INTERVIEW WITH DEREK FISHER, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER OF MOLY MINES LIMITED (MOL)

“Iron Mineralisation at Spinifex Ridge”

http://www.brr.com.au/event/51648

FRIDAY, SEPTEMBER 19, 2008, 2:25 PM.

            BRR    Today on Boardroom Radio, I’m speaking with the Managing Director and Chief Executive Officer of Moly Mines, Mr. Derek Fisher. Derek, Thanks for

10                    joining us today.

            MOL    It’s my pleasure.

            BRR    Now Moly has had a couple of positive news out on the market lately. I want

15                    first get you to start by talking about the offtake you’ve given on the Interim financing.

            MOL    Yes, James. We announced that over a month ago that we’re in negotiations with the North American Institution with respect to providing an Interim Facility prior to the main financing for Spinifex Ridge for the development of a very

20                    large molybdenum project. That facility is $150 million and it is just about in place. It hasn’t been finalized yet but the announcement we’ve made basically says that the key terms and conditions have been agreed and that now subject to conferment with due diligence and just preparation of legal documentation. That is underway and we anticipate we’ll be in a position

25                    to draw down the funds sometime in October. So that’s moving pretty quickly and we’re comfortable that that is now going to happen.

            BRR    Now Derek, on the operation side of things, you’ve also received some… you’ve been doing some drilling on some of the prospects just next to

30                    Spinifex Ridge with some iron mineralisation, what are these results showing you?

            MOL    Well, there are some fairly spectacular results from our drilling on the iron formation which is right adjacent to Spinifex Ridge. Just to put into context, the moly deposit sits up against and what’s called Spinifex Ridge, it’s right….it

35                    caps into it in fact, and that ridge is an iron formation, geologically we call an iron formation and that’s a low grade iron ore, I guess. It’s a sort of iron ore that if it was in China or Russia or places like that, it would be upgraded to a product which they could use in the steel industry. At the moment it’s running say 35% to 45% iron. Within that iron formation, we have areas of high grade

40                    and we’ve announced some drilling results before on that. We had two areas which we’ve called Auton and Dalek, those two areas we announced some results on in the past. We’ve now…those announcements went out about three months ago. We’ve since had two drills operating there, two RC drills and we’ve actually had a diamond drill on those at the moment, and the

45                    announcement we’ve put out is an update on that drilling. So most of the new drilling is in fact on the Auton Prospect and again, it continues fairly spectacular numbers we had before. These include results such as 47 m of 59% iron that included the 22 m intersection at 63% iron. There was another 55-m intersection and 69-m intersections. So it’s continuing to hang together. It’s still, early days on our drilling. We still have a lot more drilling to do to define the resource but it’s starting to come together. These grades are thicker, the higher grade material is direct shipping hematite. Across the attraction of ore, this is just right next to the end, the Spinifex Ridge deposit.

5                      If you look at the map, we’ve published the Dalek Prospects sits within about 500 m of the edge of the planned pit, and it’s right adjacent to our waste dumps. The Auton Prospect is about 1.5 km away from the edge of the pit and just put that into context. The pit will be about 1.2 km in diameter, so this is right in the same area we’re going to be mining our moly and copper from

10                    the moly deposit. The Auton Prospect has got both laterite iron ore, start of iron ore sitting on top of it which appears to be from our geology and going around 55% to 60% iron and then there’s a high grade massive hematite zone sitting underneath it.

15                    The other thing we’ve announced is that we found another prospect to the west, it’s about another 500 m to the west of Auton and this is the Galifrey Prospect. We’ve put out surface sampling results, this is rock chip sampling and again those results came back with some excellent iron numbers. Those numbers include…. I think of the samples we collected, most of them were

20                    over 60% iron and four of them were in fact over 64% or 65% iron. So, it looks like we’re on to the same thing again and this area of outcropping iron is about the same size as Auton. So I guess the story is that this is starting to come together nicely now, this iron prospect, and being right in the same area where we’re going to develop the large molybdenum project, we will have the

25                    infrastructure there. We’ll have water, we’ll have gas, we’ll have power, we’ll have a mine village nearby, and anything we find will get mined as long as there we got to put, you know, carry the cost of the infrastructure because the infrastructure will be established for the moly project. So, it’s pretty exciting for us and these results they’re as about as good iron ore results as you get.

30

            BRR    Derek, just quickly talking about the molybdenum project itself, what are latest developments there? Can you give, you know, your shareholders or potential investors just a bit of bright (inaudible) (00:05:38) with Spinifex Ridge?

            MOL    Yes. Spinifex Ridge, we now have all our permitting in place for Spinifex

35                    Ridge. When I say all that permitting, all our major permitting…we’ve got our environmental permitting, both federal and state. We have our mining leases granted. We have our native title agreement in place. We now have the Mine’s Department here have accepted our mining plans and we now have permission to access the property. We’ve paid our initial environmental

40                    bonds and if we have the full financing for the project today, we could have exclose on the project tomorrow. This project is ready for launch, ready for development. It is the most advanced, large scale, new moly project in the world today and that’s one of the great advantages we have in this project.

45                    Our biggest hassle at the moment is the world financial markets and I don’t have to tell anyone that they are in turmoil, so this is the reason we’re in fact putting in place the Interim facility. That will allow us to maintain our work program that we have underway, for example, we have our ball mills, our primary crusher, all our comminution circuit under manufacture in Germany. Most of that is coming out of ThyssenKrupp subsidiary, Polysius. That’s about $100-million order and we will proceed with that because this equipment if we were to put it on hold now, has about a 2-year delivery. So at the moment we want to maintain those contracts and continue holding our place in the

5                      production schedule for that equipment.

                        We’re ready to move the construction camp on site. We’re about a month away from doing that. We have about over 150 housing units for the construction camp parked in Port Hedland at the moment and they’re going to

10                    be moved on site hopefully in about a month’s time, and that is what we’re planning. Again, I kind of emphasize as how close to commencing work on the project we are.

            BRR    Derek, we certainly appreciate you taking the time to give us an update on

15                    the latest projects at moly and some of the advantage you’re making and we certainly look forward to following the developments in the quarters ahead.

            MOL    Thank you very much, James.

INTERVIEW CONCLUDED

Contact brr@brr.com.au for more information

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