Molycorp Reports Second Quarter 2011 Results

Molycorp, Inc. (NYSE: MCP) (Molycorp or the Company) today announced
financial and operating performance for the second quarter of 2011.

Molycorp′s $781 million modernization and expansion project at its
flagship Mountain Pass, Calif., Rare Earth facility continues on time
and on budget, with an annual Phase 1 production rate of 19,050 metric
tons of rare earth oxide (REO) equivalent to be achieved by the end of
2012.

The Company generated revenue of $99.6 million in Q2 2011, which
compares to revenue of $26.3 million in Q1 2011 and $1.9 million in Q2
2010. Sequential growth resulted from a combination of robust results
from its Mountain Pass facility, and the inclusion of revenue from the
Company′s recently acquired subsidiaries, Molycorp Metals and Alloys
(MMA) of Tolleson, Ariz., and Molycorp Silmet AS (Silmet), located in
Sillamae, Estonia.

Mountain Pass revenue grew 130% sequentially to $60.3 million, net of
intercompany sales. The growth in Mountain Pass revenue was driven both
by higher realized prices and by higher volumes. Market prices for rare
earth elements continued to climb during the quarter, as global supplies
remain extremely tight. Silmet contributed $29.0 million to revenue net
of intercompany sales, while MMA recognized $10.3 million of sales in
the period subsequent to the acquisition.

Net income attributable to common stockholders was $43.5 million, or
$0.52 per fully diluted share as compared to net losses attributable to
common stockholders of $(3.4 million) or $(0.04) per share in Q1 2011
and $(23.3 million) or $(0.47) per share in Q2 2010.

SALES VOLUME UP STRONGLY IN 2Q 2011

Mountain Pass sold 829 metric tons of REO equivalent products, a 19%
sequential increase and 212% year-over-year increase. Mountain Pass
realized an average sales price of $72.80 per kilogram compared to an
average sales price of $37.73 per kilogram in Q1 2011, and an average
sales price of $7.16 per kilogram for Q2 2010. Silmet′s sales in Q2 2011
included 217 metric tons of REO equivalent products at an average sales
price of $69.27 per kilogram and also included 80 metric tons of rare
metals (niobium and tantalum) at an average sales price of $167.50 per
kilogram. MMA sold alloys containing approximately 53 metric tons REO
equivalent products to contribute $10.3 million in revenue.

A majority of the Mountain Pass′ lanthanum sales are to one customer
under a contract that includes a price cap. That contract was
renegotiated effective July 1, 2011 to better reflect the increase in
market prices for lanthanum products. Excluding those sales, Mountain
Pass′ other products realized an average sales price during Q2 2011 of
$104.95 per kilogram, as compared to $65.95 per kilogram in Q1 2011.

'We are very pleased with our accomplishments this quarter, as we
successfully completed two acquisitions that advance our vertically
integrated mine-to-magnets strategy,? said Mark Smith, Molycorp
President and Chief Executive Officer. 'Additionally, we remain on time
and on budget with Project Phoenix and we expect to help alleviate the
global supply shortage even more when our new plant comes on line next
year. Global demand for rare earths remains very high, and supply
outside of China continues to be tight, as China continues to reduce its
net REO export quotas.?

Q3 AND Q4 PRODUCTION GUIDANCE

* Prior to our acquisitions in April 2011

** Actual production

CONFERENCE CALL TODAY AT 4:30 P.M. EASTERN

Molycorp will conduct a conference call today to discuss these results
at 4:30 p.m. EDT, hosted by Mark Smith, Chief Executive Officer, and Jim
Allen, Chief Financial Officer. Investors interested in participating in
the live call from the U.S. should dial +1 (888) 946-0716 and reference
confirmation number 4499878. Those calling from outside the U.S. should
dial +1 (719) 457-2713 and use the same confirmation number. A telephone
replay will be available approximately two hours after the call
concludes through Thursday, August 25, 2011 by dialing +1 (877) 870-5176
from the U.S., or +1 (858) 384-5517 from international locations, and
entering passcode: 4499878.

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 60 days.

About Molycorp

Colorado-based Molycorp, Inc. is the only rare earth oxide (REO)
producer in the Western Hemisphere and the largest REO producer outside
of China. In addition to its flagship rare earth mine and processing
facility at Mountain Pass, California, Molycorp also owns a controlling
interest in the Estonia-based Molycorp Silmet AS. One of the largest
rare earth and rare metal producers in Europe, Molycorp Silmet AS has an
annual production capacity of approximately 3,000 metric tons of rare
earth products and 700 metric tons of rare metal products. Molycorp also
owns Molycorp Metals and Alloys in Tolleson, Arizona. Formerly known as
Santoku America, Inc., the facility is one of the leading producers of
high-purity rare earth alloys and metals outside of China, and
manufactures neodymium-iron-boron (NdFeB) alloy and samarium cobalt
(SmCo) alloy, as well as other specialty alloys and products. 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 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.

Safe Harbor Statement Regarding Forward-Looking Statements

This release contains forward-looking statements that represent our
beliefs, projections and predictions about future events or our 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 our 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: our ability to secure sufficient capital to implement our
business plans; our ability to complete our Phase 1 modernization and
expansion efforts and Phase 2 capacity expansion efforts and reach full
planned production rates for REOs and other planned downstream products;
the final costs of the Phase 1 modernization and expansion plan and
Phase 2 capacity expansion, which may differ from estimated costs;
uncertainties associated with our reserve estimates and non-reserve
deposit information; uncertainties regarding global supply and demand
for rare earths materials; our ability to successfully integrate
recently acquired businesses; our ability to reach definitive agreements
for a joint venture to manufacture neodymium-iron-boron permanent rare
earth magnets and our supply and financing arrangement with Sumitomo;
our ability to maintain appropriate relations with unions and employees;
our ability to successfully implement our 'mine-to-magnets? strategy;
environmental laws, regulations and permits affecting our 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 us; and uncertainties associated with unanticipated
geological conditions related to mining; and those risks discussed and
referenced in the section entitled 'Risk Factors' described in our
Annual Report on Form 10-K for the year ended December 31, 2010 and our
Quarterly Report on Form 10-Q for the quarterly period ended March 31,
2011.

Any forward-looking statement you read in this release reflects our
current views with respect to future events and is subject to these and
other risks, uncertainties and assumptions relating to our 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. We assume 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.

This release also contains statistical data and estimates we obtained
from industry publications and reports generated by third parties.
Although we believe that the publications and reports are reliable, we
have not independently verified their data.

Company:

Brian Blackman

Sr. Manager, Investor
Relations

+1 303-843-8067

Brian.Blackman@Molycorp.com

or

Investor
Relations:

ICR, LLC

Gary T. Dvorchak, CFA

Senior
Vice President

+1 310-954-1123

Gary.Dvorchak@icrinc.com