Moly Mines : Chairman`s Letter and Notice of AGM

4 May 2017‌

Dear Shareholders,

Please find enclosed a Notice of Meeting and Proxy Form for Moly Mines Ltd's ("Moly" or "the Company") Annual General Meeting.

The Company's Annual General Meeting will be held at 11.30am EST on Monday, 29 May 2017 at the offices of Computershare, Level 4, 60 Carrington Street, Sydney, NSW, 2000.

As announced on 21 April 2017, the Company ceased to be listed on the Australian Securities Exchange (ASX) on 22 April 2017. The Board has undertaken to significantly reduce administration costs and overheads post the delisting. I am pleased to advise that these cost saving initiatives are well underway.

We intend to relocate the head office of Moly, including all accounting and administration functions, to a shared services office in Sydney in the coming months. In addition, our Chief Financial Officer Mr Ric Vittino will be leaving the company effective 1 July 2017.

The Board has also decided to make certain changes to the management structure of the Company in an effort to bring the Company more into line with its current scale of operations and to reduce overall costs. These changes include the Board deciding that there will no longer be a need for Mr Graeme Kininmonth to continue in his role as Acting CEO of the Company beyond 1 July 2017. Given the current scale of the Company's operations, after 1 July 2017 work duties currently undertaken by the Acting CEO will instead be undertaken by the Board, the Company Secretary and external consultants and contractors (as and when required).

I would like to take this opportunity to thank Graeme and Ric for their dedication and hard work, particularly over the recent challenging times. I know you will join me in wishing them every success in the future.

Moly's Board continues to assess our options including pursuing project opportunities that we believe can add value for all our shareholders. We will also consider listing on exchanges that will provide an open market for shareholders to buy and sell shares.

We will continue to communicate with shareholders on a regular basis and all announcements will be posted on the Moly website (www.molymines.com). We encourage you to subscribe to our email list which you can do via the homepage on the Company's website. We have included a Frequently Asked Questions sheet with this mail package which we hope will assist you in answering any questions you may have following the recent delisting of the Company.

The Board of Moly appreciates your continued support and patience and we look forward to keeping you updated on our progress.

Yours faithfully

Nelson Chen Chairman

46-50 Kings Park Road, West Perth

Western Australia 6005

PO Box 8215, Subiaco East Western Australia 6008

Telephone +61 8 9429 3300

Facsimile +61 8 9429 3399

Email info@molymines.com ABN 32 103 295 521

Moly Mines Limited ("the Company") was delisted from the Australian Securities Exchange as at close of trade 21 April 2017 ("the Delisting Date") and has become an unlisted public company. Each shareholder retains their existing fully paid ordinary shares in the Company which will have the same voting rights and entitlements as prior to delisting. Each shareholder will receive a share certificate in the mail post delisting.

The Company will continue to communicate with shareholders on a regular basis and all announcements will be posted on the Moly Mines Ltd website (www.molymines.com). Moly remains a Reporting Issuer in Canada and as such, all material information will continue to be released to the market in North America and filed on SEDAR.

We encourage all shareholders to subscribe to our email list which you can do via the homepage on the Company's website.

As the Company's shares were quoted on ASX, you held your shares in uncertificated form. After the Delisting Date, your shareholding in the Company - whether CHESS sponsored or issuer sponsored - will be automatically converted into certificated form on the Company's Australian share register, and a share certificate will be posted to your registered address. You are not required to do or pay anything to facilitate this.

If you lose your share certificate, you will need to complete a Certificate Replacement Request Form and send it to Computershare for processing.

The Certificate Replacement Request Form can be downloaded from Computershare's Investor Centre Website under the Printable Forms link at www.investorcentre.com or a copy of the Form is also available on the Company's website.

The only process for selling your unlisted stock is to locate a willing buyer and transfer the stock via an Off-Market Transfer.

The Transfer Form can be downloaded from Computershare's Investor Centre Website under the Printable Forms link at www.investorcentre.com or a copy of the Form is also available on the Company's website.

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You will still be able to view/update your holding details through Computershare's Investor Centre website at www.investorcentre.com. You will need your holder number which can be located on the right hand side of your share certificate.

For any further information regarding your shareholding in the Company, you can contact the share registry Computershare on 1300 850 505 (within Australia) or +61 3 9415 4000 (Overseas), Monday to Friday 8am to 7pm AEST.

Following delisting, you can change your address through Computershare's Investor Centre website at www.investorcentre.com.

Alternatively, you can complete a Change of Address Form and mail to this to Computershare for processing. The Change of Address Form, including information on how to complete the form and where to mail it, is available on the Company's website.