General Moly has added a news release to its Investor Relations website.

Company Implements Management Restructuring and Further Cost Reduction Programs Designed to Preserve Liquidity While Advancing the Mt. Hope Project

LAKEWOOD, Colo.--(BUSINESS WIRE)--Nov. 4, 2015-- General Moly, Inc. (the "Company" or "General Moly") (NYSE MKT and TSX: GMO), a U.S.-based molybdenum mineral development, exploration, and mining company, announced its unaudited financial results for the third quarter ended September 30, 2015. Net loss for the three months ended September 30, 2015 was $2.7 million ($0.03 per share), compared to net loss of $3.2 million ($0.04 per share) for the year ago period.

Excluding restricted cash, the Company's cash balance at September 30, 2015 was approximately $15 million compared to $13 million at December 31, 2014 and $18 million at June 30, 2015. During the third quarter, cash use of $3 million was the result of $1 million spent on Mt. Hope Project development costs and $2 million in general and administrative expenses. In January 2015, the Company and POS-Minerals, as the members of Eureka Moly, LLC ("EMLLC"), announced an agreement that provided access to the $36 million reserve account for Mt. Hope dedicated spend. The EMLLC members agreed in January that the budget will be entirely funded by the reserve account, until at least through 2020. Thus, the reserve account should cover anticipated operating expenses, and committed equipment purchase obligations while the Company seeks full financing for the Mt. Hope Project construction. The Company also announces a further 30% reduction of ongoing future expenses outside of EMLLC.

On November 3, 2015, General Moly announced an amendment to the previously announced Investment and Securities Purchase Agreement ("Investment Agreement") with AMER International Group ("AMER"), a private, Chinese-based multinational company that is one of the world's largest advanced materials, fine machining, and downstream metals refining providers, and was ranked #247 on the 2015 Fortune Global 500 list. With the amended Investment Agreement, the parties agreed upon a three tranche investment strategy that will create a strategic partnership and equity investment to assist with General Moly's ability to secure full project financing for the Mt. Hope Project.

Bruce D. Hansen, Chief Executive Officer, said, "The closing of this partnership with AMER, one of the world's largest advanced materials, downstream metals refining, and fabrication companies, is an important milestone for the Company and a critical component of our future success."

Mr. Hansen added, "As market conditions improve, this agreement will greatly strengthen our potential to access global financial institutions, particularly Chinese banks, to finance a significant portion of the remaining capital necessary for the development of the Mt. Hope Project. However, given the current molybdenum price and the recent Nevada Supreme Court water rights decision, we believe it does not make sense to aggressively pursue project financing at this time. In the near-term, we expect to evaluate acquisition opportunities that we can collectively pursue with our partner AMER. In time, we believe molybdenum prices will return to the low-to-mid teens, a level sufficient for Mt. Hope construction and development."

Mr. Hansen concluded, "As we look forward, the Company has taken decisive actions that will better position it to advance when market conditions improve. Our recently implemented management restructuring and cost reduction programs are focused on maintaining liquidity and sustainability through cost reductions in engineering, administrative and consulting expenses and trimming our ongoing Corporate and Liberty Project care and maintenance expenditures from approximately $2.5 million per quarter to approximately $1.7 million per quarter."

MT. HOPE PROJECT WATER RIGHTS AND PERMIT UPDATE

On September 18, 2015, the Nevada Supreme Court issued an Order that reversed and remanded the Nevada State District Court's Orders regarding the Monitoring, Mitigation and Management Plan ("3M Plan") and the water permits, which had affirmed the State Engineer's Orders approving the water rights and 3M Plan for the Mt. Hope Project. On October 29, 2015 the Supreme Court issued the Order as a published Opinion. The Opinion requires that the State Engineer identify specific mitigation measures to avoid conflicts with existing rights when granting water permits. As a condition of the water permits, the Company was also required to develop, in cooperation with the County of Eureka, NV, a separate 3M Plan. The Company prepared the 3M Plan, which was approved by the State Engineer and while the appeals were pending the 3M Plan had been implemented to collect information on background conditions and aquifer response to project pumping, as well as to address mitigation measures for impacted third-party water rights.

The Company is evaluating the Opinion to fully understand the process and timing associated with addressing issues raised by the Supreme Court, and will move forward as expeditiously as possible, following the remand to the State Engineer. The Company expects to comply with the Nevada Supreme Court Opinion and provide additional evidence of its ability to mitigate any potential impacts to water rights in Kobeh Valley that could result from the Mt. Hope Project's water use.

In February 2013, two parties ("Plaintiffs") filed a Complaint challenging the issuance by the U.S. Bureau of Land Management of the ROD for the Mt. Hope Project. The U.S. District Court in Nevada ("District Court") approved EMLLC's request to intervene in the matter. Following briefing by the parties the District Court denied the Plaintiffs' motion for summary judgment, and on August 1, 2014 entered judgment against the Plaintiffs regarding all claims raised in the Complaint. As anticipated, on September 22, 2014, the Plaintiffs filed their notice of appeal to the U.S. Court of Appeals for the Ninth Circuit. Plaintiffs submitted their Opening Brief on January 23, 2015 and the Defendants and EMLLC's filed their Response Brief on March 27, 2015. Plaintiffs filed their Reply Brief on May 1, 2015 and all briefing has been concluded. While the appeal is pending, the ROD remains in effect.

MANAGEMENT RESTRUCTURING AND FURTHER COST REDUCTION PROGRAMS

In October 2015, the Company implemented management restructuring and further cost reduction programs that are expected to lower operating expenses by more than 30% annually, once fully implemented in early 2016. The management restructuring and cost reduction actions are focused on maintaining liquidity and sustainability through cost reductions in engineering, administrative and consulting expenses and trimming ongoing Corporate and Liberty Project care and maintenance expenditures from approximately $2.5 million per quarter to approximately $1.7 million per quarter.

Specific provisions of the management restructuring and cost reduction programs include:

• A 25% reduction in workforce and the closing of the Company's engineering office in Tucson, AZ and local office in Eureka, NV.
• A 15 to 25% reduction in base cash compensation for senior executives.
• The retirement of David Chaput as Chief Financial Officer and promotion of Lee Shumway, formerly the Company's Controller and Treasurer, to Chief Financial Officer. Further executive level changes include Scott Roswell, formerly General Moly's Corporate Counsel and Vice President of Human Resources, assuming the title of Chief Legal Officer.
• Prudent focus on reducing all other expenditures including engineering, administrative, and consulting expenses.
• Ensuring the sustainability of Eureka Moly LLC funding through the year 2020, via the reserve account held at EMLLC.

Lee Shumway joined General Moly in 2007, and previously served as the Company's Controller and Treasurer. Prior to joining the organization, he spent 10 years in various roles at Newmont Mining including Director of Supply Chain - Nevada Operations, and Controller - Nevada Operations, and before that had 10 years of experience with Santa Fe Pacific Gold and Price Waterhouse.

MT. HOPE PROJECT ENGINEERING AND EQUIPMENT PROCUREMENT UPDATE

Engineering remains approximately 65% complete at the Mt. Hope Project. Through September 30, 2015, EMLLC has made deposits of $85.6 million on equipment orders compared to $74.2 million at the end of 2014.

EMLLC has now ordered or purchased most of the long-lead milling equipment, haul trucks and mine production drills, and has a letter of intent for the purchase of two electric shovels.

EMLLC continues to work with long-lead vendors to manage the timing of contractual payments for milling and electrical equipment. Final payments against milling and electrical equipment orders totaling $2.0 million are expected to be made by early 2017.

Approximately 70% of the planned spend on process equipment has been defined through hard bids and purchase orders and the cost for this equipment is estimated to remain on budget. Further, approximately 80% of planned spend on mining equipment has been committed with cancelable purchase orders, the cost for which is also estimated to remain on budget. Some of the mining equipment committed spend is subject to Producer Price Index-based escalation and additional holding costs if there are extended delays, and some agreements would be subject to cancellation.

Additional information on the Company's third quarter 2015 results will be available in General Moly's 2015 Form 10-Q, which will be filed with the Securities and Exchange Commission and posted on the Company's website.

General Moly is a U.S.-based molybdenum mineral development, exploration and mining company listed on the NYSE MKT (formerly the NYSE AMEX) and the Toronto Stock Exchange under the symbol GMO. The Company's primary asset, our interest in the Mt. Hope Project located in central Nevada, is considered one of the world's largest and highest grade molybdenum deposits. Combined with the Company's second project, the Liberty Project, a molybdenum and copper property also located in central Nevada, our goal is to become the largest pure play primary molybdenum producer in the world. For more information on the Company, please visit our website at http://www.generalmoly.com.

Forward-Looking Statements

Statements herein that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and are intended to be covered by the safe harbor created by such sections. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected, or implied by the Company. These risks and uncertainties include, but are not limited to, metals price and production volatility, global economic conditions, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, exploration risks and results, political, operational and project development risks, including the Company's ability to obtain and maintain required permits to continue construction, commence production and its ability to raise required project financing, adverse governmental regulation and judicial outcomes, including the appeal of the Record of Decision and potential future appeals of re-issued water permits and estimates related to cost of production, capital, operating and exploration expenditures. For a detailed discussion of risks and other factors that may impact these forward looking statements, please refer to the Risk Factors and other discussion contained in the Company's quarterly and annual periodic reports on Forms 10-Q and 10-K, on file with the SEC. The Company undertakes no obligation to update forward-looking statements.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151104006883/en/

Source: General Moly

General Moly
Investors
Scott Kozak, 303-928-8591
skozak@generalmoly.com
or
Media
Zach Spencer, 775-397-1199
zspencer@generalmoly.com
Website: http://www.generalmoly.com