Mr. Bruce Hansen reports

EUREKA MOLY LOOKS FORWARD TO UPCOMING WATER RIGHTS APPEAL HEARING AFTER EUREKA COUNTY REJECTS GOOD NEIGHBOR OFFER

General Moly Inc. today, through its 80-per-cent-controlled subsidiary Eureka Moly LLC, learned that the $12-million global settlement offer presented on March 6, 2012, to Eureka county and other stakeholders was rejected by Eureka county, without counteroffer. The good neighbour offer was made to principally resolve the outstanding water rights appeal and was composed of $3-million to be paid to the appellants immediately upon signing of an agreement and dismissal of all appeals before the Nevada District Court and $5-million contributed over time to the Diamond Valley sustainability trust. The funds were to have augmented the existing $4-million Diamond Valley sustainability trust announced in August, 2010, and bring the total commitment to $12-million.

At a Tuesday, March 20, meeting, the Eureka county commissioners rejected the good neighbour offer after minimal public discussion and debate, according to Eureka Moly. Additionally, the county had failed to identify to the public that the commissioners would take action on the good neighbour offer in its published public agenda. The good neighbour offer was made by Eureka Moly as a final good faith attempt prior to the coming hearing to settle the water dispute with Eureka county and other appellants concerning the Nevada state engineer's ruling granting the water applications to be used for the Mt. Hope mine project. The good neighbour offer required acceptance by all the stakeholders, and Eureka county's rejection of the global good neighbour offer effectively prevents the other stakeholders from accepting the offer and ending the litigation. Eureka Moly now looks forward to the April 3 hearing and subsequent ruling of the Nevada District Court.

Bruce Hansen, chief executive officer, stated: "We reached out and made this offer to Eureka county and its residents as a good neighbour, with the goal of working together, to enhance the sustainability and properly manage water resources in both the Kobeh Valley and Diamond Valley water basins. Unfortunately, we are disappointed with the Eureka county commissioners' decision to continue down the path of unnecessary spending on legal action which further deprives the community of an opportunity to positively impact a decades-old severe overpumping situation in the Diamond Valley water basin, which has no relationship to the Mt. Hope project. We are moving forward aggressively. As we have stated when the good neighbour offer was presented on March 6, we remain extremely confident the state engineer's ruling will be upheld. At the same time we will always discuss reasonable and rational concepts to resolve this situation."

We seek Safe Harbor.