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MOLYMINESLIMITED

MOLYMOLYMINESLIMITEDLIMITED

Australian Roadshow PresentationAustralian Roadshow PresentationAustralian Roadshow PresentationAustralian Roadshow Presentation

23 26 November 200923‐26 November 2009

‘Metals For Our Time’

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Disclaimer

This presentation includes “forward‐looking statements” as that term within the meaning of securities laws of applicable

jurisdictions. Forward‐looking statements involve known and unknown risks, uncertainties and other factors that are in some

cases beyond Moly Mines’ control. These forward‐looking statements include, but are not limited to, all statements other than

statements of historical facts contained in this presentation, including, without limitation, those regarding Moly Mines’ futurep , g, , g g y

expectations. Readers can identify forward‐looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,”

“continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “risk,” “should,”

“will” or “would” and other similar expressions. Risks, uncertainties and other factors may cause Moly Mines’ actual results,

f d h d ff ll f h d l d b h f d l kperformance, production or achievements to differ materially from those expressed or implied by the forward‐looking

statements (and from past results, performance or achievements). These factors include the failure to complete and

commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs

currently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange rates betweeny p g p y pp g

the U.S. dollar and the Australian dollar; failure to recover the resource and reserve estimates of the Project; the failure of Moly

Mines’ suppliers and service providers to fulfil their obligations under construction, supply and tolling agreements; unforeseen

geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment,

i d t i l di t l b h t liti l d th f t th i bilit t bt i dditi l fi i if i dindustrial disputes, labour shortages, political and other factors; the inability to obtain additional financing, if required, on

commercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue reliance

on forward‐looking statements. We assume no obligation to update such information.

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Share Purchase Plan

Record date 4 November 2009

PricePrice

• discount to 5 day VWAPA$0.80

27.5%

Total SPP size 20 million sharesTotal SPP size 20 million shares

Limit per shareholder A$15,000

Minimum subscription A$2,000

Offer close 30 November 2009

Allotment date 4 December 2009

SPP offer booklet and application forms at www.molymines.comSPP offer booklet and application forms at www.molymines.com

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Project Overview

Spinifex Ridge Molybdenum / Copper ProjectSpinifex Ridge Molybdenum / Copper Project Spinifex Ridge Iron Ore ProjectSpinifex Ridge Iron Ore Project

Fully permitted, engineered, ready for development at 20 Mtpa.

Spinifex Ridge Molybdenum / Copper ProjectSpinifex Ridge Molybdenum / Copper Project Spinifex Ridge Iron Ore ProjectSpinifex Ridge Iron Ore Project

D.S.O. – 59% iron ore.

1 Mtpa. Engineering underway on 10 Mtpa

start‐up.

A$100M long lead equipment for 20

p

Production mid 2010.

Location on Spinifex Ridge mining leases. A$100M long‐lead equipment for 20 Mtpa mine manufactured in Germany and delivered to Australia.

Australia

Now with a major potential Strategic Investor

Australia

Moly Mines LimitedMoly Mines Limited

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Development of Spinifex Ridge

Chinese group Sichuan Hanlong to finance Spinifex Ridge development

Hanlong to invest US$140M

Obtain 51‐55% controlling equity interest

Retire all TCW debt

Receive 35 5 Project Finance Options Receive 35.5 Project Finance Options

Hanlong to provide US$60M project loan

10 year maturity, 10% coupon10 year maturity, 10% coupon

Hanlong to arrange US$500M Project Finance Loan by 30 June 2010.

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Sichuan Hanlong Group

Privately owned

Resource Interests – Zn, Mo, Cu, Coal, Au

Electricity production, infrastructure development, pharmaceutical production, food and alcoholic beverages, real estate development,

i t l t h l t i d l tenvironmental technology, tourism development and high tech industries

RMB 9.5 billion revenue 2008 (A$1.5 billion)

12,000 employees

M l Mi Li i dMoly Mines Limited An International Mining House

Major world Mo company

Moly Mines LimitedMoly Mines Limited

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Parties Working Toward Rapid Completion

Status

S b i ti A t i d 19 O t b 2009 Subscription Agreement signed 19 October 2009 Notice of shareholder meeting dispatched TCW Restructure Agreements

FIRB Moly Mines shareholder meeting 16 December 2009

Chinese regulatory authorities By 31 January 2010

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Benefits of the Transaction

An opportunity to build the Spinifex Ridge Molybdenum / Copper ProjectAn opportunity to build the Spinifex Ridge Molybdenum / Copper Projectsignificantly ahead of when capital and moly markets might support afinancing and capture the high commodity prices in the next metals cycle

Moly Mines will be the world’s leading moly development company Moly Mines will be the world s leading moly development company.

Provides shareholders certainty of funding currently unavailable in thetraditional capital markets.

De‐leverages the Moly Mines balance sheet in favor of a major equity partnerwhose interests are aligned with minority shareholders:

US$200M in equity and debt funding will fully repay existing TCW facilities and US$200M in equity and debt funding will fully repay existing TCW facilities andprovide a significant working capital.

Hanlong is a strong partner with diversified mining interests.

Hanlong is incentivized to procure the US$500M Project Finance Loan otherwise:

Options will not vest.

Significant portion (~75%) of US$60M Hanlong loan will be forgiven.

Less dilutive structure than likely from traditional capital markets.

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Capital Structure & Balance Sheet Summary

Pre Transaction Post TransactionPre Transaction Post Transaction

Shares on issue (post SPP 20M) 156.7M 156.7M

TCW Warrants (ex $0.0001) 17.9M 17.9M

Institutional Warrants (ex C$1.00) 14.0M 14.0M

Employee Options 6.1M 6.1M

Hanlong Shares 207 1MHanlong Shares ‐ 207.1M

Hanlong Project Finance Options (ex C$1.00) ‐ 35.5M

194.7M 437.3M

Pro‐forma Balance Sheet Extract US$ US$

Cash 35.7 101.7

E i t 107 5 107 5Equipment 107.5 107.5

TCW Debt (1.5‐2 year) 114.0 ‐

TCW Debt (5 year) 20.0 ‐

Hanlong Debt (10 year) ‐ 60.0

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Corporate Governance

Head office to remain in Perth.

No change to existing management in first 12 months following completion.g g g g p

Hanlong granted the right to board control.

Hanlong can appoint 1 executive director (marketing & project finance) reporting to the Managing Director.

Hanlong can appoint 2 non‐executive directors.

B d l i l 2 i d d di Board to always contain at least 2 independent directors.

Any Hanlong offtake agreements require shareholder approval (from non‐aligned).

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Experienced Team

Board of DirectorsBoard of Directors Management TeamManagement TeamBoard of DirectorsBoard of Directors Management TeamManagement Team

Mr. David Craig ‐ Chairman

An experienced businessman and lawyer, who has held and holdsExecutive and Board positions in the fields of law, financial services andthe resources industry Appointed as Chairman in 2009

Mr. Collis Thorp – Chief Operating Officer

40 years mining experience, having operated and managed open-pit andunderground mines in Australia and internationally. Experience coversprecious base and specialty metal operations including gold tin tungsten

Over 38 years of worldwide experience in the resource industry, more than 20 years experience as a manager of publicly listed resource companies, in

the resources industry. Appointed as Chairman in 2009

Dr. Derek Fisher – CEO/Managing Director

precious, base and specialty metal operations, including gold, tin, tungsten,titanium and zircon.

A mining engineer with 25 years of extensive industry experience includingopen-pit mine management, mining contractors management.

Mr. Mike Gloyne – General Manager Operations

y p g p y p ,addition to serving as a director of mining companies that developed mines in Australia, Mongolia, Armenia and the DRC.

A professional geologist with over 25 years Canadian and international

Mr. David Constable

Extensive experience, having spent 17 years in senior finance roles in both

Mr. John McEvoy – Chief Financial Officer

open pit mine management, mining contractors management.

exploration and development experience.

Over 25 years investment banking experience having held senior executive

Mr. Michael Senft Mr. Andrew Worland – Company Secretary , General Manager Commercial & Marketing

the public and private mining sector.

Over 25 years investment banking experience having held senior executiveroles with Merrill Lynch and UBS in New York and London.

Mr. David Nixon

Extensive finance, corporate and investor relations experience in the resources sector, over 13 years in senior finance and corporate roles.

Moly Mines has established a quality technical &management team experienced in all aspects of project

A mechanical engineer with 40 years experience in the mining andconstruction industries in Southern Africa, Australia, New Zealand, Canadaand Indonesia.

management team experienced in all aspects of projectfinancing, development, construction, mining & processingand operations, demonstrating low management risk in theproject.

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China InformationChina Information

Spinifex Ridge Molybdenum ProjectTransportation of mill sections, Perth Transportation of mill sections, Perth

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Reserves and Mineral Resources

hl hhl hReserves

JORC / NI43‐101 classification Mt Mo% Cu% Ag g/t

Proven reserves 199.7 0.06 0.10 1.5

Highlights – 20 Mtpa RateHighlights – 20 Mtpa Rate

23 year Reserve life

E i t ti lProven reserves 199.7 0.06 0.10 1.5

Probable reserves 251.1 0.04 0.07 1.1

TOTAL 450.8 0.05 0.08 1.3

Expansion potential

24Mlb Mo in concentrate

per annum

Resources

JORC / NI43‐101 classification Mt Mo% Cu% Ag g/t

per annum

27Mlb Cu in concentrate per

annum

Measured resources 206.8 0.06 0.10 1.5

Indicated resources 445.4 0.04 0.07 1.1

TOTAL 652.2 0.05 0.08 1.3

Inferred resources 399.0 0.04 0.07 1.1

Note Reserves are a sub set of ResourcesNote—Reserves are a sub‐set of ResourcesR/P—Reserves/Production0.02% Mo cut‐off assumed for resources0.03% Mo cut‐off assumed for reserves

Spinifex Ridge Molybdenum Spinifex Ridge Molybdenum ‐‐ Copper ProjectCopper Project

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Low-Risk / Low Cost Open Pit Mining

hl hhl h

Conventional open pit

Pit design has been optimised to maximise grades early and to fit

HighlightsHighlights

Australia

maximise grades early and to fit processing requirements

Favourable mining characteristics

Deposit is porphyry with continuous Mo Camp / Village

Port Hedland (170kms)

AirstripFe Pits

p p p y ymineralisation

Minimal grade control or dilution issue –low grade halo de‐risks mining

Minimal requirement for selective

Waste 2

Waste 1 ROM

Pl t &

Dry Stack Tailings

/ Village

Hi h G dHi h G d Minimal requirement for selective mining

Mining fleet based on conventional open‐pit mining equipment

Pit

Plant &Administration

High GradeStockpileHigh GradeStockpile

Low GradeStockpileLow GradeStockpile

Mo \ Cu Pit

Specified equipment or alternatives can be readily mobilised by contractors

Conventional comminution and flotation processing

Waste 3

Pit Office/

Creek DiversionChannel

Dry stack tailings –operational/environmental advantages

Workshops


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Phase 1 – Startup Project

Results of Scoping Study completed April 2009:

10 Mtpa

10 Mtpa Resource Pit Shell

Initial head‐grade – 0.07% Mo, 0.11% Cu (1st 10 years)

12 13 Million lbs Mo per year20Mtpa

12‐13 Million lbs Mo per year

Utilises same large scale equipment as 20 Mtpa plant.

ResourcePit Shell0.02% Mo Shell

18 month construction period from full project

funding

Capital cost ‐ A$528M (plus A$70M for power station

if not financed by 3rd party)

Operating cost US$8.30/lb (first 10 years – mine gate)0.04% Mo Shell

0.09% Mo Shell‐ High Grade Core

Source: NI43Source: NI43‐‐101 Technical Report dated 25 August 2009101 Technical Report dated 25 August 2009

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Long Lead Equipment Orders Completed


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Mine Statistics

Expansion Case Mine Plan (20 Mtpa ‐ year 7 onwards)

Year 1‐10 11‐23 LOM

Waste (Mt) 227 268 495

10 Mtpa Case Mine Plan

Year 1‐10 11‐23 LOM

W t (Mt) 180 47 227 Waste (Mt) 227 268 495

Ore Mined (Mt) 227 224 451

Waste to Ore ratio 1.0 1.2 1.1

Mill F d (M ) 128 323 451

Waste (Mt) 180 47 227

Ore Mined (Mt) 148 88 236

Waste to Ore ratio 1.2 0.5 1.0

ill d ( ) 88 8 236 Mill Feed (Mt) 128 323 451

Mill Feed Mo (% Mo) 0.06 0.04 0.05

Mill Feed Cu (% Cu) 0.1 0.08 0.08

Mill Feed (Mt) 88 148 236

Mill Feed Mo (% Mo) 0.07 0.05 0.06

Mill Feed Cu (% Cu) 0.11 0.08 0.09

Mo Recovery (%) 84 89 87

Cu Recovery (%) 64 67 66

Mo Production (Mlb) 146 282 428

Mo Recovery (%) 84 90 87

Cu Recovery (%) 64 68 66

Mo Production (Mlb) 107 143 250

Cu Production (Mlb) 182 372 554Cu Production (Mlb) 135 181 316


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Economics – High and Low Case Scenarios

10 Mtpa Case10 Mtpa Case

Price Scenario EBITDA (A$M) Pre‐tax NPV (A$M) Pre‐tax IRR (nominal converted)

US$30/lb 292 1,444 26.2%

US$20/lb 149 343 15.3%

US$25/lb (3 Year Average) 244 1,050 22.5%

i C ( 20 )Expansion Case (to 20 Mtpa)

Price Scenario EBITDA (A$M) Pre‐tax NPV (A$M) Pre‐tax IRR (nominal converted)

US$30/lb 459 2,251 28.7%US$30/lb 459 2,251 28.7%

US$20/lb 220 578 16.5%

US$25/lb (3 Year Average) 396 1,669 24.7%

Financial analysis based on 20 Mtpa DFS and 10 Mtpa Scoping Study

Moly Mines believes long term molybdenum prices required to be > US$20/lb to support new primary mine development and meet projected supply shortfall

FX rate based on forward curve rates at 13 August 2009

Project returns vary significantly with commodity price and FX assumptions


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China InformationChina Information

Spinifex Ridge Iron Ore Project

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Iron Ore Project Overview

Hematite “direct shipped ore” (DSO) – 59% Fe.

Location within Spinifex Ridge Mo mining leases.

Falls under the Mo/Cu permitting.

Commence production Q2/2010 Commence production – Q2/2010.

Close to Port Hedland – within trucking distance.

China market nearby

Spinifex Ridge Iron Ore ProjectSpinifex Ridge Iron Ore Project

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Location Map

EL E l ti Li

Granite

GPL General Purpose Lease

EL – Exploration Licence

Rockchip Sample

1.5kms Iron Ore ResourceIron Ore Resource

6.1 Mt @ 59% Fe6.1 Mt @ 59% Fe

Granite

GPL – General Purpose Lease

Basalt

Basalt59.2% Fe

60 2% Fe55.8% Fe

64.7% Fe

Iron Formation

Ultramafic

Basalt

56 1% F

55.2% Fe

60.2% Fe

Felsics

Basalt

Basalt

56.1% Fe 61.4% Fe 61.9% Fe 61.6% Fe

55.1% Fe

Basalt

Ultramafic

Molybdenum‐Copper ResourceMolybdenum‐Copper Resource

652Mt @ 0.05% Mo, 0.08% Cu652Mt @ 0.05% Mo, 0.08% Cu


GraniteBasalt ML – Mining Leases

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Resource

6.1 Mt @ 59% Fe6.1 Mt @ 59% Fe

ResourceResource

tonnes Fe% SiO2 Al2O3% P% S% LOI%

Indicated 6,110,000 58.9 8.5 1.7 0.15 0.006 4.7

Inferred 1,160,000 57.2 12.8 0.9 0.15 0.011 4.1

l d h l k d ll f

50% Fe cut‐off

Resource includes Auton, Auton North East, Dalek and Gallifrey.

162 RC and diamond drill holes for 11,011m to an average depth of 70m


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Site Layout

Waste Dump

Port Hedland (170kms)

NORTHAutonAuton

DalekDalek

G llifG llifSpinifex RidgeMolybdenum‐CopperDeposit (500m)

GallifreyGallifrey

ROM Pad,Crushing,Ore Stockpile

Marble Bar(50kms)6.1 Mt @ 59% Fe6.1 Mt @ 59% Fe

ResourceResource

( )


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Development Scenarios

Open pit, 3:1 strip ratio.

1 Mtpa production rate.DalekDalek

Capital cost ~A$9.4 Million.

Initial port access fee is estimated at A$2 4 Million Initial port access fee is estimated at A$2.4 Million.

Opex ~A$46 per tonne FOB Port Hedland. AutonAuton

Iron ore spot prices – US$100/t, CFR China (Fines) (source: Platts, Metal Bulletin November 2009)

GallifreyGallifrey


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Mine Development

O it i i Open pit mining:

3:1, three ore bodies.

Contract mining.Contract mining.

1 Mtpa production rate.

Simple processing; 2 stage crushing and screening –equipment readily available.

Lump / fines – 40/60.

Truck (115 tonne road trains) haulage to Port Hedland – 190km.

Shipping out of Utah Point at Port Hedland – access to pp gport announced September 2009.

First ore production – Q2, 2010 (1)

First ore shipment – Q3, 2010 (1)

Spinifex Ridge Iron Ore ProjectSpinifex Ridge Iron Ore Project(1) Provided Utah Point construction completed on time(1) Provided Utah Point construction completed on time

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Operating Scenarios

Mining

Numerous contractors available.

Crushing, screening

Contract operators.

Haulage

Numerous contractors in Port H dl d h li MHedland hauling Manganese, Chrome, Iron and Salt.

30km unsealed road then 160k P H dl d160km to Port Hedland.

Haulage rates applied based on third party operating quotation

tsystems.


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Operations Description

Spinifex Ridge Minesite

Haulage from pit

Stockpiles

Haulage from pit

Fines stockpile (<6.0mm)

C hi & S iCrushing & Screening at siteLump stockpile (>6.0mm – 32.0mm)

Road haulage to Port Hedland

Stockpiles at Port Ship loading & Export


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Financial Parameters

ProductionProduction FinancialFinancialProductionProduction

Ore 5.2Mt

Waste 15 6Mt

Capital Cost ~AUS$9.4M

Operating cost per tonne:

FinancialFinancial

Waste 15.6Mt

Total 20.8Mt

Strip Ratio 3.0

Operating cost per tonne:

Unit Cost ($/t)

Mining 11

Crushing 4p

Grade Fe 59%

Crushing 4

Haulage 19

Port 7

Admin/O/H 5

MarketingMarketing

Traders Capex ~A$9.4 Million pa. (excluding

/ /

A$46

Traders

Mills

p $ p ( gcontingency & port deposit)

Payback expected to be ~18 months from first positive cash flowfrom first positive cash flow .

Source: Spinifex Ridge Iron Ore PFSSource: Spinifex Ridge Iron Ore PFS

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Moly Mines Limited

Major strategic partner

The worlds leading moly development company

Strong balance sheet, cash resources

Mo \ Cu Project Mo \ Cu Project

World class, with staged development option

18 month construction period post financing18 month construction period post financing

Fe Project

Short term low cost development Short term, low cost development

Cashflow 2010

Exploration upsidep pFor

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Competence and Responsibility

The information in this release that relates to Molybdenum and

Copper Mineral Resources and Mineral Reserves is based on

information compiled and verified under the supervision of Dr Derek

Fisher who is a fellow of the Australasian Institute of Mining and

Metallurgy. The information in this release that relates to Iron Ore

Mineral Resources is based on information compiled by Mr Clay

Gordon who is a Member of The Australasian Institute of Mining and

Metallurgy and the Australian Institute of Geoscientists.

Dr Fisher is employed by Trillium Investments Pty Ltd which is

contracted to provide management services to Moly Mines, Mr

Cummins is a full‐time employee of Moly Mines and Mr Gordon isCummins is a full‐time employee of Moly Mines and Mr Gordon is

employed by Mining Assets Pty Ltd.

Each of Dr Fisher, Mr Cummins and Mr Gordon have sufficient,

experience which is relevant to the style of mineralisation and type of

deposit under consideration and to the activity which he is

undertaking to qualify as a Competent Person as defined in the 2004

Edition of the ‘Australasian Code for Reporting of Exploration Results,

Mineral Resources and Ore Reserves’. They consent to the inclusion

in this release of the matters based on their information in the form

and context in which it appears.

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50 Kings Park Rd, West Perth, WA, 6005, AUSTRALIA Telephone: +61 8 9429 3300 Fax: +61 8 9429 3399Telephone: +61 8 9429 3300 Fax: +61 8 9429 3399

Telephone: +1 416 777 1801

Fax: +1 416 777 1802Fax: +1 416 777 1802

Email: [email protected]: [email protected]

Website: http://www.molymines.com

Stock market codes: ASX: MOL, TSX: MOL, FWB: HJ1

Moly Mines Contact Details

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