Molycorp's Rare Earth Reserves at Mountain Pass Increase by 36%

Molycorp, Inc. (NYSE:MCP) today announced that its proven and probable
reserves of rare earth minerals at its Mountain Pass, California
facility have increased by 36 percent, according to a new independent
estimate.

The updated estimate, based on the SEC's rigorous 'Industry Guide 7'
definition of proven and probable mineral reserves, expands Molycorp's
reserves to 18.4 million short tons of rare earth ore, at an ore grade
of 7.98% and a cut-off grade of 5%. This compares to a previous 2010
estimate of Molycorp's proven and probable reserves of 13.6 million
short tons. Both independent analyses were done by SRK Consulting of
Lakewood, Colorado, an industry mining consulting firm that specializes
in such estimates.

SRK now estimates that the proven and probable component of Molycorp's
ore body contains approximately 2.94 billion pounds (1.3 million metric
tons) of contained rare earth oxide (REO) equivalent. This compares to
the previous estimate of 2.24 billion pounds of contained REO product
(1.02 million metric tons).

'The SEC's Industry Guide 7 standard of measuring proven and probable
reserves is the most rigorous standard in the industry, and the Mountain
Pass ore body is one of the only rare earth deposits in the world that
is measured by such a high standard,' said Mark A. Smith, Molycorp's
President and Chief Executive Officer. ?'I am pleased to see
our ?world-class deposit continue to grow in size, and ?I believe that our
ongoing exploratory drilling at Mountain Pass may show an even larger
estimate of proven and probable reserves once that work is completed.'

Smith added: 'It is noteworthy that the cut-off grade of 5% used by SRK
far exceeds the head-grades of most other known rare earth projects
around the world, which underscores the unique richness of our ore body.'

The updated estimate of Molycorp's reserves by SRK was based on an
analysis of an updated ?mine plan that calculated material volumes,
tonnes, in-situ grades, and concentrate tonnes. The SRK analysis took
into account data from exploratory drilling conducted in 2010.

The SEC Guide 7 standard of measurement used by SRK measures proven and
probable reserves. This standard differs from the NI-43-101 standard,
used by virtually all other rare earth companies, in that the NI-43-101
standard measures a potential ore body in terms of 'measured, indicated
and inferred resources.' Under SEC Guide 7, 'inferred' material is
treated as waste and is not included in the measurement of reserves,
while NI-43-101 standard allows for the inclusion of inferred material
as part of a potential resource. Inferred resources is typically a much
larger number in these estimates than measured and indicated resources.

About Molycorp, Inc.

With offices in the U.S., Europe, and Japan, Molycorp, Inc. is the only
U.S.-based company that is fully integrated across the rare earth
mine-to-magnets supply chain. In addition to its current production of
rare earth oxides at its flagship rare earth mine and processing
facility at Mountain Pass, California, the Company produces rare earth
metals, rare earth alloys (such as neodymium-iron-boron and
samarium-cobalt alloys) and rare metals such as niobium and tantalum.
The rare earths and rare metals Molycorp produces are critical inputs in
existing and emerging applications including: clean energy technologies,
such as hybrid and electric vehicles and wind power turbines; multiple
high-tech uses, including fiber optics, lasers and hard disk drives;
numerous defense applications, such as guidance and control systems and
global positioning systems; advanced water treatment technology for use
in industrial, military and outdoor recreation applications; and other
technologies. For more information please visit http://www.molycorp.com.

Molycorp's Safe Harbor Statement

This release contains forward-looking statements that represent
Molycorp′s beliefs, projections and predictions about future events or
Molycorp′s future performance. In particular, statements in this release
regarding our proven and probable reserves are forward-looking
statements. Forward-looking statements can be identified 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 Molycorp′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: uncertainties associated with Molycorp′s reserve estimates
and non-reserve deposit information, including estimated mine life and
annual production; uncertainties related to feasibility studies that
provide estimates of expected or anticipated costs, expenditures and
economic returns; and REO prices, production costs and other expenses
for operations, which are subject to fluctuation.

For more information regarding these and other risks and uncertainties
that Molycorp may face, see the section entitled 'Risk Factors? of the
Company′s Annual Report on Form 10-K for the year ended December 31,
2011. Any forward-looking statement contained in this press release or
the Annual Report on Form 10-K reflects Molycorp′s current views with
respect to future events and is subject to these and other risks,
uncertainties and assumptions relating to Molycorp′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. Molycorp 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, +1 303-843-8062

Vice President,
Corporate Communications

Jim.Sims@Molycorp.com

or

Brian
Blackman, +1 303-843-8067

Senior Manager, Investor Relations

Brian.Blackman@Molycorp.com