Moly Mines Limited

Moly Mines Limited was incorporated in January 2003 as Hibernia Gold Pty Ltd. By December 2003, the Company had successfully raised over A$1 million in seed capital as a private company and had selectively built up a portfolio of key gold assets in New South Wales. The Company targeted and acquired projects in historic gold mining areas that its investigations suggested were prospective for undiscovered gold mineralisation. In March 2004, Hibernia Gold Limited successfully completed an IPO in Australia of 7,000,000 shares at A$0.20 per share, raising A$1,400,000 before costs, and was listed on the ASX under the symbol “HIB” on March 11, 2004 (later to become “MOL” following the Company’s name change). After listing on the ASX, Moly Mines focused its activities on its two major projects: the Spinifex Ridge Project and the Dargues Reef Gold Deposit. In April 2005, Hibernia Gold raised a further A$18,900,000 to fund the Pre-Feasibility Study on the Spinifex Ridge Project and for other exploration activities by placing 13.5 million shares at A$1.40 per share in the United States, Australia and the United Kingdom. The Company changed its name from Hibernia Gold Limited to Moly Mines Limited in May 2005. In August 2006, Moly Mines raised a further A$2 million in gross proceeds to fund ongoing operations by placing 1,666,667 shares at A$1.20 per share. On October 27, 2006, the Company closed its IPO on the TSX of 16,500,000 ordinary shares issued at a price of C$1.05 per ordinary share for gross proceeds of C$17,325,000. The ordinary shares were issued pursuant to the final prospectus of the Company dated October 20, 2006. The offering was completed through a syndicate of agents led by Paradigm Capital Inc. and including Haywood Securities Inc. and Wellington West Capital Markets Inc. The funds raised were to be used primarily in the completion of the Full Feasibility Study for the Spinifex Ridge Project in addition to providing working capital to maintain and develop the New South Wales gold and molybdenum prospects. In February 2007 Moly Mines announced that it had entered into a binding term sheet, subject to due diligence and regulatory approvals, with ASX listed Cortona Resources Limited to sell its New South Wales gold assets in a cash, share and royalty deal. Upon closure, which is expected by May 31, 2007, Moly Mines will receive A$5 million cash, 12 million fully-paid ordinary shares in the capital of Cortona, and 8 million options to acquire further ordinary shares in the capital of Cortona exercisable at A$0.35 and expiring two years from the date of issue. The company will also receive a further 8 million options exercisable at A$0.50 (these options do not vest until either the successful delineation of a total of 1 million ounces of measured and/or indicated resource from the New South Wales gold assets or a decision to mine is made on any of the New South Wales gold assets; in addition, on achievement of either of these milestones, Moly Mines will receive a A$4 million cash payment) In April 2007, Moly Mines raised a further C$22.5 million through a placement to sophisticated investors lead again by Paradigm Capital Inc. The placement was made at C$3.00 per share. Since its incorporation Moly Mines has raised more than A$65 million and has only 59.3 million shares on issue. The Company’s registered and records office is at 46-50 Kings Park Road, West Perth, Western Australia, 6005, Australia. The Company also maintains an office at Suite 1801, 80 Richmond Street West, Toronto, Ontario M5H 2A4, Canada. The Company currently has two wholly-owned and controlled direct subsidiaries; Moly Metals Australia Pty Ltd. (“Moly Metals”) and Copper Metals Australia Pty Ltd. (“Copper Metals”), each of which was incorporated in Australia under the Corporations Act 2001 (Cth). The Company’s interests in the Spinifex Ridge Project are held by and registered in the name of Moly Metals. Copper Metals was incorporated on July 11, 2006 with a view to developing potential copper assets and projects and is currently dormant. In July 2007, Moly Mines sold its wholly owned subsiduary Big Island Mining Limited ("Big Island") to Cortona Resources Limited for $5 million in cash, plus 12 million fully paid ordinary shares in Cortona and 8 million options in Cortona exercisable at $0.35 (expiring 2 years from the date of issue).

In addition, on either the successful deliniation of 1 million ounces of measured and/or indicated resource or a decision to mine, Moly Mines will be entitled to an additional $4 million and a further 8 million options exercisable at $0.50.

As a result of Moly Mines shareholding in Cortona Resources Limited and board representation, Cortona is considered to be a related company.