MOLY MINES LIMITED

46-50 Kings Park Road, West Perth

Western Australia 6005

PO Box 8215, Subiaco East Western Australia 6008

Telephone +61 8 9429 3300

Facsimile +61 8 9429 3399

Email [email protected] ABN 32 103 295 521

29 December 2015

ASX Market Announcements Office ASX Limited

20 Bridge Street

Sydney NSW 2000 Australia

Iron Ore Sale Final Payment - Update

As advised to the ASX on 16 November 2015, as a consequence of an inability to agree on components of the final payment under the Iron Ore Sale and Purchase Agreement ("IOSPA") between Moly Mines Limited ("MOL" or "the Company") and Mineral Resources Limited ("MRL"), an Expert's report was received which, if correct and after all appropriate off-sets, would result in approximately A$4.2 million being payable by MOL to MRL in the December 2015 Quarter.

Having considered the Expert's report in detail, MOL considers that the Expert's determination of Available Tonnages under the IOSPA is not valid. Consequently, the Company has not paid any amount to MRL and on 23 December 2015 issued a Dispute Notice to MRL under the IOSPA.

On 24 December 2015, MOL received a generally indorsed writ of summons from MRL claiming A$4.9 million, calculated by reference to the Expert's determination of Available Tonnages.

MOL is currently reviewing the writ in the light of the Dispute Notice and provisions of the IOSPA to determine the appropriate course of action.

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For more information please contact:

Natalie Frame Investor Relations

+1 416 371 7541

Graeme Kininmonth CEO

+61 8 9429 3300

[email protected] www.molymines.com

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