General Moly Reports Fourth Quarter and 2017 Results

LAKEWOOD, Colo., March 13, 2018

Fourth quarter and year-to-date highlights:

• The Company announced the closure of the Tranche 2, $6.0 million private placement with AMER International Group ("AMER")in October 2017;
• The Company's 80% owned joint venture company, which owns and operates the Mt. Hope Project, Eureka Moly, LLC ("EMLLC"); ended 2017 with a balance of $9.9 million (100% basis) in a restricted cash reserve account, and remains self-funded through 2021 based on estimated care and maintenance expenses; 
• The Company reported the identification of a potential high-grade Cu-Ag Target along with a significant zinc mineralized area at the Mt. Hope Project site in a news release on March 1, 2018;
• The molybdenum price rose to $13.00/lb in early March 2018, the highest level since 2014.

The Company reported a net loss for the three months ending December 31, 2017 of $2.0 million ($0.01 per share), compared to a net loss of $1.9 million ($0.01 per share) for the same prior year period.  Net loss for the full year ending December 31, 2017 was $8.0 million ($0.07 per share), compared to a loss of $8.1 million ($0.07 per share) for the same prior year period. 

During the fourth quarter, cash use of $3.3 million was the result of $1.7 million at the Mt. Hope Project related to EMLLC owners' costs, funded by the restricted cash reserve account, and $1.6 million in the Company's general and administrative expenses, inclusive of costs incurred at the Liberty Project, funded by unrestricted cash.  The Company anticipates its quarterly unrestricted cash burn rate to average approximately $1.3 million per quarter for the full year 2018, excluding any drill program exploring for copper, silver and zinc at the Mt. Hope Project.

The Company continues to evaluate joint business development opportunities in base metal and ferroalloys with AMER, with $0.8 million disbursed from the expense reimbursement account in pursuit of such endeavor during 2018. This account within restricted cash is designed to cover costs related to Mt. Hope Project financing and other jointly sourced business development opportunities and was funded by a portion of the AMER Tranche 1 and 2 private placements made in 2015 and 2017.

Bruce D. Hansen, Chief Executive Officer, said, "We are pleased that the moly price improved during 2017, rising 52% at year-end 2017 from 2016, according to Platt's global moly oxide prices. Moly was the second best performing metal in 2017 amongst BMO Capital Market's universe of metals and mining commodities and we believe the moly price recovery has future appreciation potential. Against this rapidly improving molybdenum market, we are making progress with our new water permit applications and Supplemental Environmental Impact Statement and believe receipt of a new Record of Decision and water permits could be obtained early next year.

"In the meantime, we are also excited about the exploration potential for copper, silver and zinc in a skarn area at the Mt. Hope Project that was identified from our internal analysis of decades of historical drilling and supported by the high-chargeability zones indicated by a recent high-intensity, ground-based Induced Polarization ("IP") survey. We plan to review the historic logs and core to update the geologic identification of the area in conjunction with further evaluation of the IP results for geologic and lithological interpretation to define a new drilling program. The scope of exploration for 2018 will be contingent on continued positive results and will likely require financing."