Molycorp Announces Proposed Offering of $650 Million of Senior Secured Notes

Molycorp, Inc. (NYSE:MCP) ('Molycorp? or the 'Company?) today announced
that it intends to offer to sell, subject to market and other
conditions, $650 million aggregate principal amount of senior secured
notes in an offering exempt from the registration requirements of the
Securities Act of 1933. The notes will be senior secured obligations of
Molycorp and will be guaranteed by certain of Molycorp′s subsidiaries.
The gross proceeds from the offering of the senior secured notes will be
placed into escrow pending the consummation of the proposed acquisition
by the Company of Neo Material Technologies Inc. ('Neo?). Following
release of the gross proceeds from escrow, the Company intends to use a
substantial portion of the net proceeds from the offering to fund a
portion of the Company′s proposed acquisition of Neo, including related
fees and expenses, and any remaining net proceeds would be used for
general corporate purposes.

The senior secured notes and related note guarantees to be offered will
not be and have not been registered under the Securities Act of 1933 and
may not be offered or sold in the United States absent registration or
an applicable exemption from registration requirements. This press
release shall not constitute an offer to sell or a solicitation of an
offer to buy such notes or note guarantees and is issued in accordance
Rule 135c under the Securities Act of 1933.

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 ?

This news release includes 'forward-looking statements? within the
meaning of the securities laws. The statements in this news release
regarding Molycorp's current expectations and beliefs as to the
consummation of the offering of the senior secured notes and related
note guarantees and uses of proceeds thereof, as well as other
statements that are not historical facts, are forward-looking
statements. Forward-looking statements are estimates and projections
reflecting management's judgment based on currently available
information and involve a number of risks and uncertainties that could
cause actual results to differ materially from those suggested by the
forward-looking statements. All information set forth in this release is
as of May 14, 2012. Molycorp does not intend, and undertakes no duty, to
update this information to reflect future events or circumstances. Risk
factors and uncertainties that may cause actual results to differ
materially from expected results include, among others, our ability to
successfully complete the proposed offering and our ability to
successfully complete the acquisition of Neo. Information about certain
other potential factors that could affect our business and financial
results and cause actual results to differ materially from those
expressed or implied in any forward-looking statements are included from
time to time in our filings with the Securities and Exchange Commission,
including Part I, Item 1A 'Risk Factors? of our Annual Report on Form
10-K for the year ended December 31, 2011.