoly.com

info@generalmoly.com