Molycorp Acquires Controlling Stake in AS Silmet, Expands Operations to Europe, Doubles Near-Term Rare Earth Oxide Production Capacity

Molycorp, Inc. (NYSE: MCP) today announced that its wholly owned
subsidiary Molycorp Minerals, LLC (Molycorp) has completed the
acquisition of a 90.023% controlling stake in AS Silmet, one of only two
rare earth processing facilities in Europe, in a transaction valued at
approximately $89 million. Molycorp acquired 80% of the outstanding
shares of AS Silmet from AS Silmet Grupp, which will retain a 9.977%
ownership interest going forward. Molycorp acquired the other 10.023%
from Treibacher Industrie AG.

The acquisition provides Molycorp with its first European base of
operations as well as doubles the company′s current rare earth
production capacity from approximately 3,000 tonnes per year of rare
earth oxide (REO) equivalent to 6,000 tonnes. AS Silmet will immediately
begin sourcing rare earth feed stocks for production of its products
from Molycorp′s Mountain Pass, California rare earth mine and processing
facility, making it the first rare earth oxide and metal producer in
Europe that is not dependent on rare earth materials sourced from China.
As part of the transaction, the company also will change its name to AS
Molycorp Silmet.

The facility′s main focus will be on the production of rare earth oxides
and metals -- including didymium metal, a critical component in the
manufacture of neodymium-iron-boron permanent rare earth magnets -- from
feed stocks supplied by Molycorp′s Mountain Pass, California rare earth
mine and processing facility. However, the transaction also expands
Molycorp′s manufacturing capabilities beyond rare earths into the
production of the rare metals niobium and tantalum, which between them
have a wide variety of uses in electronics, materials manufacture,
optics, health care, chemical process equipment, power generation
systems, aerospace, superconductive materials, and others. AS Silmet is
one of the world′s leading producers of pure niobium and tantalum metal.

AS Silmet′s manufacturing operation, which employs approximately 550
workers, is located in Sillamäe, Estonia. The company currently sells
products to customers in Europe, North and South America, Asia, Russia,
and other previous Soviet Union countries.

'This acquisition provides Molycorp with a European base of operations
as well as a larger global customer base, greater rare earth production
capacity, and an expanded product line that extends our interests into
other strategic metals and technologies,? said Mark A. Smith, President
and CEO of Molycorp, Inc. 'We have already begun shipping feed stocks
from Mountain Pass to be processed into finished products at AS Molycorp
Silmet. In the short-term, this will greatly increase our ability to
supply our products into the increasingly tight global rare earth market
and provide a convenient base from which to supply European customers.
In the mid- and long-term, AS Molycorp Silmet will help us expand our
manufacturing capabilities to a broader range of strategic materials.'

'We are very excited to be adding the 550 very talented employees of AS
Silmet to the Molycorp family,' Smith added, 'and especially to gain the
talents, skills, and experience of David O'Brock, AS Silmet's Managing
Director. David has delivered great value to the company and will be an
important asset going forward to AS Molycorp Silmet and to our overall
growth strategies.'

Mr. Tiit Vähi, former Estonian Prime Minister and Chairman of the Board
of AS Silmet Grupp, said: 'We are very pleased that Molycorp has
acquired a majority position in AS Silmet and look forward to the value
that Molycorp will bring to the company by providing a steady and secure
supply of rare earth feed stocks to the business. This is a strategic
advantage that only Molycorp can bring.'

CONFERENCE CALL WITH MOLYCORP PRESIDENT AND CEO MARK SMITH AT 9 A.M.
EASTERN

Molycorp will host a conference call featuring President and Chief
Executive Officer Mark Smith today at 9 a.m. Eastern to discuss this
acquisition. Investors and others interested in participating in the
live call from within the USA should dial +1 (888) 542-0999 and
reference confirmation number 7229211. Those calling from outside the
USA should dial +1 (719) 325-2299 and use the same confirmation number.
A telephone replay will be available beginning at approximately 12:00
noon Eastern today through Sunday, April 24, 2011, by dialing +1 (877)
870-5176 from the U.S., or +1 (858) 384-5517 from international
locations, and entering passcode: 7229211. There will also be a
simultaneous live audio webcast available on the Investor Relations
section of the Company's website at www.molycorp.com.
The webcast will be archived on the website for 365 days.

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.

About AS Silmet

Estonia-based AS Silmet is one of the biggest rare metal and rare earth
metal producers in Europe. Manufacturing at AS Silmet includes three
factories that conduct rare earth metals separation; rare metals
production; and metallurgical operations. AS Silmet produces up to 3,000
tonnes rare earth products and 700 tonnes of rare metal products
annually. The company currently sells products to customers in Europe,
North and South America, Asia, Russia, and other previous Soviet Union
countries.

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 effectively assimilate AS Silmet into its overall
operations; 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 December 31, 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.

Molycorp

Jim Sims, +1-303-843-8067

Director of Public
Affairs, Molycorp Inc.

Jim.Sims@Molycorp.com

or

Investor
Relations:

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

Senior
Vice President

Gary.Dvorchak@icrinc.com