General Moly Announces Amendment to Hanlong Agreement

General Moly, Inc. (the 'Company') (NYSE Amex: GMO) (TSX: GMO) announced
amendments to the Securities Purchase Agreement (the 'Securities
Agreement') and the Bridge Loan Agreement (the 'Bridge Loan') between
the Company and Hanlong (USA) Mining Investment Inc. ('Hanlong') that
provide for greater flexibility with respect to Mt. Hope permit receipt
and Chinese bank approval timelines.

Bruce D. Hansen, Chief Executive Officer of General Moly, said, 'We
appreciate the continued support and relationship with Hanlong. Both
Companies continue to view our relationship as a long-term strategic one
and are planning for success by providing both parties with some
additional flexibility by recognizing that regulatory and government
approval timelines can take longer than projected. Due diligence and
negotiation of specific loan terms with Chinese banks are progressing
nicely.?

The amendment modifies a number of provisions contained within the
agreements originally signed in March 2010, including:

• 
  Bridge Loan Maturity. Extends the maturity of the Bridge Loan from
  March 31, 2012 to the earliest of 270 days after the effectiveness of
  the Record of Decision ('ROD?), the bank loan availability or December
  31, 2012.
  
• 
  Elimination of Draft Environmental Impact Statement ('DEIS?)
  publication deadline. DEIS deadline had been August 31, 2011.
  
• 
  ROD deadline. Extension of ROD deadline from November 30, 2011 to the
  earlier of nine months following DEIS publication or September 30,
  2012. The ROD deadline remains extendable by up to three months to
  December 31, 2012 for fees described in the Securities Agreement.
  
• 
  Bank loan availability. Extends Hanlong′s commitment to deliver the
  bank loan from two months following ROD to nine months following ROD.
  

MT. HOPE PERMIT UPDATE

On May 6, 2011, comments from Cooperating and Reviewing agencies on the
Mt. Hope project′s second Preliminary Draft Environmental Impact
Statement (PDEIS) were received by the Bureau of Land Management (BLM).
Over the past two months, the BLM and its independent Environmental
Impact Statement (EIS) contractor have been processing and responding to
each comment. Modifications to the Draft Environmental Impact Statement
(DEIS) text are being made as needed to accommodate the comments and
responses. Once the local BLM office has reviewed and finalized the
DEIS, the document will be released to the Department of the Interior in
Washington D.C. for publication in the Federal Register, which will
initiate the public comment phase of the EIS process.

Bruce D. Hansen said, 'The BLM and its independent EIS contractor are
continuing to make good progress on responding to the comments received
on the second draft of the PDEIS. We anticipate them to finalize and
release the DEIS for publication most likely in August. Once the DEIS is
published, we expect the public comment period and finalization of the
EIS to take six to nine months before project authorization will be
issued via a Record of Decision (ROD). Progress also continues in regard
to the Nevada State issued permits. (Air Quality, Water Pollution
Control, Reclamation, and Dam Safety). All of these permits are expected
prior to the issuance of the ROD.?

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 of
1933, 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 and Business Development

Seth
Foreman, 303-928-8591

sforeman@generalmoly.com

or

Media

Zach
Spencer, 775-748-6059

zspencer@generalmoly.com

or

info@generalmoly.com

http://www.generalmoly.com