Moly Mines Agrees to Gold Assets Sale to Cortona Resources

Sydney, Feb 9, 2007 AEST (ABN Newswire) - Moly Mines Limited (ASX: MOL) is pleased to announce it has entered into a binding agreement with Cortona Resources Limited to sell its New South Wales Gold Assets in a cash, script and royalty deal that will see Moly Mines receive a major cash injection and also become Cortona's major shareholder.

As a result of this transaction, Moly Mines' focus will be strictly on the metal molybdenum and its associate copper, whilst at the same time retaining significant exposure to gold through the Cortona shareholding.

Key Terms

Under the terms of the agreement, Moly Mines will sell all its shares in its 100% owned subsidiary, Big Island Mining Limited (the owner of the New South Wales Gold Assets) to Cortona for:

- $5 million cash;

- 12 million fully paid ordinary shares in Cortona;

- 8 million options in Cortona exercisable at $0.35, expiring 2 years from the date of issue; and

- A further 8 million options, exercisable at $0.50 (Royalty Options).

The Royalty Options do not vest until either the successful delineation of a total of 1 million ounces of measured and / or indicated resource (in accordance with the requirements of the JORC code) from the New South Wales Gold Assets OR a decision to mine is made on any of the New South Wales Gold Assets.

In addition, on achievement on either of these royalty milestones, Moly Mines will receive a $4 million cash payment.

Prior to going into a trading halt on Wednesday 7 th February, Cortona's 5 day weighted average share price was approximately $0.25.

This binding agreement is subject to the satisfaction of various conditions precedent which include due diligence by both Moly and Cortona, the receipt of all necessary shareholder and regulatory approvals and a capital raising for Cortona to fund the $5 million cash consideration to Moly Mines.

Settlement will occur within 5 business days of conditions precedent being satisfied (Settlement Date) with all arrangements expected to be concluded by 31 May 2007.

The Royalty Options will be issued at the Settlement Date noted above but will be held in escrow until they vest through the achievement of either royalty milestone. The Royalty Options will expire 5 years from the date of issue.

The sale of the New South Wales Gold Assets will concentrate Moly Mines' focus on the 100% owned Spinifex Ridge Molybdenum Project in the Pilbara of Western Australia where it is completing a full feasibility study for a proposed 15 million tonne per annum mining operation. Through Cortona, Moly Mines not only retains exposure to its former New South Wales Gold Assets but also exposure to Cortona's exciting development strategy for the North Monger projects, south east of Kalgoorlie in Western Australia, where Cortona has met with considerable exploration success in its 10 months of exploration to date.