Chevron Mining agrees to sell Mountain Pass rare earth mining operations

    ENGLEWOOD, CO, Sept. 10 /CNW/ - Chevron Mining Inc. ("Chevron") today
announced that it has entered into an agreement to sell its Mountain Pass rare
earth mining operations to Rare Earth Acquisitions LLC ("REA"). The
transaction is expected to close in late September, 2008.
    REA is a special purpose company owned by Resource Capital Funds, Pegasus
Partners IV, LP, The Goldman Sachs Group, Inc., Traxys North America LLC and
Carint Group LLC. Included in the acquisition is the Molycorp name and upon
closing, the company will be renamed Molycorp Minerals LLC.
    Rare earth minerals are used in a wide variety of applications including
catalysts for the oil refining industry, neodymium-iron-boron ("NdFeB")
magnets which are used in high energy electric motors like those used in
hybrid vehicles, and new high energy battery applications. Mountain Pass is
the only significant developed commercial rare earths resource in the western
world with enough resources to provide significant levels of global supply for
30 to 50 years. Located about 50 miles south of Las Vegas, Nevada, the
operation has produced and sold rare earth products continuously since 1951.
In 2007, Chevron Mining Inc. commenced rare earth separations operations using
lanthanum concentrates from existing stockpiles to produce didymium (a
combination of neodymium and praseodymium) and lanthanum products.
    The primary physical assets at Mountain Pass include the mine and ore
resources, a flotation mill, and a specialty plant which refines the milled
concentrate. Mountain Pass also has large stockpiles of bastnaesite
concentrates located on the property. The Mountain Pass operations have an
experienced and highly skilled work force, including on site operations
personnel and a rare earth research and development team.

    About Chevron Mining Inc:

    Chevron Mining Inc. is a diversified coal and metal mining company with
five US-based mines, including an underground coal mine in Alabama, two
surface coal mines in Wyoming and New Mexico, an underground molybdenum mine
in New Mexico, and an open pit rare earth mine in California. The company is a
wholly-owned subsidiary of Chevron Corporation and is headquartered in
Englewood, CO.

    About the buyers:

    Resource Capital Funds is a private equity firm specializing in
investments globally in the mining and minerals sector. The firm was founded
in 1998 and operates with over $900 million in assets under management and
offices in Denver, Colorado and Perth, Australia. For more information visit
the company's website at
    Pegasus Partners IV, LP is an affiliate of Pegasus Capital Advisors, LP,
a private equity firm that manages close to $1.8 billion in assets through
several private equity funds. The firm provides creative capital solutions to
middle market companies across a wide variety of industries, with a particular
interest in businesses that make a meaningful contribution to society by
positively affecting the environment, contributing to sustainability and
enabling healthy living. For more information, visit the firm's website at
    Goldman Sachs is a leading global investment banking, securities and
investment management firm that provides a wide range of services worldwide to
a substantial and diversified client base that includes corporations,
financial institutions, governments and high net worth individuals. Founded in
1869, it is one of the oldest and largest investment banking firms. The firm
is headquartered in New York and maintains offices in London, Frankfurt,
Tokyo, Hong Kong and other major financial centers around the world. For more
information visit the firm's website
    Traxys North America is an international physical metals and minerals
marketing, distribution and trading company with over $4 billion in sales. For
more information visit the company's website at Carint Group
is an affiliate of Traxys North America owned by the Traxys managers including
Alan Docter and Mark Kristoff.

For further information:

For further information: Media Contact (for Chevron Mining Inc.):
Margaret Lejuste, Chevron Mining Inc.,, (303) 930-4002;
Media Contact (for REA): Ross Bhappu, Resource Capital Funds,,
(720) 946-1444

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