Hanlong (USA) Mining Investment Inc. - News Release

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 andTSX: 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.

Hanlong (USA) Mining Investment Inc.
c/o Suite 2903, 9 Castlereagh Street, Sydney
NSW 2000 Australia