First Quarter 2011 Financial Results

and Project Phoenix Update

May 10, 2011
 Safe Harbor Statement

This presentation contains forward-looking statements that represent Molycorp’s beliefs, projections and predictions about future events or Molycorp’s
future performance. Forward-looking statements can be identified by terminology such as “may,” “will,” “would,” “could,” “should,” “expect,” “intend,” “plan,”
“anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms or other similar expressions or phrases. These forward-looking
statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause Molycorp’s actual results,
performance or achievements or industry results to differ materially from any future results, performance or achievement described in or implied by such
statements.

Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to:
Molycorp’s ability to secure sufficient capital to implement its business plans; Molycorp’s ability to complete its modernization and expansion efforts and reach full
planned production rates for rare earth oxides and other planned downstream products; uncertainties associated with Molycorp’s reserve estimates and non-
reserve deposit information; uncertainties regarding global supply and demand for rare earths materials; Molycorp’s ability to maintain appropriate relations with
unions and employees; Molycorp’s ability to successfully implement its “mine-to-magnets” strategy; environmental laws, regulations and permits affecting
Molycorp’s business, directly and indirectly, including, among others, those relating to mine reclamation and restoration, climate change, emissions to the air and
water and human exposure to hazardous substances used, released or disposed of by Molycorp; and uncertainties associated with unanticipated geological
conditions related to mining.

For more information regarding these and other risks and uncertainties that Molycorp may face, see the section entitled “Risk Factors” beginning on page
15 of the prospectus described below. Any forward-looking statement contained in this presentation or the prospectus reflects Molycorp’s current views with
respect to future events and Molycorp assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the
reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future,
except as otherwise required by applicable law.

This presentation also contains statistical data and estimates obtained by Molycorp from industry publications and reports generated by third parties.
Although Molycorp believes that the publications and reports are reliable, it has not independently verified such data.

THIS PRESENTATION USES THE TERM “RESOURCES” TO DESCRIBE THOSE QUANTITIES OF REE’S THAT ARE POTENTIALLY RECOVERABLE FROM
ACCUMULATIONS YET TO BE DISCOVERED. BECAUSE OF THE UNCERTAINTY OF COMMERCIALITY AND LACK OF SUFFICIENT EXPLORATION DRILLING, THE
RESOURCES CANNOT BE CLASSIFIED AS RESERVES. INVESTORS ARE ADVISED THAT THE SEC DOES NOT RECOGNIZE RESOURCES. ONLY PROBABLE AND
POSSIBLE RESERVES MAY BE DISCLOSED TO INVESTORS IN AN SEC FILING. RESOURCES HAVE A GREAT AMOUNT OF UNCERTAINTY AS TO THEIR EXISTENCE.
THERE IS NO CERTAINTY THAT ANY PORTION OF THE RESOURCES WILL BE DISCOVERED AND, IF DISCOVERED, WHETHER THEY COULD BE DEVELOPED
ECONOMICALLY. THEREFORE, INVESTORS ARE CAUTIONED NOT TO ASSUME THAT ALL OR ANY PART OF MOLYCORP’S RESOURCES EXIST, OR THAT THEY CAN BE
DEVELOPED ECONOMICALLY. ACCORDINGLY, INFORMATION CONCERNING DESCRIPTIONS OF RESOURCES CONTAINED IN THIS PRESENTATION IS NOT
COMPARABLE TO INFORMATION INCLUDED IN SEC FILINGS.

The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you
invest, you should read the prospectus in that registration statement and the other documents the issuer has filed with the SEC for more complete information
about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any
underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free Morgan Stanley & Co.
Incorporated at 1-866-718-1649 or J.P. Morgan Securities Inc. at 1-866-803-9204.

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 Call Participants

Mark A. Smith
President, Chief Executive Officer and Director

James S. Allen
Chief Financial Officer and Treasurer

Jim Sims
Director of External Affairs

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 Call Agenda

n Operational Highlights – Mark Smith, CEO

– Met all milestones in Q1
– Project Phoenix Phase 2 approved
– Successful follow-on offering
– Acquisitions
– Sumitomo and Hitachi updates
– 2011 Milestones

n Financial Review – Jim Allen, CFO

– Q1 2011 financial statement review
– Capital plan progress

n Production Guidance/Rare Earth Market Outlook – Mark Smith

n Questions & Answers – Mark Smith and Jim Allen

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 Operational Highlights

n Met all milestones and targets in Q1

– Emissions permit for cogen facility
– Initial building permits
– Construction underway
– Major equipment ordered

n Capacity Expansion Phase Two Approved

– Takes production capacity to 40,000 tons/year in 2013

n Follow On Offering Partially Funds Phase Two

– $199 million raised
– Mandatory convertible preferred stock, dividend 5.5%

n Acquisitions for forward integration

– AS Silmet: Europe, additional capacity, metals capability
– Santoku America: metals and alloys

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 Forward Integration Acquisitions

n Molycorp Silmet AS
– Benefits:
• First European base of operations
• Larger global customer base
• Greater rare earth production capacity
• Expanded product line.
– Purchased ~90% controlling interest for $89 million
– Sellers: Silmet Grupp and Treibacher Industrie AG
– Silmet Grupp retains ~10% interest
– Based in Sillamäe, Estonia
– 550 employees
– One of only two rare earth processing facilities in Europe.
– Produces rare earth oxides, rare earth metals (including
didymium metal), niobium and tantalum metals
– Feed stocks supplied by Molycorp

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 Forward Integration Acquisitions

n Molycorp Metals and Alloys

– Acquisition price $17.5 million, all cash
– Expands our product line into high-purity rare earth metals and
alloys
• NdFeB
• SmCo
– Will source feed stocks from Mountain Pass.
– Specialty alloys produced there for 30+ years.
– Highly trained and experienced workforce.

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 Hitachi Update

n Joint team feasibility study complete

n Formal presentation May 2

n Both parties strongly favor moving forward with JV

n Agreement expected to be executed this summer

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 H1 2011 Milestones

n 2011 Milestones
– Continue construction of Mountain Pass modernization (Phase 1)

– Finish capital raising efforts so that Phase 1 and Phase 2 are fully funded

– Complete engineering around Phase 2 expansion for up to 40,000 tonnes

– Convert 50% or more of the Phase 1 LOI product volume into final
contracts

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 Q1 2011 Financial Results

n Sales of $26.3 million

– Up 21% sequentially, 770% y/y

n Sold 696 metric tons

– Up 9% sequentially, 64% y/y

n Average price $37.73/kg vs. $34.02/kg in Q410, $7.13/kg last

year

n Sequential growth balanced between volume and price

Revenue (millions) Metric Tons Sold
Product Q1 2011 Q4 2010 Q1 2010 Q1 2011 Q4 2010 Q1 2010
Ceric Hydrate $7.9 $7.2 -- 170 151 0
Didymium Products $4.7 $6.3 $0.1 122 120 69
Lanthanum Products $11.5 $5.6 $2.8 415 280 239
Cerium Products $1.2 -- 0 0 0
Other $1.0 $2.6 $0.2 0 87 0

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 Q1 2011 Financial Results

n Adjusted cost of goods sold $15.4 million, 41.5% gross

margin
– Up 3.8 percentage points versus Q4 2010

n SG&A of $8.3 million, up $2.4 million versus Q4 2010

– Staffing up for mine project, business development

n Adjusted earnings $2.0 million or $0.01 per share

– Compares to $2.2 million and $0.03 in Q4 2010*
– Compares to ($7.7 million) and ($0.16) in Q1 2010

* Previous periods are adjusted for comparability, so will not match previously reported GAAP results

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 Corporate Capital Plan Update

n Molycorp Silmet and Capital Need Amount

Molycorp Metals & Alloys Phase One Plan $531
acquisitions fully paid Phase Two Plan $250
Acquisitions (cash payments) $27
n Mountain Pass Capital Total Need $808
Plan nearly funded

n Multiple Alternatives Capital Source Amount

– Traditional debt Offerings $578
– Project financing Sumitomo* $130
– Public debt offering Remaining to be raised $100
– DoE loan guarantee Total $808
program

* Assumes consummation of the Sumitomo memorandum of understanding

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 Follow On Offering

Symbol/Exchange: MCP PR/NYSE

Security: Mandatory Convertible Preferred

Shares Sold: 2,070,000

Pricing Date: February 16, 2011

Net Capital Raised: $199.6 million

Joint Book runners: JP Morgan, Morgan Stanley

Terms: Converts to common in February

2014.

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 Sumitomo Updates

n Due diligence underway

n Government funding is still available

n Earthquake/tsunami has slowed government processing

n Still anticipate Q3 closing

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 Production/Volume Guidance

Molycorp Minerals Molycorp Silmet Molycorp Metals & Alloys

Total
(Mountain Pass, CA) (Estonia) (Tolleson, AZ)
(range of mt of REO)
(range of mt of REO) (range of mt of REO) (range of mt of REO)

Low High Low High Low High

Range Range Range Range Low Range High Range Range Range
1Q2011
(actuals) 638 638 229 229 68 68 935 935
2Q2011 755 1,021 235 317 51 69 1,040 1,408
3Q2011 977 1,321 235 317 51 69 1,262 1,708
4Q2011 1,017 1,377 235 317 51 69 1,303 1,763
3,387 4,357 933 1,181 221 275 4,541 5,813
(540 tons of (550 tons of
total alloy) total alloy)

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 Rare Earth Market Conditions - China

n 1H 2011 Chinese export quotas continue 7-year downward trend; senior

officials warn of declining quotas in the future.

n Multiple Chinese government initiatives will affect production and price

levels: hundreds of illegal mines closed; export licenses reduced; export
taxes increased; VAT rebate on exports withdrawn; coordinated pricing
sought; environmental reforms; vertical industry consolidation being
forced.

n Implementation of strict environmental standards expected to “double

production costs” (Wang Guozhen, the former VP of China Nonferrous
Engineering and Research Institute)

n Internal REE demand rising with GDP growth while Chinese production from
2005-2010 relatively stagnant

n 59% of respondents think China will “become a net importer of rare earths
by 2015” in a Metal-Pages.com poll. Senior Chinese officials not ruling out
this possibility.

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 Rare Earth Market Conditions - Prices

n Prices continue to rise as supply/demand imbalance widens

n Our future product mix is currently priced at roughly

$145/kg
Prices (USD/Kg)
Rare Earth Oxides 1-Jan-11 31-Mar-11 Change
Lanthanum 60 121 102%
Cerium 61 121 98%
Praseodymium 86.5 196 127%
Neodymium 87 201 131%
Samarium 34.5 106.5 209%
Europium 630 940 49%
Gadolinium 44.5 147 230%
Terbium 605 990 64%
Dysprosium 290.5 640 120%
Yttrium 72.5 143 97%

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 Annual Shareholder’s Meeting

June 1, 10:00 am Mountain Time

Inverness Hotel and Conference Center

200 Inverness Drive West
Englewood, CO 80112
+1 (800) 832-9053

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