The New Landscape for Rare Earth Permanent Magnets

1. The New Landscape for Rare Earth Permanent Magnets U.S.-Sourced Feedstock Secure Supply Chains Long-Term Price Visibility Less Reliance on “Heavy” Rare Earths

2. Safe Harbor Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements represent Molycorp's beliefs, projections and predictions about future events or Molycorp's future performance. 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: the potential need to secure additional capital to implement Molycorp's business plans, and Molycorp's ability to successfully secure any such capital; Molycorp's ability to complete its planned capital projects, such as its modernization and expansion efforts, including the achievement of an initial run rate of 19,050 metric tons at its Mountain Pass, California rare earth mine and processing facility (the “Molycorp Mountain Pass facility”), and reach full planned production rates for REO and other planned downstream products, in each case within the projected time frame; the success of Molycorp's cost mitigation efforts in connection with its modernization and expansion efforts at the Molycorp Mountain Pass facility, which, if unsuccessful, might cause its costs to exceed budget; the final costs of Molycorp's planned capital projects, which may differ from estimated costs; Molycorp's ability to achieve fully the strategic and financial objectives related to the acquisition of Neo Material Technologies, Inc. (now Molycorp Canada), including the acquisition's impact on Molycorp's financial condition and results of operations; foreign exchange rate fluctuations; the development and commercialization of new products; risks and uncertainties associated with intangible assets, including any future goodwill impairment charges; unexpected actions of domestic and foreign governments; various events that could disrupt operations, including natural events and other risks; uncertainties associated with Molycorp's reserve estimates and non-reserve deposit information, including estimated mine life and annual production; uncertainties related to feasibility studies that provide estimates of expected or anticipated costs, expenditures and economic returns, REO prices, production costs and other expenses for operations, which are subject to fluctuation; uncertainties regarding global supply and demand for rare earths materials; uncertainties regarding the results of Molycorp's exploratory drilling programs; Molycorp's ability to enter into additional definitive agreements with its customers and its ability to maintain customer relationships; Molycorp's sintered neodymium-iron-boron rare earth magnet joint venture's ability to successfully manufacture magnets within its expected timeframe; Molycorp's ability to maintain appropriate relations with unions and employees; Molycorp's ability to successfully implement its vertical integration 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; and the outcome of stockholder class action litigation, derivative litigation and a pending SEC investigation, including any actions taken by government agencies in connection therewith. 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, 2012. Any forward-looking statement contained in this presentation 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 materially from those anticipated in these forward-looking statements, even if new information becomes available in the future, except as otherwise required by applicable law.

3. Main Points 1 In the past two years, rare earth price volatility, lack of supply security, and concerns over “heavy” rare earth availability have discouraged manufacturers from using RE permanent magnets and encouraged them to find alternatives, which can increase energy usage and degrade performance. Demand is growing for higher efficiency motors as a result of rising energy efficiency standards and consumer demand for smaller, lighter, and more energy efficient products. Rare earth (RE) permanent magnets help reduce motor size, weight, and energy consumption to better meet these regulatory and market demands. 2 3 However, production of magnetic rare earths outside of China is now growing rapidly, which is driving greater long-term supply of RE permanent magnets. New, vertically integrated supply chains outside of China can now offer flexible entry points, security of supply, pricing visibility, and long-term contracts. 4 Additionally, engineering advances and new economic realities are bringing manufacturers back to rare earth magnets. NdFeB magnets that contain little-to-no Dysprosium (Dy) can meet or exceed the performance of traditional sintered magnets with high Dy content (8-10%) for applications that operate in higher temperature environments.

4. The Powerful Benefits of Rare Earth Permanent Magnets

5. The Power of Rare Earth Magnets in Motors By replacing Ferrite magnets in motors with: Rare Earth Permanent Magnets Power Consumption You can REDUCE: Lifecycle Costs By 10% Weight and Size Dependence on Liquid Fossil Fuels RE motor vs. Ferrite based motor Consumption of natural resources CO2and other Emissions

6. The Power of Rare Earth Magnets in Motors High-Efficiency Motors for Energy-Efficient Homes Computing & Network Technologies Aerospace Rare Earth magnets help make technologies more effective and more efficient. Clean Energy Automobiles

7. Global Energy Savings Potential of RE Magnet Motors 45% * GLOBAL POWER CONSUMPTION Percentage of global power consumption by ELECTRIC MOTORS Electric Motors 45% All Other Consumption 55% The use of can help achieve energy efficiency savings of up to RARE EARTH PERMANENT MOTORS 20% ** GLOBAL POWER CONSUMPTION * Source: 2011 International Energy Agency analysis ** Source: Mitsubishi Corporation.

8. How The Landscape For RE Magnets Has Changed in the Past Year

9. Past Challenges of Rare Earth Magnet Use Prior to 2010 Manufacturers Dissuaded from Rare Earth Magnet Use Manufactures Increasingly Designing Products with Rare Earth Magnets Limited Supply Options Low and Relatively Stable Rare Earth Prices Supply Constraints & Shortages Rare Earth Magnets Cost-to-Performance Ratio Was Steadily Improving Reliability of Rare Earth Supplies was Less of a Concern than Today C P Rare Earth Prices Highly Volatile 2010 – 2012 A Period of Increased Riskfor Magnet Users

10. 2013: Rare Earth Supply Situation is Greatly Improving 2013 Others over the long-term New Supplies Coming Online Outside China Outside Global Rare Earth Supply Landscape is Greatly Improving Lynas Less Dependence on Heavy REs (Dy) Long-Term Supply Agreements Visibility Into Pricing Security of Supply

11. Today’s State-of-the-Art:NdFeB Permanent Magnets With Little-to-No Dysprosium

12. Low-to-Zero Dysprosium NdFeB Magnets MQ2 MQ3 MQ1 • Hot-Pressed, Fully Dense Magnets • With Low-Dy Content • 2-4% “Dy advantage” over sintered NdFeB magnets • Excellent magnetic properties at temps of up to 180°C with little Dy • Made from abundant Mountain Pass, California rare earth ore • Zero-Dy Bonded Magnets • Cost-effective replacement for iron-based (ferrite) magnets • Allows for smaller/lighter motors • Helps vehicles meet higher fuel efficiency and performance standards • Made from abundant Mountain Pass, California rare earth ore • Hot-Pressed, Fully Dense Magnets • With Zero-Dy Content • Provides a 4-7% “Dy advantage” over sintered NdFeBmagnets • Excellent magnetic properties at temps of up to 200°C with zero Dy • Made from abundant Mountain Pass, California rare earth ore Typical MQ3 grade with low Dy (2%) MQ2-14-150 grade with 0% Dy PC=2, Uncoated Magnets Allows for higher efficiency Excellent thermal stability

13. Low-to-Zero Dysprosium NdFeB Magnets • MQ magnets (MQ1, MQ2, and MQ3) fill the gap between fully dense anisotropic sintered neo magnets and sintered ferrite magnets • MQ magnets, with only very limited exceptions, contain no heavy rare earths such as Dyor Tb.

14. Smaller grain size improves HcJ, so less Dyneeded MQ3 grain size is 20X smaller than traditional sintered NdFeB magnet MQ2 grain size is 100x smaller than traditional sintered NdFeB magnet MQ3 vs. traditional sintered (2-4% less Dy at a given temperature) MQ2 vs. traditional sintered (4-7% less Dy at a given temperature) The MQ2 and MQ3 Dysprosium (Dy) Advantage Sintered Neo MQ3 MQ2 10µm 1µm 0.5µm 1 Micrometers (m) = 1000 Nanometers (nm)

15. High-Performance, Low-Dy Sintered NdFeB Magnets • High-Performance, Low-Dy Sintered Magnets: Intermetallics Japan is now producing next-generation, high-performance sintered NdFeB magnets with 50% or less dysprosium content than traditional sintered magnets. IMJ recently has developed high-performanceDy-free sintered NdFeB magnets. • Abundant Feedstock:Magnetic rare earths are sourced from Molycorp’s world-class rare earth facility in Mountain Pass, California • Target markets: Automotive and home appliance sectors IMJ’s Next-Generation, Low-Dy Sintered NdFeB Magnets

16. Approaches to Dy-diffusion by the top Japanese Sintered Magnet Makers • Dy-vapor diffusion technique, where thin sintered magnets are thermally treated in Dy-vapor environment • Hitachi is currently running a sample evaluation program with key customers and expects full commercialization of the series with new Dy-reduction technologies in 2014. A number of different grain boundary diffusion techniques have been reported by the various Japanese sintered magnet manufacturers. • Blending Dy2O3powder with the NdFeB powder and combining the sintering and Dy-diffusing stages. • Also discussed treating Dy-coated sintered magnets. • Savings in Dy: 20-50% less Dy • Coating 1-5mm thin magnets with Dy2O3 and DyF3slurries and heating these coated magnets for 1-10 hours at 800-900oC • Savings in Dy: 60% from original • Can be found in new Nissan Leaf 2012 model Traditional method Dy Diffusion

17. How Manufacturers Today Are Using Low-to-Zero Dy Rare Earth Magnets

18. The Benefits of Using Rare Earth Permanent Magnet Motors Motors with Zero-DyMQ2 Magnets Vs. Sintered Neo Magnets w/Dy Motors with MQ1 Magnets Vs. Motors w/Ferrite Magnets Permanent Magnet Motors Vs. Induction Motors Lower Dy content leverages larger global supply of light REs • Performance • Torque Density • Fuel Efficiency • Energy Efficiency (esp. for appliances) • Greater Functionality • Energy Efficiency • Dynamic Performance • OperationalEfficiencies • ContinuousTorque • Bearing Life Higher MQ2 magnets can offer 18% lower overall material cost in a similar size and weight envelope Higher 18% Lower Lower Thermal Stability, Torque Density, Fuel & Power Efficiency • Lifecycle Costs • Size & Weight • Noise & Vibration • OperatingTemperature • Current • Ramp-up Time • Lifecycle Costs • Size and Weight • CO2 and other emissions • Energy consumption Higher Lower Noise, Vibration, Cogging Torque Induction Motor (left) versus comparable permanent magnet motor Ferrite magnet-based motor (left) versus comparable MQ1 motor

19. Design Innovation Allows Low-to-Zero Dy Magnets • High Efficiency Refrigerator Fan Motor Residential HVAC Circulation Pump Compressors for AC Systems Action:Replaced motors using ferrite magnets in refrigerator fan motor with MQ1 magnets RESULTS: • Reduce the size of the motor: height by 70% and diameter by 27% • Motor efficiency improved by 10%, resulting in 1~2% improvement in whole refrigerator system • Better design by eliminating protruded parts due to the height of motors and fans • Action:Replaced induction motor in circulation pumps with motors using MQ1 magnets RESULTS: • Helps pumps meet new energy efficiency standards • Reduces energy consumption • EU ordinance prohibits the sale of technically outmoded, inefficient pump models from 2013 onwards • Replacement is cost-effective Action:Replaced motor using sintered Neo magnets (7-8% Dy) with MQ3 (2-3% Dy) magnets RESULTS: • Performance maintained while reducing component costs with less Dy

20. Companies Utilizing NdFeB Magnets in Motors & Components Power Steering Sensor Motor AC Compressor Motor Engine Cooling Fan Motor Seat Motor Fuel Pump Motor Headlight Adjustment Motor Bicycle Dynamo Window Lift Motor

21. Companies Utilizing NdFeB Magnets in Motors & Components Ceiling Fan Refrigeration AC Motor Vacuum Cleaner

22. Companies Utilizing NdFeB Magnets in Motors & Components Hard Disk Drives Optical Disk Drives Servers Office Automation

23. Conclusions 1 Heavy rare earths are becoming less and less of an impediment to the security of supply of high-performance NdFeB magnets. Global production outside of China of magnetic rare earths is rising, and Molycorp’s integrated supply chains offer flexible entry points, security of supply, pricing visibility, and long-term contracts – inside or outside of China. 2 3 Using rare earth permanent magnets in motors, instead of ferrite magnets, delivers many powerful economic and environmental benefits to manufacturers and consumers. 4 Given that motors consume an estimated 45% of all energy generated globally, increasing motor efficiencies through rare earth permanent magnets promises many powerful environmental and energy savings benefits to the world.

24. Questions? For more information, please contact:

25. Appendix Slides

26. Global Supply & Demand Trends for Rare Earths

27. General Comments on Rare Earth Demand & Supply • With the imminent production from India, Mt. Weld, Mountain Pass and Kazakhstan the Rest of the World (ROW) should be self-sufficient in light rare earths within the next 2-4 years. • Over the past 10 years, a steady build-up of consumption and production by China has occurred. • IMCOA’s view is that, given adequate and reasonably priced supply, demand for rare earth magnets will grow at 10-15%pa, once we are over the vicissitudes of the Global Financial Crisis. • Recent communications with phosphor producers and consumers indicates that the impact of more efficient phosphors and the use of LEDs are definitely having an impact on the growth in demand; in fact demand could contract. • The forecast demand for rare earths in 2016 has been marginally reduced to 160,000 mtREO. • Now that the price of cerium has returned to more normal levels the demand for polishing powders for ‘tablets’ (and other devices with touch screens) is significant and is impacting on demand positively. • The very high price of dysprosium and the uncertainties surrounding future security of supply have resulted in major efforts to reduce or eliminate its use, which have been successful to a significant extent.

28. The Major Development in China Likely to Impact on Supply and Demand for Rare Earths: The Consolidation and Vertical Integration of the Industry IMCOA is of the view that the increased activity and legislation aimed at consolidating and facilitating vertical integration in the industry in China will be a major factor in the future development of the rare earths industry globally. How is this being achieved: • Allocating the production and export quotas to fewer companies. • In most cases, selecting State Owned Enterprises (SOEs) as the ‘new leaders’ of the rare earths industry as they are easier to control and have the required access to funds for development. • Establishing rare earth stockpiles to ensure stability of supply, while supporting those companies in difficulty; effectively using it as a price control/stabilising mechanism. • Enforcing environmental legislation; thereby forcing the less efficient enterprises out of business. • Vertical integration is being encouraged and facilitated by the Authorities (e.g. in Baotou and in South China). • Investing in research to ensure that the Chinese industry is at the forefront of global rare earths technology. The net effect: • Increasing quantities of rare earths will be consumed by Chinese domestic value-adding enterprises; thereby reducing the quantity available for export – particularly heavy rare earths. China’s share of demand could increase. • Co-ordination of pricing will be easier with fewer enterprises. • It will be difficult for the WTO to mount a case with respect to quotas if most of the scarce resources are processed in China, with the rare earths available to ROW (and China) in the form of added value products, rather than rare earth oxides, metals and chemicals.

29. Heavy Rare Earths Supply The situation with respect to the sustainable long term supply of heavy rare earths remains uncertain: • In 2008 both the China Rare Earths Society and IMCOA highlighted a potential shortfall in heavy rare earths supply within 10-15 years. China has not published the size, grade and rate of mining at its rare earths mines for many years; making a comprehensive assessment of reserves more guesswork than calculation. • No new sources of heavy rare earths have been brought on-line since that time. • Due to the higher prices of the heavy rare earths most of the illegal mining and processing of rare earths in China has been focused on the ‘heavies’ – hence the depletion of the finite resources may be greater than thought a few years ago. These activities are now the focus of the major effort by the Chinese authorities to stamp it out – including the death penalty. • With the exception of the Dubbo Project (Alkane Resources) IMCOA is of the view that there is no certainty that there will be any other ROW heavy rare earths project on-line within the next 4 years. No other project has a proven reserve and a proven process (on a demonstration scale) and advanced environmental assessment/approval and off-take agreements/MOUs in place. • It remains possible that China will ration the production/supply of heavy rare earths, with a preference for supply to local enterprises. • However, there is no doubt that China possess significant potential for discovering additional heavy rare earths resources/reserves.

30. Rare Earths Supply & Demand Source: IMCOA and discussions with Rare Earths Industry Stakeholders

31. Global Rare Earths Supply and Demand(2005-2020)

32. Global Rare Earths Supply and Demand by Application: 2016 & 2020(Note * In the view of IMCOA phosphor demand in 2016 may well be 8,000 to 8,500t REO)

33. Forecast Global Demand and Supply for Individual Rare Earths in 2016 (±20%)(Note * In the view of IMCOA phosphor demand in 2016 may well be 8,000 to 8,500t REO)

34. About Molycorp

35. Molycorp At A Glance

36. Business Overview by Segment • Resources Segment • Products:Rare earth oxides (REO), rare earth feedstock for downstream facilities, SorbX™ • Facility: Mountain Pass, California • Chemicals & Oxides Segment • Products: Custom engineered, RE advanced materials • Facilities:Silmet - Sillamae, Estonia, Zibo, China (ZAMR), and Jiangyin, China (JAMR) • Magnetic Materials & Alloys Segment • Products: RE alloys, magnetic powders and magnets • Facilities: Magnequench - China, Thailand; MMA (Arizona) • Rare Metals Segment • Products: Rare metals (e.g. tantalum, niobium) • Facility:Silmet - Sillamae, Estonia 12,000(REO basis) 9,250 (Magnetic alloy basis) 19,050(REO basis)

37. Our Global Footprint Sagard, Germany (Joint Venture with Buss & Buss SpezialmetalleGmbH) Toronto,Canada Abingdon, U.K. Our Global Footprint Napanee,Canada Sillamäe, Estonia Stade, Germany Peterborough, Canada Tianjin, China Corporate Headquarters, Greenwood VillageColorado Hyeongok, South Korea Mountain Pass, California Nakatsugawa, Japan (Joint venture with Daido Steel & Mitsubishi Corp.) Barbados Tolleson,Arizona LEGEND Jiangyin, Jiangsu Province, China Rare Earth Resource Production Facilities Research & Development Administrative Offices Corporate Headquarters Blanding, Utah Singapore Korat, Thailand Zibo, Shandong Province, China Quapaw, Okla. SALES & LIAISON OFFICES • Abingdon, U.K. • Beijing, China • Indianapolis, Indiana • Osaka, Japan • Peterborough, Canada • Sagard, Germany (JV with Buss & Buss SpezialmetalleGmbH) • Seoul, South Korea • Singapore • Tokyo, Japan • Toronto, Canada • Turbingen, Germany

38. Diverse, Vertically Integrated Supply Chains HREE REO Separation LREE REO Separation Value-Added Supply Chain OUTSIDE China HREE Facility Expected 2013/14 Location outside China TBA Mountain Pass (Calif.) Silmet (Estonia) Mining & Production of Concentrate Magnetic Materials Metal / Alloy Production Tolleson (Arizona) Silmet (Estonia) Tolling Companies Korat (Thailand) Intermetallic Japan Mountain Pass, California CUSTOMERS WORLDWIDE Products sold directly from Mountain Pass LREE REO Separation Magnetic Materials Value-Added Supply Chain INSIDE China Zibo, China Tianjin, China Supply Chain INSIDE China HREE REO Separation Jiangyin, China 38

39. Downstream Markets: Value-Added Gallium Product Application • Mainly smartphone/tablets • Also Amber, Red LEDs 6-7NGa Wireless (GaAs) • General Lighting GaCl3 White LED NEW • PLASMA TV • LED Lighting applications also • under development Ga2O3 PHOSPHOR NEW • New technology • High Definition, low power consumption • Q4’12: Sharp has launched displays. Ga2O3 IGZO DISPLAYS

40. Dy Diffusion Technologies

41. Dy-diffusion slides The use of Dy has been essential for heat resistant NdFeB magnets. However, the Dy resource and supply is limited. Therefore, sintered magnet companies have been developing more effective ways to use the Dy since the mid 2000s. The coercivity and heat resistance of a magnet can be improved by either modifying the microstructure or increasing the magnetocryalline anisotropy of the material. “In spite of new technologies and new product designs aimed at reducing Dysprosium requirements, Dy will certainly continue to be in short supply.  As a result, Hitachi and Shin-Etsu will likely enjoy continued growth for their Dy-diffusion magnets.” Ref. Walt Benecki Magnetics 2013 The former can be achieved by creating finer grain structures (like in MQ2), as well as generating a more uniform envelop of non-magnetic material around each grain (hindering domain movement).

42. Reducing Dy in Magnets Through Diffusion Traditionally, the Dy Diffusion process consists of: • Preparing an alloy in appropriate amount • Sintering at >1000oC • A Dy source for diffusion is applied to the surface of a sintered NdFeB substrate • Usually vapor or liquid • Heat is applied (relatively lower than traditional method) • Dy uniformly gathers at the periphery of the crystalline particles (does not diffuse into the interior of the crystalline particles) Dy distribution mapping in NdFeB magnet by Electron Probe Micro Analyzer (Photo courtesy of Hitachi)

43. TDK Dy Diffusion Activity • Remanentmagnetic flux density has been improved by 3-5% and uses 20-50% less Dy, depending on magnet dimensions. • TDK's HAL (High-Anisotropy field Layer) process diffuses Dyto grain boundary regions and improves performance. Dy2O3 powders was blended with 30Nd-1.1B-0.2Al-0.1Cu-bal.Fe and sintered. T. HIDAKA, C. ISHIZAKA, M. HOSAKO Ferrite and Magnet Products Business Group, TDK Corp., Japan REPM’10 - Proceedings of the 21st Workshop on Rare-Earth Permanent Magnets and their Applications p100 http://www.tdk.co.jp/techjournal_e/vol08_hal/contents05.htm

44. Hitachi’s Dy Diffusion technology • Hitachi continues to promote the Ulvac type Dy-diffusion technology. This involves heat treating thin sintered magnets in a vapor of Dy for 1-3 hours. (However they have also looked into diffusing DyF3 into the surfaces of magnets more recently.) • Magnets can maintain the same remanencewhile increasing intrinsic coercivity by 320kA/m (4kOe). • In fact the Br can be increased by 400G and above while preserving Hci equal to that of existing products, depending on process conditions, size and shape of a magnet. http://www.hitachi-metals.co.jp/e/eh2009/p04.html Yutaka Matsuura, April 2011

45. Patents associated with Dy Diffusion