Mr. Seth Foreman reports

GENERAL MOLY ANNOUNCES HANLONG'S RECEIPT OF KEY CHINESE GOVERNMENTAL APPROVAL

Sichuan Hanlong Group (Hanlong) has received formal approval from the Chinese National Development and Reform Commission (NDRC) to invest in General Moly Inc. as a component of an overall structure to fully finance General Moly's 80-per-cent-owned share of the Mt. Hope project.

Bruce D. Hansen, chief executive officer of General Moly, said: "The NDRC approval represents another key milestone reached in the overall finance and development plan for our world-class Mt. Hope molybdenum project. The NDRC approval is by far the most important Chinese approval and signifies that the transaction is in alignment with China's strategy. We anticipate the receipt of a certificate of overseas investment as approval from the Ministry of Commerce and filing of that certificate with the State Administration of Foreign Exchange (SAFE) to be forthcoming, within the next few days. We have agreed with Hanlong that formal approval from SAFE is not practical nor required at this time, as funds will not be required to be transferred until later in the year."

Once completed, and following the publication of the Mt. Hope project's draft environmental impact statement (DEIS), the company will close on the initial 12.5-per-cent fully diluted share sale to Hanlong for $40-million. General Moly continues to anticipate both publication of the DEIS and Hanlong's equity investment to occur prior to year-end. The company will resume engineering and procurement upon receipt of these moneys. The DEIS publication in the federal register will begin the public review period and signifies the final stages of federal permitting.

Under the agreement with Hanlong, Hanlong will increase its interest in General Moly to 25 per cent on a fully diluted basis, through an additional $40-million equity investment, following General Moly's receipt of its record of decision (ROD) and Hanlong's delivery of a $665-million Hanlong-guaranteed loan to be sourced from a prime Chinese bank. General Moly currently anticipates ROD receipt by mid-2011 and anticipates loan availability and initiation of construction within three months of permit receipt. General Moly has already initiated discussions with several prime Chinese banks, including the Import-Export Bank of China.

Water rights update

The Nevada State Engineer's office has set a hearing for Dec. 6 to Dec. 10 to review the company's water applications. The company now anticipates the Nevada State Engineer's office to issue its ruling approximately three months following the conclusion of the hearings.