Victory West Moly Limited (ASX:VWM) Indonesian Corporate Operations Update

Perth, July 20, 2010 AEST (ABN Newswire) - Victory West Moly Limited ("VWM" or the "Company") (ASX:VWM) (Frankfurt:R1E) is pleased to provide the following Indonesian Corporate update.

Foreign Investor Company Conversion

To date, the Company has controlled their molybdenum assets via a raft of binding contractual agreements and managed its Indonesian operations through its management services company PT Sulawesi Molybdenum Management ("PTSMM").

In continuing the Company's strategy of ensuring its Indonesian assets are optimally structured, the Company is in the process of converting their 5 controlled molybdenum concession companies: PT Inti Cemerlang, PT Promistis, PT Era Moreco, PT Sembilan Sumber Mas and PT Indo Surya (collectively the -Moly Companies-) into Indonesian foreign investment companies (-PMA Companies-) which allows greater flexibility and transparency for foreign ownership.

Upon completion, the Company (through its subsidiaries) will now be able to acquire shares in the Moly Companies thus moving to a direct interest in these companies. A Singaporean Holding Company (Victory West Moly (Singapore) Pte Ltd) has been incorporated to hold a direct interest in the Moly Companies once they are converted to PMA companies. As part of this process, the Company's local BUMD (Regency owned enterprise) partner (or their nominee) will be issued a 5% direct interest in each of the Moly Companies.

Documents to initiate the conversion are currently being lodged with the Investment Coordinating Board (Badan Koordinasi Penanaman Modal or "BKPM"). Following the issuance of the Investment Registration approval by BKPM, the Company will seek the mandatory approval of the Ministry of Law and Human Rights Approval ("MoLHR Approval"). Upon obtaining MoLHR approval the company is recognised as a PMA Company. It is expected this process will be completed within 1-2 months. In addition to allowing the Company to obtain a direct interest in the Moly Companies through the conversion of these companies to PMA companies, it also provides greater operational flexibility making these companies joint venture and investment ready.

Inti Cemerlang & Promistis - Production & Operation (Exploitation) IUP Licenses

As previously announced the the company has converted their KP Exploration permits to Exploration IUP concessions as provided under the new mining law in Indonesia. The Company was one of the first resource companies in the Sulawesi region to do so.

The Company is pleased to announce that the application process to convert the Inti Cemerlang and Promistis Exploration IUP concession licenses to Production and Operation (Exploitation) IUP's is underway.

Under Indonesia's new mining laws, IUP's are granted in two stages, namely the Exploration IUP and the Operation & Production IUP. Under the old mining Law an Exploration KP was granted for 3 (three) years, followed by an Exploitation KP for 30 (thirty) years. The Exploration IUP for metal minerals may be granted for the maximum period of 8 (eight) years and the subsequent Production Operation IUP can be granted for 20 (twenty) years, extendable for a further 2 (two), 10 (ten) year periods.

The company (via PTSMM) has engaged experienced local consulting groups to undertake the required feasibility and environmental (AMDAL) studies. It expects these studies will take approximately 4-6 weeks to complete, upon which the formal application process will begin.

This is a very important strategic step, as it provides the Company with significantly longer and stronger tenure making it increasingly attractive for further investment.

For the complete Victory West Moly Limited announcement including Group
Structure Figures, please view the following link:

http://www.abnnewswire.net/media/en/docs/63339-ASX-VWM-498015.pdf

Contact

Robert Hyndes Chief Executive Officer Victory West Moly Limited www.victorywestmoly.com.au TEL: +61-8-9381-5819 FAX: +61-8-9388-3701