Molycorp Acquires Rare Earth Metal and Alloy Manufacturer Santoku America, Inc.

Molycorp, Inc. (NYSE: MCP) today announced that its wholly owned
subsidiary Molycorp Minerals, LLC (Molycorp) has acquired Arizona-based
Santoku America, Inc. (SAI), one of the leading producers of high-purity
rare earth alloys and metals outside of China, in an all-cash deal for
$17.5 million. The transaction closed on Friday, April 15, at a ceremony
attended by senior management representatives from Molycorp, SAI, and
Japan-based Santoku Corporation, SAI′s former parent company.

The acquisition provides Molycorp with the capability to immediately
begin manufacturing and selling rare earth alloys for the production of
neodymium iron boron (NdFeB) magnets (used in electric and hybrid cars,
advanced wind energy turbines, and many high tech electronics and
applications) and samarium cobalt (SmCo) magnets (used in defense and
other applications), as well as a variety of other specialty alloys and
products. SAI 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
metal and alloy producer in North America that is not dependent on rare
earth materials sourced from China. Based in Tolleson, Arizona, the
facility has been producing specialty alloys, including rare earth
alloys, for more than 30 years. The employees there are highly
experienced and skilled in the production of rare earth and specialty
alloys.

The company will change its name from SAI to Molycorp Metals and Alloys,
Inc., to better reflect its new U.S. based ownership and its access to
one of the world′s richest rare earth ore deposits at Molycorp′s
Mountain Pass rare earth mine and processing facility. Additionally,
pursuant to the terms of the transaction, Santoku Corporation will
provide Molycorp Metals and Alloys, Inc. with technical assistance with
respect to the production of rare earth alloys on an ongoing basis and
also will act as the exclusive authorized distributor of strip cast
NdFeB alloys produced by Molycorp Metals and Alloys, Inc.

'We are very pleased with this acquisition,' said Mark A. Smith,
President and Chief Executive Officer of Molycorp, Inc. 'It further
strengthens and expands the excellent relationship Molycorp and Santoku
Corporation have enjoyed for many years. It also accelerates our plans
to deploy a fully integrated "mine-to-magnets′ manufacturing supply
chain in the U.S. In addition to working with Santoku Corporation as our
distributor of strip cast NdFeB alloys manufactured at the Arizona
plant, we also look forward to continuing our supply relationship in
support of Santoku′s ongoing alloy manufacturing operations in Japan.?

'The highly experienced SAI team will be a great addition to our rapidly
growing Molycorp family, and I am especially pleased that we will be
gaining the talents and experience of SAI President Randall Ice in this
acquisition,' added Smith.

'We at Santoku Corporation are pleased that Molycorp has acquired our
U.S. based manufacturing operations and that by selling those
operations, we have been able to help Molycorp in creating a fully
domestic 'mine-to-magnets? manufacturing chain in the U.S.,? said Yusuke
Inoue, Chairman of Santoku Corporation.

Media Availability Via Conference Call

Molycorp CEO Mark Smith will speak to members of the news media at a
media availability event at the Molycorp Metals and Alloys facility in
Tolleson, Arizona (8220 West Harrison Street) at 12:45 p.m. Pacific to
discuss this acquisition and its implications. Accredited members of the
news media are welcome to attend in person or to participate via
conference call-in. Conference call-in numbers are provided below:

About Molycorp

Colorado-based Molycorp, Inc. is the only REO producer in the Western
Hemisphere and currently produces more than 3,000 metric tons of
commercial rare earth materials per year. In addition to its rare earth
mine and processing facility at Mountain Pass, California, Molycorp also
owns a controlling interest in the Estonia-based Molycorp Silmet AS,
which has a production capacity of 3,000 metric tons of rare earth
products and 700 metric tons of rare metal products annually and is one
of the largest rare metal and rare earth metal producers in Europe.
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 from Mountain Pass. The Company expects to achieve
an annual production capacity at Mountain Pass 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. 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 Santoku America, Inc. 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, Inc.

Jim Sims, 1 303-843-8067

Director of Public
Affairs

Jim.Sims@Molycorp.com

or

Investor
Relations:

ICR, LLC

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

Senior
Vice President

Gary.Dvorchak@icrinc.com