Molycorp Announces Successful Close of Neo Materials Acquisition

Molycorp, Inc. (NYSE:MCP) ('Molycorp? or the 'Company') announced today
that its acquisition of Canadian-based Neo Material Technologies Inc.
(TSX:NEM) ('Neo Materials? or 'Neo') has officially closed, creating a
global rare earth leader with a combination of a world-class rare earth
resource, ultra-high-purity rare earth processing capabilities, and full
'mine-to-magnetics' vertical integration.

Today's close of the acquisition follows a 99.9% vote by Neo Materials'
shareholders to approve the transaction in a May 30, 2012, Special
Meeting; final approval of the Plan of Arrangement ('Arrangement') from
Investment Canada on June 8, 2012; and a Final Order to approve the
Arrangement, also on June 8, 2012, by the Ontario Superior Court of
Justice (Commercial List).

Following the close, Neo Materials' subsidiaries will use the Molycorp
corporate logo, with the exception of Neo's Magnequench subsidiary,
which will use a Molycorp Magnequench logo. Combined, the companies span
26 locations across 11 countries, and have over 2,600 employees
worldwide.

• 
  A map showing the facility locations of Molycorp and its subsidiary
  companies can
  be seen here.
  
• 
  A summary describing the capabilities of the combined companies ?can
  be seen here.
  
• 
  A listing of the elements from which the combined companies will
  produce high-purity, custom engineered products can
  be seen here.
  

'Less than two years after becoming a publicly traded company, Molycorp
has now grown into one of the world's leading, vertically integrated,
global rare earths and rare metals companies, with what I believe to be
an unmatched combination of employees, world-class resources, and
ultra-high-purity processing and materials engineering capabilities,'
said Mark A. Smith, Molycorp′s President and Chief Executive Officer.
'Combining Molycorp's and Neo Materials' personnel provides us with one
of the most experienced teams anywhere, and one that is second-to-none
in its dedication to innovation, excellence, customer service, and our
ETHICS.' Molycorp's corporate values are known as ETHICS,
which is an acronym of Excellence, Trust, Honesty, Integrity,
Creativity and Safety.

'We now have the broadest global coverage in the industry, and we can
immediately access highly specialized niche markets that were not
available to us prior to the Neo acquisition,' Mr. Smith said. 'Our
expanded product line in rare earths, particularly in the 'heavies'
category, and rare metals, along with our patented technology platform,
and our ability to consistently meet demanding customer specifications,
will make us a formidable player in these global markets for years to
come.'

The Neo acquisition is expected to be accretive to Molycorp′s 2012
earnings and cash flow, and positions the Company to deliver strong
returns in the future. The significant synergies that have already been
identified, and others expected to be implemented, will further
strengthen Molycorp′s financial performance beyond 2012, especially as
the Company ramps up and leverages its increased production from the
Mountain Pass facility.

'I am especially pleased with the overwhelming support we received from
shareholders, regulatory bodies, and our joint global customers in this
transaction,' Mr. Smith added. 'I believe we are better positioned today
to increase the diversity of global rare earth supply, which benefits
all consumers of these materials, as well as to capture an increased
share of global rare earths and rare metals markets.'

Mr. Smith concluded: 'This acquisition is a game changer for Molycorp
and for our shareholders. Along with management and our board, I believe
the combination of our two companies will open up new and exciting
opportunities for growth in the coming years. In addition to the
employees, assets, products, and customers that are part of this
transaction, we have significantly strengthened our intellectual
property portfolio and our high-purity processing skillsets.'

Smith will continue to service as President and Chief Executive Officer
of Molycorp, as well as a Director of Molycorp. Constantine
Karayannopoulos will join Molycorp's Board of Directors as Vice Chair
and will remain active in the business. Michael F. Doolan will become
Executive Vice President and Chief Financial Officer of Molycorp. James
S. Allen will serve as Senior Vice President of Finance, and Treasurer,
of Molycorp.

About Molycorp, Inc.

Molycorp is one of the world's leading rare earths and rare metals
companies, and combines a world-class rare earth resource at Mountain
Pass, California, with world-leading ultra-high-purity rare earth and
rare metal materials processing capabilities. With 26 locations across
11 countries, Molycorp is vertically integrated across the global rare
earth mine-to-magnetics supply chain. It produces custom engineered
materials from 15 different rare earths, with purity levels of up to 6N
(99.9999%), and from six other metals (niobium, tantalum, gallium,
indium, rhenium, and zirconium) at purity levels of up to 8N
(99.999999%). Through its Molycorp Magnequench subsidiary, the Company
is a leading global producer of neodymium-iron-boron (NdFeB) magnet
powders, used to manufacture bonded NdFeB permanent rare earth magnets.
Through its joint venture with Daido Steel and Mitsubishi Corporation,
Molycorp expects to begin manufacturing next-generation, sintered NdFeB
permanent rare earth magnets in early 2013. The rare earths and rare
metals materials that Molycorp produces are critical inputs in wide
variety of existing and emerging applications, including the following:
advanced transportation technologies, such as hybrid electric, plug-in
hybrid electric, and all-electric vehicles; clean energy technologies,
such as solar and wind power systems; energy efficiency technologies,
such as high efficiency motors and appliances, compact fluorescent
lights, and color displays; computing and communications applications,
including fiber optics, lasers, and hard disk drives; defense and
aerospace applications, such as satellites, guidance and control
systems, and global positioning systems; and advanced water treatment
technologies for use in municipal wastewater, industrial wastewater,
pool & spa, and outdoor recreation applications. For more information
please visit www.molycorp.com.

Safe Harbor Statements

This release contains forward-looking statements that represent
Molycorp′s beliefs, projections and predictions about future events or
Molycorp′s future performance, including those regarding Neo Materials.
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: Molycorp′s ability to successfully integrate Neo into
Molycorp′s operations; Molycorp′s ability to achieve fully the strategic
and financial objectives related to the acquisition of Neo, including
the acquisition′s impact on Molycorp′s financial condition and results
of operations, including any expected synergies and the acquisition
being accretive to Molycorp′s earnings; Molycorp′s ability to secure
additional capital to implement its business plans; Molycorp′s ability
to complete its initial modernization and expansion efforts, including
the accelerated start-up of the Mountain Pass facility, which management
refers to as Project Phoenix Phase 1, and the second phase capacity
expansion plan, which management refer to as Project Phoenix Phase 2,
and reach full planned production rates for REOs and other planned
downstream products, in each case within the projected timeframe; the
success of Molycorp′s cost mitigation efforts in connection with Project
Phoenix, which, if unsuccessful, might cause its costs to exceed budget;
the final costs of the Project Phoenix Phase 1, including with
accelerated start-up of the Mountain Pass facility, and Project Phoenix
Phase 2, which may differ from estimated costs; uncertainties regarding
global supply and demand for rare earths materials; Molycorp′s ability
to achieve anticipated production costs and realize the cost benefits of
new technologies; Molycorp′s ability to successfully integrate recently
acquired businesses; 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; Molycorp′s
ability to maintain appropriate relations with unions and employees;
Molycorp′s ability to successfully implement its 'mine-to-magnets?
strategy; environmental laws, regulations and permits affecting
Molycorp′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 Molycorp; with unanticipated
geological conditions related to mining; the effects of adverse general
economic and business conditions; the rate of exchange of the U.S.
dollar to the Canadian dollar, the Japanese yen, the Chinese Renminbi
and the Euro; unexpected actions of domestic and foreign governments;
and various events that could disrupt operations, including natural
events.

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 and of the Company′s Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 2012. Any forward-looking statement
contained in this press release or the Annual Report on Form 10-K or the
Quarterly Report on Form 10-Q 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, +1-303-843-8062

Senior Manager, Investor Relations

Brian.Blackman@molycorp.com