Molycorp Announces Pricing of Mandatory Convertible Preferred Offering by the Company and Secondary Offering of Common Stock

Molycorp, Inc. (NYSE: MCP), the Western hemisphere's only producer of
rare earth oxides, today announced that it has priced a $180 million
offering of 5.50% mandatory convertible preferred stock by the Company.
The mandatory convertible preferred stock offering consists of 1,800,000
shares of preferred stock with a liquidation preference of $100 per
share. The Company has granted the underwriters a 30-day option to
purchase up to an additional 270,000 shares of preferred stock to cover
over-allotments, if any. The mandatory convertible preferred stock
offering is expected to close on February 16, 2011, subject to customary
closing conditions.

Unless converted earlier at the option of a holder, the mandatory
convertible preferred stock will convert automatically into a variable
number of shares of Molycorp common stock on March 1, 2014. The
mandatory convertible preferred stock will pay cumulative dividends at a
rate of 5.50% per annum on the liquidation preference of $100 per share,
if declared by the board, payable quarterly in arrears in cash or,
subject to certain limitations, in shares of common stock or in any
combination of cash and common stock.

The Company also announced that it has priced the secondary offering of
13,500,000 shares of common stock by its selling stockholders at a price
per share of $50.00. The selling stockholders have granted the
underwriters a 30-day option to purchase up to an additional 2,025,000
shares of common stock to cover over-allotments, if any. The secondary
common stock offering is expected to close on February 16, 2011, subject
to customary closing conditions.

Molycorp expects to use the net proceeds from the mandatory convertible
preferred stock offering to fund its original Phase 1 production
capacity plan as well as its Phase 2 expansion plan that is expected to
give Molycorp the ability to produce at an annual rate of up to
approximately 40,000 metric tons of rare earth oxide (REO) per year at
its Mountain Pass, California Rare Earth Facility by the end of 2013.
The Company will not receive any proceeds from the sale of common stock
in the secondary offering.

J.P. Morgan Securities LLC and Morgan Stanley & Co. Incorporated will
act as joint book-running managers for the offerings. Each of the
offerings will be made only by means of a prospectus. When available,
copies of the prospectus relating to each of the offerings may be
obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, New York 11717; or from
Morgan Stanley & Co. Incorporated, Attention: Prospectus Department, 180
Varick Street, 2nd Floor, New York, NY 10014 (1-866-718-1649, email
address: prospectus@morganstanley.com).

This press release shall not constitute a solicitation of an offer to
buy, nor shall there be any sale of these securities in any state in
which such offer, solicitation, or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
state.

About Molycorp

Colorado-based Molycorp, Inc. is the only REO producer in the Western
Hemisphere and currently produces approximately 3,000 metric tons of
commercial rare earth materials per year. Following the execution of
Molycorp's 'mine-to-magnets' strategy and the expected 2012 completion
of Phase 1 of its modernization and expansion efforts at its Mountain
Pass, California processing facility, Molycorp expects to produce at a
rate of approximately 19,050 metric tons of REO equivalent per year. The
Company expects to achieve an annual production capacity by the end of
2013 of approximately 40,000 metric tons of REO equivalent per year
after the completion of Phase 2. Molycorp intends to provide to the
market a range of rare earth products, including high-purity oxides,
metals, alloys, and permanent magnets.

__________________________

This press release contains forward-looking statements that represent
the Company's beliefs, projections and predictions about future events
or its future performance. You can identify forward-looking statements
by terminology such as 'may,' 'will,' 'would,' 'could,' 'should,'
'expect,' 'intend,' 'plan,' 'anticipate,' 'believe,' 'estimate,'
'predict,' 'potential,' 'continue' or the negative of these terms or
other similar expressions or phrases. These forward-looking statements
are necessarily subjective and involve known and unknown risks,
uncertainties and other important factors that could cause the Company's
actual results, performance or achievements or industry results to
differ materially from any future results, performance or achievement
described in or implied by such statements. Factors that may cause
actual results to differ materially from expected results described in
forward-looking statements include, but are not limited to: the
Company's ability to secure sufficient capital to implement its business
plans; the Company's ability to complete its Phase 1 modernization and
expansion efforts and Phase 2 expansion efforts and reach planned
production rates for REOs and other planned downstream products;
uncertainties associated with the Company's reserve estimates and
non-reserve deposit information; uncertainties regarding global supply
and demand for rare earth materials; the Company's ability to maintain
appropriate relations with unions and employees; the Company's ability
to successfully implement its 'mine-to-magnets' strategy; environmental
laws, regulations and permits affecting the Company's business, directly
and indirectly, including, among others, those relating to mine
reclamation and restoration, climate change, emissions to the air and
water and human exposure to hazardous substances used, released or
disposed of by the Company; uncertainties associated with unanticipated
geological conditions related to mining; and other risks discussed in
the Company's filings with the U.S. Securities and Exchange Commission,
including the Company's Quarterly Report on Form 10-Q for the period
ended September 30, 2010, which filings are available from the SEC.

Any forward-looking statement you read in this press release reflects
the Company's current views with respect to future events and is subject
to these and other risks, uncertainties and assumptions relating to the
Company's operations, operating results, growth strategy and liquidity.
You should not place undue reliance on these forward-looking statements
because such statements speak only as to the date when made. The Company
assumes no obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results could
differ materially from those anticipated in these forward-looking
statements, even if new information becomes available in the future,
except as otherwise required by applicable law.

Investor Relations:

ICR, LLC

Gary T. Dvorchak, CFA, 1
310-954-1123

Senior Vice President

Gary.Dvorchak@icrinc.com

or

Company
Contact:

Molycorp, Inc.

Jim Sims, 1 303-843-8067

Director
of Public Affairs

Jim.Sims@Molycorp.com