Ann: Company Update , page-16

The loans been approved bar 34mil.Even with the recent debt to equity rebalancing requirements in the Chinese banking sector.Could be the higher interest.





3rd December 2010
ASX Limited
Exchange Plaza
2 The Esplanade
Perth, WA 6000
SPINIFEX RIDGE MOLYBDENUM/COPPER PROJECT FINANCING � NDRC APPROVAL
Moly Mines Limited (ASX/TSX: MOL) is pleased to announce that the immediate parent entity of Hanlong Mining Investment Pty Ltd (�Hanlong�) has received the key Chinese government approval in the process toward completing the financing for the Spinifex Ridge Molybdenum/Copper Project (�Project�).
The National Development and Reform Commission (�NDRC�) of the People�s Republic of China has confirmed its permission for Chinese funding to be allocated to the development and construction of the 10 million tonne per annum Project.
Moly Mines CEO/Managing Director Dr Derek Fisher commented, �NDRC approval is the critical government approval required for any major overseas investment by a Chinese organization. It now allows our banking syndicate to finalise the negotiation of the term sheet for the financing of the molybdenum/copper project. This important milestone caps a momentous week for the Company, the week during which we also commenced production of iron ore at Spinifex Ridge.�
Pursuant to the Subscription Agreement dated 19 October 2009, as amended, Moly Mines� major shareholder Hanlong has committed to arranging US$500 million in project financing for the construction of the Project by 31 January 2011.
Hanlong�s immediate parent entity, Sichuan Hanlong High Technology Development Co, sought and has now received NDRC approval to support the commitment of Hanlong. The approval is for an amount of US$466 million, to be provided in the form of Chinese bank loans. The balance of funding is currently being sourced by Hanlong.