Molycorp Declares Preferred Dividends

Molycorp, Inc. (NYSE: MCP), the largest rare earth oxides (REO) producer
outside of China, today announced that its Board of Directors has
elected to declare a cash dividend on outstanding shares of its 5.50%
Series A mandatory convertible preferred stock in an amount equal to
$1.375 per share. Molycorp will pay the dividend on December 1, 2011 to
the holders of record of shares of Series A mandatory convertible
preferred stock at the close of business on November 15, 2011. As of
Nov. 8, 2011, there were a total of 2,070,000 shares of Series A
mandatory convertible preferred stock outstanding.

About Molycorp, Inc.

With offices in the U.S., Europe, and Japan, Molycorp, Inc. is the
largest rare earth oxide (REO) producer outside of China. In addition to
its current production of REO at its flagship rare earth mine and
processing facility at Mountain Pass, California, the Company produces
rare earth metals, rare earth alloys (such as neodymium-iron-boron and
samarium-cobalt alloys) and rare metals such as niobium and tantalum.
The rare earths and rare metals Molycorp produces are critical inputs in
existing and emerging applications including: clean energy technologies,
such as hybrid and electric vehicles and wind power turbines; multiple
high-tech uses, including fiber optics, lasers and hard disk drives;
numerous defense applications, such as guidance and control systems and
global positioning systems; advanced water treatment technology for use
in industrial, military and outdoor recreation applications; and other
technologies. For more information please visit http://www.molycorp.com

Molycorp, Inc.

Jim Sims, +1 303-843-8062

Vice
President Corporate Communications

Jim.Sims@Molycorp.com

or

Brian
Blackman, +1 303-843-8067

Senior Manager, Investor Relations

Brian.Blackman@Molycorp.com