General Moly (AMEX:GMO) (TSX:GMO) announced plans to further conserve cash while retaining the ability to start construction at the Company's 80% owned Mt. Hope project pending improvements in the molybdenum and capital markets.

Bruce D. Hansen, Chief Executive Officer, said, "Given continued uncertainty in the project finance market, current low moly prices, and a longer than expected timeframe to receive the ultimate permits to begin construction at the Mt. Hope project, the Company and our partner, POS-Minerals, have announced prudent steps to reduce planned expenditures for 2009 and 2010 in order to maximize financial flexibility and preserve maximum shareholder value. With a current cash balance of approximately $80 million or $1.11 per outstanding share, we have the capacity to continue aggressive permitting efforts, maintain efforts to secure full project financing, and secure the most critical long lead capital items for the ultimate construction of the Mt. Hope project.

"We continue to believe that the Mt. Hope project is the best moly asset currently under development and continue to be bullish toward the longer-term fundamentals of the moly market. However, given the lack of improvement in the moly and financing markets, we will position General Moly to maximize re-start capability based on maintaining our world-class assets, people and partners while minimizing ongoing expenses. Once full financing is structured, it is expected that Mt. Hope can be constructed and in production within 20 months. Our permitting efforts will continue full-time and the Company will maintain its orders for grinding, milling, and other specialty long-lead equipment, although other engineering, administrative and third-party work will be slowed.

"We will continue work with Credit Suisse and Barclays to seek ultimate project financing. Additionally, we will continue evaluating all sources of potential interim capital, including equity partners at the asset level and vendor financing with a focus on minimizing dilution, long term cost and risk to shareholders. Given our strong off-take agreements and other preparatory work completed, we believe the Company is well positioned to execute a project finance facility once the moly price and credit conditions improve."

CASH CONSERVATION INITIATIVES

The Company anticipates an unaudited cash balance of approximately $80 million at the end of the first quarter. With its cash conservation efforts, total cash utilization other than key equipment purchases is anticipated to decline to approximately $1 million per month.