Molycorp Minerals LLC closes on purchase of Mountain Pass rare earth mining operations and names its new CEO

    DENVER, CO, Oct. 14 /CNW/ - Molycorp Minerals LLC ("Molycorp"),
previously known as Rare Earth Acquisitions LLC, today announced that it has
closed on the previously-announced purchase of the Mountain Pass rare earth
mining operations from Chevron Mining Inc. The transaction closed on September
30, 2008.
    Molycorp is also pleased to announce that Mark A. Smith has joined the
company as its Chief Executive Officer and member of the Board of Directors.
Mark was previously the President and CEO of Chevron Mining Inc.
    Molycorp is a special purpose company owned by Resource Capital Fund IV
L.P., Pegasus Partners IV, LP, The Goldman Sachs Group, Inc., Traxys North
America LLC and Carint Group LLC.
    The Mountain Pass mine, located in California approximately 50 miles
south of Las Vegas, Nevada, is the only significant developed commercial rare
earths resource in the western world. It has enough resources to provide
significant levels of global supply for over 30 years.
    The primary physical assets at Mountain Pass include the mine and ore
resources, a flotation mill, and a specialty plant which further upgrades the
milled concentrate. Mountain Pass also has large stockpiles of bastnaesite
concentrates located on the property. The other significant asset is an
experienced and highly skilled work force, including on site operations
personnel and a rare earth products research and development team.
    As President and Chief Executive Officer of Chevron Mining Inc., Mark
Smith was responsible for the company's three coal mines, one molybdenum mine,
a petroleum coke calcining operation and the Mountain Pass mine. Mr. Smith has
previously held numerous engineering, environmental and legal positions within
Unocal and later Chevron.

    About the buyers:

    Resource Capital Fund IV L.P. is the most recent in a series of private
equity funds sponsored by Resource Capital Funds, all of which have
specialized in global investments exclusively in the mining and minerals
sector. Resource Capital Funds, with over $900 million in assets under
management, was founded in 1998 and operates from offices in Denver, Colorado
and Perth, Australia. For more information visit

    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

    The Goldman Sachs Group, Inc. is a bank holding company and a leading
global investment banking, securities and investment management firm. Goldman
Sachs 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, 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: Ross Bhappu, Resource Capital Funds,, (720) 946-1444

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Resource Capital Fund IV L.P.

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