Investor PresentationJune 2012

Presenter: Mark Smith, P.E.,

President and CEO, Molycorp, Inc.

Safe Harbor Statements

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This presentation contains forward-looking statements that represent Molycorp’s beliefs, projections and predictions about future events or Molycorp’s future

performance, including those regarding the acquisition of Neo Materials. 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 successfully integrate Neo into Molycorp’s operations; Molycorp’s ability to achieve fully the strategic and financial objectives related to the acquisition of Neo,

including the acquisition's impact on Molycorp’s financial condition and results of operations; unexpected costs or liabilities that may arise from the ownership or

operation of Neo; Molycorp’s ability to secure additional capital to implement its business plans; Molycorp’s ability to complete its initial modernization and expansion

efforts, including the accelerated start-up of the Mountain Pass facility, which management refers to as Project Phoenix Phase 1, and the second phase capacity

expansion plan, which management refers to as Project Phoenix Phase 2, and reach full planned production rates for REOs and other planned downstream products, in

each case within the projected time frame; the success of Molycorp’s cost mitigation efforts in connection with Project Phoenix, which, if unsuccessful, might cause its

costs to exceed budget; the final costs of Project Phoenix Phase 1, including the accelerated start-up of the Mountain Pass facility, and Project Phoenix Phase 2, which

may differ from estimated costs; uncertainties associated with Molycorp’s reserve estimates and non-reserve deposit information, including estimated mine life and

annual production; uncertainties regarding global supply and demand for rare earth materials; uncertainties regarding the results of Molycorp’s exploratory drilling

programs; Molycorp’s ability to enter into additional definitive agreements with its customers and Molycorp’s ability to maintain customer relationships; the ability of

Molycorp’s sintered neodymium iron boron rare earth magnet joint venture with Daido Steel Co., Ltd. and Mitsubishi Corporation to successfully manufacture magnets

within its expected timeframe; Molycorp’s ability to successfully integrate recently acquired businesses; 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; uncertainties associated with unanticipated geological conditions related to mining; the

effects of adverse general economic and business conditions; the rate of exchange of the U.S. dollar to the Canadian dollar, the Japanese yen, the Chinese Renminbi and

the Euro; uncertainties associated with the effects of industry competition, inflation, the availability and prices of raw materials and product pricing; Molycorp’s ability

to achieve anticipated production costs and realize the cost benefits of new technologies; unexpected actions of domestic and foreign governments; and various events

that could disrupt operations, including natural events.

For more information regarding these and other risks and uncertainties that Molycorp may face, see the section entitled “Risk Factors” of the Company’s Annual Report

on Form 10-K for the year ended December 31, 2011 and of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2011. Any forward-

looking statement contained in this presentation or the Annual Report on Form 10-K or the Quarterly Report on Form 10-Q reflects Molycorp’s current views with

respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Molycorp’s operations, operating results, growth strategy and

liquidity. You should not place undue reliance on these forward-looking statements because such statements speak only as to the date when made. 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 mater.

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1. As of 6/11/12.2. Represents simple addition of Molycorp’s US GAAP Revenue and EBITDA with Neo’s IFRS Revenue and EBITDA

Molycorp at a Glance

Listed:

Vision & Values:

Strategy:

Founded/IPO:

2011 Financials:

Employees:

� Revenues: $1,197mm, EBITDA: $450mm, Net Income: $228mm(2)

� Mine to Magnetics

� Vertically integrated global operating platform producing high purity rare earth oxides, metals, alloys, magnetic materials and rare metals

� Building the industry leading low-cost and high margin capture rare earth company in the world

� To be the world class rare earth products and technology company recognized for its ETHICS:

� Excellence, Trust, Honesty, Integrity, Creativity and Safety

� NYSE: MCP

� Market capitalization: $2.2 billion (1)

� Shares outstanding: 109.9 million diluted

� 1949/July 29, 2010

� >2,600

What We’ll Discuss

Investment Highlights

A Compelling Market Opportunity

Project Phoenix Update:

Mountain Pass On Track

Molycorp

A Fully Integrated Global Producer

Proprietary Technologies:

Molycorp’s Competitive Advantage

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1

2

3

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Key Investment Highlights

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Molycorp Represents The Premier Rare Earth Opportunity

Compelling Rare Earth Sector Fundamentals

� Combines world-class rare earth resource with world leading high-purity rare earth

processing capabilities

� Vertically integrated mine-to-magnetics supply chain

� Global low-cost rare earth oxide producer

� Leading value-add downstream operations

� Significant product diversification and revenue visibility

� Proven and experienced management team

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Molycorp produces all 15 of these rare earth elements commercially

Cerium

Lanthanum

Praseodymium

Neodymium

Samarium

Europium

Gadolinium

Terbium

Dysprosium

Holmium

Erbium

Thulium

Ytterbium

Lutetium

Yttrium

Significant REEs

Reduces

� Weight

� Emissions

� Energy consumption

Allows

� Greater efficiency

� Performance

� Miniaturization

� Speed

� Durability

� Thermal stability

Properties Product Applications

Critical to EnablingHigh-Value Technologies

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2011 Total Demand

105,000 Mt REO

2016E Total Demand

160,000 Mt REO

2011 – 2016E Total Growth

52%

2011–2016E End-Market Demand CAGR (REO)

Robust Expected Demand Growth

2016E REO Demand by Application (160k Mt)

2011 REO Demand by Application (105k Mt)

Source: IMCOA, April 2012. 2011 estimates are ±15%; 2016 estimates are ±20%1. The use of cerium for water purification is included as a high growth application; leading to large increases in demand in 2012 and 2013

(1)

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Additional Supply Is Needed:Molycorp Forecast:

Global Rare Earths Supply and DemandMt, REO

Source: Molycorp Estimates (May 2012)

We believe third party forecasts overestimate the amount of future supply from China andRest of World, and underestimate demand growth in China.

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2005 2006 2007 2008 2009 2010 2011F 2012F 2013F 2014F 2015F 2016F

China Supply Molycorp Supply - Phase 1 Other Supply China Demand Adjusted Global Demand

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18 25 36% Margin: 19 10 25 36% Margin: 7

N/A 46% Margin: N/A

Pro Forma Run-Rate Indicative Financials

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MCP Key Metrics

2011 2011 Run Rate (2)

Production (kg) 3,369,000 19,050,000

Average Price ($/kg) $87.00 $87.00

Average Cash Cost ($/kg) $20.96 $20.96

2011 Pro Forma Run-Rate EBITDA Sensitivity (1)(2)

Price ($/kg)

$100 $90 $80 $70 $60

$28 (1Q12) 1,588 1,398 1,207 1,017 826

$21 (2011) 1,722 1,531 1,341 1,150 960

$20 (Lynas) 1,741 1,550 1,360 1,169 979

$15 (China) 1,836 1,645 1,455 1,264 1,074

$3 (MCP Expected)

2,065 1,874 1,684 1,493 1,303

Cash COGS ($/ kg)

1,364

1,026

6321,197

450319

0

500

1,000

1,500

2,000

2,500

3,000

Revenue EBITDA Net Income

2,561

1,476

951

PF 2011 Financials: Actual vs. Run- Rate (1)(2)

2011 Run-Rate Actual 2011

1. Represents simple addition of Molycorp’s US GAAP Revenue and EBITDA with Neo’s IFRS Revenue and EBITDA2. Run-rate represents simple arithmetic application of current cash costs and revenues per kg to a higher production rate, which is assumed to produce REOs in the same proportions as we currently produce.

Our actual results upon completion of Project Phoenix will depend upon (i) actual production rates of individual REOs, (ii) pricing at such time, (iii) our costs at such time, including cash costs of production and SG&A expense. You should not assume that our actual results will be consistent with the run-rate amounts set forth on this slide

3. SRK April 2010 Report

(3)

Q1 ’12 - $95.00

Project Phoenix Update

Mountain Pass on Track

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NdPr

16%

Cerium

Non-metal

50%

Other

1%

Lanthanum

Oxide

28%

Other

Lanthanum

Products

(High Purity

Oxides and

Metals)

5%

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Category REO% k tonsREO

(Mlbs)Value at 2010

Prices ($MM)(1)Value at 2011

Prices ($MM)(1)

SEC Guide 7: Proven & Probable 7.98 18,400 2,993 26,066 118,111

NI 43-101: Measured & Indicated 6.68 24,341 3,251 28,313 128,293

NI 43-101: Inferred 6.32 10,446 1,320 11,496 52,091

NI 43-101 Totals 34,787 4,571 39,809 180,383

World-Class, Rare Earth Mine & Processing Facility

� Almost 60 years of operating history

� Mining operations re-started in Dec. 2010

� Fully permitted through 2042

� Construction of Project Phoenix Phase 1 & 2 well underway

� Existing infrastructure

� Water

� Electricity

� Natural gas pipeline

� Easy access to Interstates, rail head, and California seaports

� Estimated 30+ years mine lifebased on Phase 1 production plan

Source: SRK reports dated April 2010 and April 2012

Reserves & Resources

1. Based on average sales price on a REO equivalent basis of $19.20/kg in 2010 and $87.00/kg in 2011

Expected Production Breakdown by REO

Project Phoenix

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Mountain Pass

Project Phoenix

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Project Phoenix Completion Status: June 2012

Project Phoenix facilities that are now operational:

� Mining of 2,800 short tons of fresh ore per day, 4 days/week

� Crushing / Blending

� First Stage Crack Facility

� Mill & Flotation Circuit

� Paste Tailings Facility

� Paste Tailings Permanent Disposal Facility

� Natural Gas Pipeline Lateral Completed

Over the next several months, you’ll see the completion of

construction, testing, and commissioning of:

� Full scale operations of Combined Heat & Power

� Full-size, multi-stage Cracking Facility

� Solvent exchange and heavy concentrate production

� Rare earth oxide separations

� Product finishing

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Project Phoenix

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40,000**

19,050**

3,516*

~8,000 –

10,000*

(mt of REO equivalent)

* Company wide production / guidance as of February 23, 2012

** Mountain Pass only production

Rare Earths We Will Produce at Mountain Pass:

� Lanthanum� Cerium� Praseodymium� Neodymium� Samarium

� Dysprosium� Europium� Terbium� Gadolinium� Yttrium

Project Phoenix Production Ramp

(By Q4 2012)

(By mid-2013)

Excellence in Safety

� Molycorp Mountain Pass: 2,529 days without a Lost-Time

Incident (6.75+ years) as of June 14, 2012

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� Project Phoenix: 2.8+ million

hours worked without a Lost

Time Incident

� Molycorp Metals & Alloys:

Celebrated its 15th year

without a Lost Time Incident

in February, 2012

Molycorp

A Fully Integrated Global Producer

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Molycorp Yesterday

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Facility Locations of Molycorp & Its Subsidiary Companies

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Mining & Production of Concentrate

REO Separation Rare Earth Metals

Upgrade into Alloys, Magnet Powders

Magnetic Material Manufacturing

1 2 3 4 IntermetallicsJapanMetals and AlloysSilmetMountain Pass

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A Highly Strategic Fit

� Combines Molycorp’s world-class rare earth resource with Neo Material’s proven leadership in the production of technologically advanced rare earth products

� Provides immediate direct exposure to China (~70% of global rare earth consumption)

� Leverages Neo Material’s existing infrastructure to allow Molycorp the ability to ramp up its overall production, and utilize much of its 40,000 Mtpa capacity by mid-2013

� Expands capabilities for bonded NdFeB rare earth magnets

� Expands strategic rare metals portfolio used in advanced electronics, photovoltaic, aerospace, catalytic converters, and lighting industries

Molycorp + Neo

Molycorp Products

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Cerium

Lanthanum

Praseodymium

Neodymium

Samarium

Europium

Gadolinium

Terbium

Dysprosium

Holmium

Erbium

Thulium

Ytterbium

Lutetium

Yttrium

Rare Earths

Tantalum

Niobium

Rhenium

Gallium

Indium

Rare Metals

NdFeB Alloy

SmCo Alloy

NdFeB sinteredpermanentmagnets

NdFeB MagneticPowders

Magnetics

XSORBX™

Zirconium materials

Other Products

�

�

�

�

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�

�

�

�

�

�

�

�

�

�

�

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�

�

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Domestic Chinese

Companies, 18%

Japanese Companies,

11%

US Companies, 6%

European

Companies,

5%

Other, 2%

China

42%

Japan

33%

North

America

15%

Europe

7%

Other

3%

Neo Materials

Volume by Geography

(FY’11)

2,800 to 4,800 mt of material sent to NEM’s Chinese facilities for

further processing (7% to 12% of Phase 2)

• 58% exported by Neo Materials outside of China

• 24% sent to multinational companies with operations in China

• 18% sold to domestic Chinese companies

At least 82% of MCP material exits China

* Neo Materials estimates

1.3.

Neo MaterialsVolume Chain

2. Percent of Overall Volume in

China

by National

Origin

How Proprietary TechnologiesDrive Molycorp’s

Competitive Advantage

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Molycorp’s Proprietary Technology Advantage

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1. Project PhoenixAdvanced Technologies

� Processing efficiencies ���� lower

production costs & longer resource life

� Proprietary cracking technology � greater HREE production &

longer resource life

� RE recycling capabilities �

greater HREE production & longer resource life

� Smaller environmental footprint � lower costs and greater

community and stakeholder support over the long-term

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Molycorp’s Proprietary Technology Advantage

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2. XSORBX™ WaterPurification Technologies

� Gives us access to large, high-value water purification markets.

� Allows us to price cerium at water purification technology prices.

� A potentially very large outlet for our cerium

� U.S. target water market opportunity: ~163,000 mt

� A 12.5% penetration into U.S. markets would consume all of Mountain Pass’ cerium at Phase 2 production rates

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2

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Molycorp’s Proprietary Technology Advantage

3. Neo’s Ultra-High-PurityRE Processing Capabilities

� Can process rare earths up to 6Ns purity � opens up new,

high-value niche markets

� Multi-layer ceramic capacitors, used in high-end and/or dual-use electronics

� Phosphors in energy efficient lighting

� Medical devices

� Military and dual use manufacturers increasingly demanding higher-purity REs

� Will accelerate Molycorp’s deployment of those technologies at Mountain Pass and Silmet

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2

3

Molycorp’s Proprietary Technology Advantage

4. Neo’s Rare Metal Recyclingand High-Purity Production

� Can deliver purity levels of up to 8Ns, which opens up new, high-value niche markets in:

� Wireless

� LED / Flat Panels

� Solar

� Catalysts

� Super Alloys

� One of the world’s leading manufacturers of gallium trichloride for the LED industry

� State-of-the-art recycling technologies combined with world-class operator expertise

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1

2

3

4

Molycorp’s Proprietary Technology Advantage

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5. Intermetallics Next-GenerationMagnet Technologies

� New technology that does not depend upon existing IP

� Greater performance with less reliance on Dysprosium

� Higher production yields

� Large, rapidly growing target markets: automotive and home appliances (small motors)

� JV partners (Daido Steel & Mitsubishi Corp.) have world-class technology and sales/marketing capabilities

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Molycorp’s Proprietary Technology Advantage

6. Boulder Wind PowerTechnology

� Innovative permanent magnet generator technology that uses no Dysprosium.

� PMGs estimated to achieve a levelized cost of energy 30% below the latest geared and direct drive systems.

� This technology can help drive greater global utilization of PMG/Direct Drive designs.

� Molycorp is a preferred provider of magnetic materials for manufacturers that utilize BWP’s technology.

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Summary

Project Phoenix is on track for Q4 Phase 1 production ramp-up.

Neo acquisition will solidify Molycorp’s position as a leading, fully integrated global rare earth producer.

Molycorp’s proprietary technologies are key to our competitive advantage.

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1

2

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Building Tomorrow’s World Today™

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