Molycorp Declares Preferred Dividends

Molycorp, Inc. (NYSE: MCP), the Western hemisphere's only producer of
rare earth oxides (REO) and the largest 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 June 1, 2012 to the holders of record
of shares of Series A mandatory convertible preferred stock at the close
of business on May 15, 2012. As of May 1, 2012, 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 one of
the world's leading rare earths and rare metals companies.  ?Fully
integrated across the rare earth mine-to-magnets supply chain, it
currently produces rare earth oxides at its flagship rare earth mine and
processing facility at Mountain Pass, California, as well as rare earth
metals, rare earth alloys, and the rare metals niobium and tantalum.
Through its joint venture with Daido Steel and Mitsubishi Corporation,
Molycorp expects to begin manufacturing next-generation, sintered
neodymium-iron-boron (NdFeB) permanent rare earth magnets in 2013. ? The
rare earths and rare metals that 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 ?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