InterMoly - Update on Malmbjerg

Update on Malmbjerg

Malmbjerg is an advanced-stage molybdenum project in Eastern Greenland with an NI 43-101P compliant Measured and Indicated Resource containing 560 million pounds of molybdenum. InterMoly is presently completing a Pre-Feasibility Study (PFS) on this project.

Reports have been received from specialist consultant groups dealing with specific aspects of the project. These include a report by GR Technical on the design and operation of the mine, a report by Amec on the installation and operation of the process plant and infrastructure and a report by Knight Piesold on the construction and operation of the tailings management facility. The individual reports have been provided to SRK for audit and the preparation of a wrap-around PFS, including a financial analysis of the project and recommendations for further development. SRK expect to complete their study early in 2007, together with reports on the environmental impact of the project.

The component studies to date have confirmed that all aspects of the 25,000 tonnes per day open pit project proposed by InterMoly are technically viable for a year-round operation. The feed grade to the process plant during the initial six years of mine operation is estimated at 0.249% MoS₂ (0.15% Mo). As this project is a primary molybdenum deposit, processing will result in a high-grade (54 - 56% Mo) concentrate with a low impurity content that is very desirable for steelmaking. A suitable site for the process plant, infrastructure and tailings facility has been identified 12 kilometres downhill from the mine, with the tailings facility being located immediately adjacent to the plant site. Following the construction of a starter dam with borrow material, the majority of the tailings dam will be constructed from the sand fraction of the tailings. Approximately 20,000 tonnes per year of concentrate will be produced by the mine and will be taken 75 kilometres along a haul road constructed over gentle terrain to a port facility for shipment to markets.

As the present studies were being completed, various opportunities for optimisation of the overall project were identified. These include the use of a conveyor system to replace truck haulage from the mine to the plant and high pressure roll crushers in place of the SAG mill. These changes and others that have been identified have the potential to have a significant positive impact on the project economics and construction schedule and will be examined by SRK during completion of the PFS as project opportunities.

Morris Beattie, CEO of InterMoly, commented: "The past year has been very satisfying as the project concepts have been developed and progressed. We are looking forward to completion of the PFS early next year and to advancing the project to a definitive feasibility stage."

For further information please contact:

International Molybdenum plc +1 604 644 8244

Morris Beattie

Parkgreen Communications Ltd +44 20 7851 7480
Cathy Malins / Annabel Leather

Matrix Corporate Capital Limited +44 20 7925 3393

Stephen Mischler