COLORADO, Oct. 30, 2012 /CNW/ – Hanlong (USA) Mining Investment Inc.
(“Hanlong”) announces that pursuant to a Subordinated Loan Agreement
entered into between Hanlong and General Moly Inc. (NYSE MKT: GMO and
TSX: GMO) (the “Corporation”) on October 26, 2012, Hanlong acquired, as
part of the consideration for providing a $125 million subordinated
debt facility to the Corporation, the ownership of warrants (the
“Warrants”) that entitle it to purchase in aggregate 10 million shares
of the Corporation’s common stock at the exercise price of $4.23 per
share, such warrants being exercisable at any time commencing April 26,
2013 and ending April 25, 2015.

Prior to the issuance of the Warrants, Hanlong held approximately 12.98%
of the issued and outstanding shares of the Corporation’s common stock.
After the issuance of the Warrants, the Warrants represent, together
with the common shares of the Corporation held by Hanlong prior to the
issuance of the Warrants, approximately 21.57% of the issued and
outstanding shares of the Corporation’s common stock (after giving
effect to the exercise of the Warrants but not the exercise of any
other options, warrants or other securities convertible to common
shares previously issued by the Corporation).

Mr. Nelson Feng Chen is a director and President of Hanlong and has all
the voting and investment power in respect of the common shares of the
Corporation held in the name of Hanlong delegated to him by the board
of directors of Hanlong.

Pursuant to a Securities Purchase Agreement entered into between Hanlong
and the Corporation dated March 4, 2010 (the “Securities Purchase
Agreement”), Hanlong has the right and obligation to acquire such
number of additional shares which, together with the common shares of
the Corporation (but excluding the Warrants currently held by Hanlong),
will amount to 25% of the fully diluted interest of the Corporation at
the time and on the conditions as specified in the Securities Purchase
Agreement for an additional consideration of US$40 million.

Pursuant to the Subordinated Loan Agreement, on October 26, 2012,
Hanlong and the Corporation also entered into an amendment to a
Stockholder Agreement that was previously entered into by the parties
on December 2010.

The Warrants were acquired in the normal course of Hanlong’s investment
activities. Hanlong may, directly or indirectly, at any time and from
time to time, increase or decrease its beneficial ownership or control
or direction of the Corporation’s securities depending on future
economic or market conditions.

The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.

SOURCE Hanlong (USA) Mining Investment Inc.