Moly Mines Announce 200% Upgrade of Measured Copper Resource at Spinifex Ridge

Perth, July 26, 2006 AEST (ABN Newswire) - Moly Mines Limited (ASX: MOL) is pleased to announce a further major upgrade to the resource at the Spinifex Ridge Molybdenum/Copper Project, located in the Pilbara region of Western Australia. The Company's recently completed, 15 month drilling campaign has now converted a significant portion of the resource into the Measured category under the JORC Code, sufficient for the Company to consider the resource to be at a bankable level.

The Measured resource has increased from 61 million tonnes to 187 million tonnes, a 200% increase as detailed below.

The new JORC compliant resource using a 0.03% Mo cut-off is 500 million tonnes @ 0.06% Mo and 0.09% Cu. This represents a near doubling of the resource of 281 million tonnes as it stood prior to the commencement Moly Mines' drilling program in April 2005. The deposit remains open at depth.

A breakdown of the new resource is as follows:

- Measured - 187 million tonnes @ 0.07% Mo and 0.10% Cu;- Indicated - 282 million tonnes @ 0.05% Mo and 0.08% Cu; and- Inferred - 31 million tonnes @ 0.05% Mo and 0.07% Cu.

The upgraded resource confirms the project's status as an advanced world class molybdenum project and is a significant milestone in the Bankable Feasibility Study ("BFS"). The completion of resource drilling allows the Company to commence detailed mine planning with optimised pit designs.

This new resource has been independently calculated by engineering and mining consultants Steffen Robertson & Kirsten (Australasia) Pty Ltd ("SRK") using a database containing 137 holes for 44,718 metres, including the 99 holes drilled by Moly Mines. Data has been verified and twin holes were used to confirm the compatibility of historical data with holes undertaken by Moly Mines.

Spinifex Ridge now has a significant resource inventory of:

- Molybdenum - 280,000+ tonnes (~620 million pounds)- Copper - 430,000 tonnes (~950 million pounds)- Silver - 850 tonnes (~29 million ounces)

The initial 10 year starter pit, designed in the Pre-feasibility Study ("PFS"), captures 160 million tonnes of this resource, of which 108 million tonnes are in the Measured category. This is sufficient for the first 7 years of full production at the planned 15 million tpa mining rate being examined in the BFS. The Project is expected to benefit from the relative simplicity of an open-pit mine design and "off-the-shelf" flotation processing technology that has been in use in molybdenum processing facilities for over 80 years.

The Capital Reduction Program announced in June is on going and is meeting with considerable success. An update on the progress of that program will be provided in the upcoming Quarterly Activities Report. World molybdenum prices continue to show resilience, with molybdenum (as oxide) trading in the US$23 to US$26 per pound range for the last 6 months. Current spot prices are Mo: US$25.00/Ib, Cu: US$3.20+ and Ag: US$11/oz compared to the PFS pricing assumptions of US$12.50/lb, US$1.10/lb and US$5.75/oz respectively.

Spinifex Ridge Molybdenum Resource Estimate, 0.03% Mo Cut-off----------------------------------------------------------------------Class.    Tonnes       Mo(%) Contained  Cu(%) Contained Ag(g/t) Contained                            Mo (tonnes)     Cu (tonnes)         Ag (oz)Measured  187,437,000  0.07  131,206   0.10  187,437     1.8   10,847,000Indicated 281,802,000  0.05  140,901   0.08  225,442     1.7   15,402,000Inferred   30,685,000  0.05   15,343   0.07   21,270     1.6    1,578,000----------------------------------------------------------------------Total     499,924,000  0.06  287,450   0.09  434,149     1.7   28,727,000----------------------------------------------------------------------

Notes
Resource wire-framed using sectional information
- 137 holes and 5,370 assay composites used with data composited into 5m downhole lengths
- Leapfrog software to generate grade domains
- Block model constructed with 50m x 50m x 5m blocks
- Block grades estimated using Ordinary Kriging
- The indication of contained molybdenum, copper and silver in the table above is included for ease of reference but is not intended to suggest that actual recoveries of minerals would be in such amounts. Recovery rates of approximately 80-85% of contained molybdenum and 50-55% of contained copper may be expected from the processing methods under consideration by the Company.