Moly Mines boosts Spinifex Ridge resource (March 31, 2008)

Vancouver – On strong outlook for molybdenum prices Moly Mines (MOL-T, MOL-A) has tabled a significant resource increase for its Spinifex Ridge molybdenum-copper project located in the Pilbara region of Western Australia.

A measured and indicated resource of 658 million tonnes grading 0.045% molybdenum, 0.08% copper and 1.3 grams silver per tonne is reviewed using a 0.02% molybdenum cut-off grade. A further 390 million inferred tonnes was also tabled at 0.04% molybdenum, 0.07% copper and 1.2 grams silver per tonne.

Moly Mines attributes the more than 100% boost in resource to expansion of the mineralized zone by step-out drilling and a drop in the cut-off grade from 0.03% to 0.02% molybdenum aided by positive price forecasts for the metal. Molybdenum grade dropped roughly 25% with the additional tonnage mostly coming from the lower grade halo around the periphery of the deposit.

The company says it is revising mine plans based on the larger resource that it expects will result in a major boost in reserves and expand mine-life beyond 20 years. It is also finalizing energy procurement contractual arrangements and is in the final stages of environmental permitting both anticipated to be wrapped up by mid-2008.

In late-2007 Moly Mines initiated scoping studies on a potential 50% expansion of the proposed mining rate to the 25-million-tonnes-per-year level to capitalize on a strong market outlook for molybdenum.

Additionally, in 2007 the company began spinning out its non-core assets including the sale of its gold projects in New South Wales, Australia to Cortona Resources (CRC-A). Moly Mines received A$5 million in cash and 12 million Cortona shares to become a major shareholder in the Aussie junior.

Shares of Moly Mines have recently slumped to more than a one-year low around the $1.70 level. Since its October-2006 initial public offering on the TSX, the stock has seen a trading range of 95-$7.00.