**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**




**FORM
      10-QSB/A**




**Amendment
      #1**




x
            
            **QUARTERLY
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934****For
                the quarterly period ended June 30, 2007**o
            
            **TRANSITION
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934**




**For
      the transition period from ________ to ________**




**General
      Moly, Inc.**


(Name
      of
      small business issuer in its charter)




**DELAWARE**
            
            **001-32986**
            
            **91-0232000**(State
                or other jurisdiction
            
            Commission
                File Number
            
            (I.R.S.
                Employerof
                incorporation or organization)
            
            
            
            Identification
                No.)




**1726
      Cole Blvd., Suite 115**


**Lakewood,
      CO 80401**


**Telephone:
      (303) 928-8599**


(Address
      and telephone number of principal executive offices)




Idaho
      General Mines, Inc.


10
      North
      Post St., Suite 610


Spokane,
      WA 99201


(Former
      name, former address and former fiscal year, if changed since last
      report)





Check
      whether the issuer (1) filed all reports required to be filed by
      Section 13 or 15(d) of the Exchange Act during the past 12 months (or
      for such shorter period that the registrant was required to file such reports),
      and (2) has been subject to such filing requirements for at least the past
      90 days. **YES x** **NO o**




Indicate
      by check mark whether the registrant is a shell company (as defined in
      Rule 12b-2 of the Exchange Act). **YES x   
**NO o****




The
      number of shares outstanding of registrant’s common stock as of August 3,
      2007 was 56,334,005.




Transitional
      Small Business Disclosure Format (check one): **YES o   
**NO x****





**EXPLANATORY
      NOTE**





This
      Amendment No. 1 on Form 10-QSB/A (this “Amendment”) amends and restates items
      identified below with respect to the Form 10-QSB filed by General Moly, Inc.
      (formerly “Idaho General Mines, Inc.”) (“we” or the “Company”) for the period
      ended June 30, 2007 with the Securities and Exchange Commission (the “SEC”) on
      August 7, 2007 (the “Original Filing”). The purpose of this Amendment is to
      amend and restate the previously issued financial statements included in the
      Original Filing for the reasons described in Note 2 to the financial statements
      included in Item 1 (Financial Statements) herein. Other than as set forth below,
      the items of the Original Filing continue to speak as of the date of the
      original filing date thereof, and the disclosure relating to such items is
      not
      being updated.





This
      Amendment amends and restates the information in Item 1 (Financial Statements)
      and Item 2 (Management’s Discussion and Analysis of Operation) of the Original
      Filing. Except for the foregoing amended and restated information and the
      information set forth below under the heading “Subsequent Event,” this Amendment
      continues to describe conditions as of the date of the Original Filing, and
      the
      disclosures contained herein have not been updated to reflect events, results
      or
      developments that have occurred after the date of the Original Filing, or to
      modify or update those disclosures affected by subsequent events. Among other
      things, forward-looking statements made in the Original Filing have not been
      revised to reflect events, results or developments that have occurred or facts
      that have become known to us after the date of the Original Filing, and such
      forward-looking statements should be read in their historical context. This
      Amendment should be read in conjunction with the Company’s filings made with the
      SEC subsequent to the Original Filing, including any amendments to those
      filings.




***Subsequent
      Event***





On
      October 8, 2007, we reincorporated the Company in the State of Delaware (the
      “Reincorporation”) through a merger involving Idaho General Mines, Inc. and
      General Moly, Inc., a newly-formed Delaware corporation that was a wholly owned
      subsidiary of Idaho General Mines, Inc. The Reincorporation was effected by
      merging Idaho General Mines, Inc. with and into General Moly, with General
      Moly
      being the surviving entity. In connection with the Reincorporation, all of
      the
      outstanding securities of Idaho General Mines, Inc. were converted into
      securities of General Moly on a one-for-one basis. For purposes of the Company’s
      reporting status with the Securities and Exchange Commission, General Moly
      is
      deemed a successor to Idaho General Mines, Inc.


-2-


**PART
      I**


**FINANCIAL
      INFORMATION**




**ITEM
      1.**  **FINANCIAL
      STATEMENTS**




**GENERAL
      MOLY, INC.**


**(AN
      EXPLORATION STAGE COMPANY)**


**CONDENSED
      CONSOLIDATED BALANCE SHEETS**


**(Unaudited
      - In thousands except per share amounts)**


**(Restated
      - Note 2)**






**At**
              **June
                30**
              **2007**
            
            **At**
              **December
                31,**
              **2006****ASSETS:**CURRENT
                ASSETSCash
                and cash equivalents
            
            $
            27,537
            
            $
            17,882Deposits
            
            
            238
            
            
            147Prepaid
                expense and other assets
            
            
            106
            
            
            46Total
                Current Assets
            
            
            27,881
            
            
            18,075Mining
                properties, land and water rights
            
            
            17,671
            
            
            8,598Property
                and equipment, net
            
            
            835
            
            
            431Restricted
                cash held for reclamation bonds
            
            
            575
            
            
            —TOTAL
                ASSETS
            
            $
            46,962
            
            $
            27,104**LIABILITIES
                AND STOCKHOLDERS’ EQUITY**CURRENT
                LIABILITIESAccounts
                payable and accrued liabilities
            
            $
            3,101
            
            $
            1,076Provision
                for post closure reclamation and remediation costs
            
            
            105
            
            
            —Current
                portion of long term debt
            
            
            39
            
            
            19Total
                Current Liabilities
            
            
            3,245
            
            
            1,095Provision
                for post closure reclamation and remediation costs, net of current
                portion
            
            
            324
            
            
            —Long
                term debt, net of current portion
            
            
            87
            
            
            58Total
                Liabilities
            
            
            3,656
            
            
            1,153STOCKHOLDERS’
                EQUITYPreferred
                stock, Series A, $0.001 par value; 10,000,000 shares authorized,
                no shares
                issued and outstanding
            
            
            —
            
            
            —Common
                stock, $0.001 par value; 200,000,000 shares authorized, 54,959,000
                and
                43,398,000 shares issued and outstanding, respectively
            
            
            55
            
            
            43Additional
                paid-in capital
            
            
            81,919
            
            
            46,017Accumulated
                deficit before exploration stage
            
            
            (213
            )
            
            (213
            )Accumulated
                deficit during exploration stage
            
            
            (38,455
            )
            
            (19,896
            )Total
                Stockholders’ Equity
            
            
            43,306
            
            
            25,951TOTAL
                LIABILITIES AND STOCKHOLDERS’ EQUITY
            
            $
            46,962
            
            $
            27,104





The
      accompanying notes are an integral part of these condensed consolidated
      financial statements.


-3-


**GENERAL
      MOLY, INC.**


**(AN
      EXPLORATION STAGE COMPANY)**


**CONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS**


**(Unaudited)**


**(In
      thousands except per share amount)**


**(Restated
      - Note 2)**




**Three
                Months Ended**
            
            **Six
                Months Ended**
            
            **January
                1, 2002**
              **(Inception
                of Exploration Stage) to June 30, 2007****June
                30, 2007**
            
            **June
                30, 2006**
            
            **June
                30, 2007**
            
            **June
                30, 2006**REVENUES
            
            $
            —
            
            $
            —
            
            $
            —
            
            $
            —
            
            $
            —OPERATING
                EXPENSES:Property
                research, exploration and development
            
            
            6,313
            
            
            1,706
            
            
            10,155
            
            
            2,976
            
            
            20,507General
                and administrative expense
            
            
            3,533
            
            
            3,247
            
            
            8,932
            
            
            4,309
            
            
            19,477TOTAL
                OPERATING EXPENSES
            
            
            9,846
            
            
            4,953
            
            
            19,087
            
            
            7,285
            
            
            39,984LOSS
                FROM OPERATIONS
            
            
            (9,846
            )
            
            (4,953
            )
            
            (19,087
            )
            
            (7,285
            )
            
            (39,984
            )OTHER
                INCOMEInterest
                and dividend income
            
            
            361
            
            
            186
            
            
            529
            
            
            330
            
            
            1,465Realized
                gains
            
            
            —
            
            
            —
            
            
            —
            
            
            —
            
            
            65TOTAL
                OTHER INCOME
            
            
            361
            
            
            186
            
            
            529
            
            
            330
            
            
            1,529LOSS
                BEFORE TAXES
            
            
            (9,485
            )
            
            (4,767
            )
            
            (18,558
            )
            
            (6,955
            )
            
            (38,455
            )INCOME
                TAXES
            
            
            —
            
            
            —
            
            
            —
            
            
            —
            
            
            —NET
                LOSS
            
            $
            (9,485
            )
            $
            (4,767
            )
            $
            (18,558
            )
            $
            (6,955
            )
            $
            (38,455
            )BASIC
                AND DILUTED NET LOSS PER SHARE OF COMMON STOCK
            
            $
            (0.18
            )
            $
            (0.12
            )
            $
            (0.38
            )
            $
            (0.21
            )WEIGHTED
                AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC
            
            
            53,642
            
            
            38,410
            
            
            48,767
            
            
            32,706FULLY
                DILUTED
            
            
            61,409
            
            
            46,191
            
            
            55,421
            
            
            41,791





The
      accompanying notes are an integral part of these condensed consolidated
      financial statements.


-4-


**GENERAL
      MOLY, INC.**


**(AN
      EXPLORATION STAGE COMPANY)**


**CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS**


**(Unaudited)**


**(In
      thousands)**


**(Restated
      - Note 2)**




**Six
                Months Ended June 30, 2007**
            
            **Six
                Months Ended June 30, 2006**
            
            **January
                1, 2002 (Inception of Exploration Stage to June 30,
                2007**CASH
                FLOWS FROM OPERATING ACTIVITIES:Net
                loss
            
            $
            (18,558
            )
            $
            (6,955
            )
            $
            (38,455
            )Adjustments
                to reconcile net loss to net cash used by operating
                activities:Services
                and expenses paid with common stock
            
            
            304
            
            
            950
            
            
            1,991Depreciation
                and amortization
            
            
            76
            
            
            14
            
            
            149Other
            
            
            —
            
            
            —
            
            
            17Equity
                compensation for management and directors
            
            
            4,519
            
            
            676
            
            
            7,829Decrease
                (increase) in restricted cash
            
            
            (84
            )
            
            —
            
            
            (84
            )Decrease
                (increase) in deposits, prepaid expenses and other
            
            
            (151
            )
            
            (146
            )
            
            (373
            )(Decrease)
                increase in accounts payable and accrued liabilities
            
            
            1,971
            
            
            (397
            )
            
            3,047(Decrease)
                increase in post closure reclamation and remediation costs
            
            
            220
            
            
            —
            
            
            220Net
                cash used by operating activities
            
            
            (11,703
            )
            
            (5,858
            )
            
            (25,659
            )CASH
                FLOWS FROM INVESTING ACTIVITIES:Payments
                for the purchase of equipment
            
            
            (480
            )
            
            (256
            )
            
            (1,179
            )Purchase
                of securities
            
            
            —
            
            
            —
            
            
            (137
            )Purchase
                of mining property, claims, options
            
            
            (8,475
            )
            
            (4,460
            )
            
            (15,941
            )Net
                increase in debt
            
            
            49
            
            
            —
            
            
            49Cash
                provided by sale of marketable securities
            
            
            —
            
            
            —
            
            
            247Net
                cash used by investing activities
            
            
            (8,906
            )
            
            (4,716
            )
            
            (16,961
            )CASH
                FLOWS FROM FINANCING ACTIVITIES:Proceeds
                from issuance of stock
            
            
            30,264
            
            
            32,719
            
            
            70,112Net
                cash provided by financing activities
            
            
            30,264
            
            
            32,719
            
            
            70,112Net
                increase (decrease) in cash and cash equivalents
            
            
            9,655
            
            
            22,145
            
            
            27,491Cash
                and cash equivalents, beginning of period
            
            
            17,882
            
            
            257
            
            
            46Cash
                and cash equivalents, end of period
            
            $
            27,537
            
            $
            22,402
            
            $
            27,537SUPPLEMENTAL
                DISCLOSURES OF CASH FLOW INFORMATION:Income
                taxes paid
            
            $
            —
            
            $
            —
            
            $
            —Interest
                paid
            
            $
            3
            
            $
            —
            
            $
            3NON-CASH
                INVESTING AND FINANCING ACTIVITIES:Common
                stock issued for equipment
            
            $
            —
            
            $
            11
            
            $
            11Common
                stock and warrants issued for property
            
            $
            826
            
            $
            —
            
            $
            1,575Restricted
                cash held for reclamation bond acquired in a business
                combination
            
            $
            491
            
            $
            —
            
            $
            491Post
                closure reclamation and remediation costs assumed in a business
                combination
            
            $
            209
            
            $
            —
            
            $
            209Accounts
                payable and accrued expenses assumed in a business
                combination
            
            $
            54
            
            $
            —
            
            $
            54





The
      accompanying notes are an integral part of these condensed consolidated
      financial statements.


-5-


**GENERAL
      MOLY, INC.**


**(AN
      EXPLORATION STAGE COMPANY)**


**NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**




**NOTE
      1—BASIS OF PRESENTATION**




General
      Moly, Inc. (“the Company” or “GMO”) is a Delaware corporation originally
      incorporated as General Mines Corporation on November 23, 1925. In 1966,
      the Company amended its articles of incorporation to change its name to Idaho
      General Petroleum and Mines Corporation, and amended its articles again in
      1967
      changing its name to Idaho General Mines, Inc. On October 8, 2007, the
      Company reincorporated in the State of Delaware (the "Reincorporation") through
      a merger involving Idaho General Mines, Inc. and General Moly, Inc., a
      newly-formed Delaware corporation that was a wholly owned subsidiary of Idaho
      General Mines, Inc. The Reincorporation was effected by merging Idaho General
      Mines, Inc. with and into General Moly, with General Moly being the surviving
      entity. For purposes of the Company’s reporting status with the Securities and
      Exchange Commission, General Moly is deemed a successor to Idaho General Mines,
      Inc.




The
      Company’s historic activities have principally consisted of the exploration for
      nonferrous and precious metals in and around Shoshone County, Idaho. The Company
      entered a new exploration stage in early January 2002 when it shifted its
      focus to minerals exploration. In May 2004, the Company began a search for
      substantive mineral properties with a focus on metals such as copper, zinc,
      silver, gold and specialty metals. GMO entered into an option to lease the
      Mount
      Hope molybdenum property located in Nevada in November 2004 and exercised
      that option in October 2005 after several phases of feasibility studies and
      project design studies which indicated the attractiveness of the project. GMO
      similarly optioned the Hall Tonopah molybdenum-copper property, also in Nevada,
      in 2005 and exercised that option to purchase the Hall Tonopah property in
      March 2006 with the intent of assessing economic feasibility by exploring
      and assessing the property’s potential. Accordingly, GMO has assumed the role of
      exploring, and as warranted, developing major mineral deposits which are at
      a
      relatively advanced stage and are worthy of economic consideration.




The
      interim Condensed Consolidated Financial Statements of the Company and its
      subsidiaries are unaudited. In the opinion of management, all adjustments and
      disclosures necessary for a fair presentation of these interim statements have
      been included. All such adjustments are, in the opinion of management, of a
      normal recurring nature. The results reported in these interim Condensed
      Consolidated Financial Statements are not necessarily indicative of the results
      that may be reported for the entire year. These interim Condensed Consolidated
      Financial Statements should be read in conjunction with GMO’s Consolidated
      Financial Statements included in its Annual Report on Form 10-KSB/A for the
      year ended December 31, 2006.




On
      January 30, 2007, the Company completed the acquisition of all of the
      issued and outstanding shares of a corporation that owned a royalty interest
      in
      our Hall-Tonopah Property (see note 6). Upon its acquisition, the
      corporation was consolidated as a wholly owned subsidiary of the
      Company.




Certain
      amounts for the three and six months ended June 30, 2006 have been
      reclassified to conform to the 2007 presentation.




**NOTE
      2 - RESTATEMENT OF PRIOR YEAR FINANCIAL STATEMENTS**




The
      Company has corrected its accounting treatment for certain non-cash adjustments
      primarily related to the calculation of and recognition of compensation expense
      and the valuation of warrants to purchase common shares of the Company under
      FASB Statement 123 - *Accounting
      for Stock-Based Compensation,* FASB
      Statement 123(R) - *Share
      Based Payment* and EITF
      96-18 - *Accounting
      for Equity Instruments That Are Issued to Other Than Employees for Acquiring,
      or
      in Connection with Selling Goods and Services* .
      The
      Company had utilized volatility assumptions which were too low in determining
      the value of certain equity instruments issued during the periods and failed
      to
      attribute value to certain warrants included as consideration in transactions
      with third parties. This resulted in the Company valuing equity instruments
      granted and/or issued at too low of a value and, accordingly, the amounts
      recorded for these non-cash transactions were understated.


-6-


Additionally
      during the periods, the Company did not account for forfeitures of employee
      options which occurred prior to vesting, resulting in an overstatement of
      non-cash compensation expense, and allocated stock-related compensation costs
      to
      the incorrect service periods. Furthermore, in the year ended December 31,
      2006,
      the Company incorrectly allocated a portion of the cash consideration paid
      for
      water rights to non marketable securities and subsequently impaired such
      securities, rather than allocating this portion of the consideration to the
      purchase of such water rights.




In
      addition, the Company has corrected certain other immaterial errors.
      At June 30, 2007 the cumulative effect of all corrections was an increase
      to the cost of our land and mining claims of $713,000, an increase in property
      research, exploration and development expense of $423,000, an increase in
      general and administration expense of $186,000, a decrease in realized loss
      on
      marketable securities of $ 321,000, and an increase to our net equity of
      $363,000.




The
      impact of these errors on each of the Company's previously issued financial
      statements, are set forth in the table below (in thousands except per share
      amounts).




**As
                Originally Reported**
            
            **As**
              **Restated**
            
            **Impact
                of the error Increase (Decrease)****Income
                Statement for the six months ended June 30, 2006**Property
                research, exploration and development expenses
            
            $
            2,816
            
            
            2,976
            
            
            160General
                and administrative expenses
            
            
            4,413
            
            
            4,309
            
            
            (104
            )Net
                loss
            
            
            6,899
            
            
            6,955
            
            
            56Basic
                and fully diluted loss per share
            
            
            .21
            
            
            .21
            
            
            -**Income
                Statement for the six months ended June 30, 2007**Property
                research, exploration and development expenses
            
            $
            10,070
            
            
            10,155
            
            
            85General
                and administrative expenses
            
            
            8,936
            
            
            8,932
            
            
            (4
            )Net
                loss
            
            
            18,477
            
            
            18,558
            
            
            81Basic
                and fully diluted loss per share
            
            
            .38
            
            
            .38
            
            
            -**Balance
                Sheet at December 31, 2006**Land
                and Mining Claims
            
            
            7,885
            
            
            8,598
            
            
            713Total
                Assets
            
            
            26,391
            
            
            27,104
            
            
            713Accrued
                Liabilities
            
            
            970
            
            
            1,095
            
            
            125Additional
                Paid in Capital
            
            
            45,221
            
            
            46,017
            
            
            796Accumulated
                Deficit
            
            
            (19,902
            )
            
            (20,109
            )
            
            (207
            )Total
                Stockholders’ Equity
            
            
            25,362
            
            
            25,951
            
            
            589**Balance
                Sheet at June 30, 2007**Land
                and Mining Claims
            
            
            16,958
            
            
            17,671
            
            
            713Total
                Assets
            
            
            46,249
            
            
            46,962
            
            
            713Accrued
                Liabilities
            
            
            2,895
            
            
            3,245
            
            
            350Additional
                Paid in Capital
            
            
            81,268
            
            
            81,919
            
            
            796Accumulated
                Deficit
            
            
            (38,380
            )
            
            (38,668
            )
            
            (288
            )Total
                Stockholders’ Equity
            
            
            42,943
            
            
            43,306
            
            
            363





**NOTE
      3-LIQUIDITY AND CAPITAL REQUIREMENTS (AND SUBSEQUENT
      EVENT)**




On
      October 4, 2007, the Company's Board of Directors approved the development
      of
      the Mount Hope Project as contemplated in the Bankable Feasibility Study. The
      development of the Mount Hope Project has an estimated total capital requirement
      of approximately $1 billion comprised of initial construction cost in excess
      of
      $850 million; $50 to $70 million in cash bonding requirements;
      $27 million in advance royalty payments; and amounts necessary for
      financing costs and working capital. Such capital requirements are management's
      best estimates based on the Bankable Feasibility Study and other available
      information, and are subject to change, which changes could be material. The
      Company will also require additional capital to continue the exploration and
      evaluation of Hall-Tonopah, as well as continue payment of ongoing general,
      administrative and operations costs associated with supporting its planned
      operations, the amounts of which are presently unknown.




-7-


The
      capital will be required through the commencement of Mount Hope production
      estimated to be in the second half of 2010. Our ability to develop the project
      on time and on budget is dependent on, among other things, our ability to raise
      the necessary capital to fund the Mount Hope Project both in sufficient quantity
      of capital and at the time such capital is needed. Additionally, if the
      estimated costs of the Mount Hope Project are exceeded we will need to raise
      additional capital to fund such overruns.




The
      Company does not currently have the capital necessary to complete the Mount
      Hope
      Project and, accordingly, plans to raise the capital on an ongoing basis when
      needed. Our current business plan and project time schedule will require the
      Company to raise approximately $200 million in capital from now through
      December 31, 2008 with $10 to $20 million of such amount required by
      December 31, 2007. If the Company is unable to raise sufficient quantities
      of
      capital when needed, it will be necessary to develop alternative plans that
      would likely delay the development and completion of the Mount Hope Project.
      There is no assurance that we will be able to obtain the necessary financing
      for
      the Mt. Hope Project on customary terms, or at all.




**NOTE** **4—SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES**




This
      summary of significant accounting policies is presented to assist in
      understanding the financial statements. The financial statements and notes
      are
      representations of the Company’s management, which is responsible for their
      integrity and objectivity. These accounting policies conform to accounting
      principles generally accepted in the United States of America and have been
      consistently applied in the preparation of the financial
      statements.




AccountingPronouncements—Recent




In
      June
      2006, the Financial Accounting Standards Board issued FASB Interpretation No.
      48, “Accounting for Uncertainty in Income Taxes an interpretation of FASB
      Statement No. 109” (hereinafter “FIN 48), which prescribes a recognition
      threshold and measurement attribute for the financial statement recognition
      and
      measurement of tax position taken or expected to be taken in a tax return.
      FIN
      48 also provides guidance on de-recognition, classification, interest and
      penalties, accounting in interim periods, disclosure and transition. FIN 48
      is
      effective for fiscal years beginning after December 15, 2006. The Company’s
      adoption of FIN 48 did not have any impact on the Company’s previously reported
      financial position, as it has no uncertain tax positions.




Cash
      andCashEquivalents




For
      the
      purposes of the statement of cash flows, the Company considers all highly liquid
      investments with original maturities of three months or less to be cash
      equivalents.




**Estimates**




The
      process of preparing financial statements in conformity with accounting
      principles generally accepted in the United States of America requires the
      use
      of estimates and assumptions regarding certain types of assets, liabilities,
      revenues, and expenses. Such estimates primarily relate to unsettled
      transactions and events as of the date of the financial statements. Accordingly,
      upon settlement, actual results may differ from estimated amounts.




-8-




ExplorationStage
      Activities




The
      Company has been in the exploration stage since January 2002 and has not
      realized any revenue from operations. It will be primarily engaged in minerals
      exploration until it enters a development or operations stage.




FairValue of
      Financial Instruments




The
      Company’s financial instruments include cash, accounts payable and accrued
      liabilities. All instruments are accounted for on a historical cost basis,
      which, due to the short maturity of these financial instruments, approximates
      fair value at June 30, 2007 and December 31, 2006.




MiningProperties, Land and Water Rights




Costs
      of
      acquiring and developing mining properties, land and water rights are
      capitalized as appropriate by project area. Exploration and related costs and
      costs to maintain mining properties, land and water rights are expensed as
      incurred. When a property reaches the production stage, the related capitalized
      costs are amortized using the units-of-production method on the basis of
      periodic estimates of ore reserves. Mining properties, land and water rights
      are
      periodically assessed for impairment of value, and any subsequent losses are
      charged to operations at the time of impairment. If a property is abandoned
      or
      sold, a gain or loss is recognized and included in operations.




**Mineral
      Exploration and Development Costs**




All
      exploration expenditures are expensed as incurred. Significant property
      acquisition payments for active exploration properties are capitalized. If
      no
      minable ore body is discovered, previously capitalized costs are expensed in
      the
      period the property is abandoned. Expenditures to develop new mines, to define
      further mineralization in existing ore bodies, and to expand the capacity of
      operating mines, are capitalized and amortized on a units-of-production basis
      over proven and probable reserves.




Should
      a
      property be abandoned, its capitalized costs are charged to operations. The
      Company charges to operations the allocable portion of capitalized costs
      attributable to properties sold. Capitalized costs are allocated to properties
      sold based on the proportion of claims sold to the claims remaining within
      the
      project area.




**Reclamation
      and Remediation**




Expenditures
      for ongoing compliance with environmental regulations that relate to current
      exploration operations are expensed. Expenditures resulting from the remediation
      of existing conditions caused by past operations that do not contribute to
      future revenue generations are expensed. Liabilities are recognized when
      environmental assessments indicate that remediation efforts are probable and
      the
      costs can be reasonably estimated.




Estimates
      of such liabilities are based upon currently available facts, existing
      technology and presently enacted laws and regulations taking into consideration
      the likely effects of inflation and other societal and economic factors, and
      include estimates of associated legal costs. These amounts also reflect prior
      experience in remediating contaminated sites, other companies’ clean-up
      experience and data released by The Environmental Protection Agency or other
      organizations. Such estimates are by their nature imprecise and can be expected
      to be revised over time because of changes in government regulations,
      operations, technology and inflation. Recoveries are evaluated separately from
      the liability and, when recovery is assured, the Company records and reports
      an
      asset separately from the associated liability.




Provisionfor
      Taxes




Income
      taxes are provided based upon the liability method of accounting pursuant to
      Statement of Financial Accounting Standards No. 109, “Accounting for Income
      Taxes” (hereinafter “SFAS No. 109”). Under this approach, deferred income
      taxes are recorded to reflect the tax consequences in future years of
      differences between the tax basis of assets and liabilities and their financial
      reporting amounts at each year-end. A valuation allowance is recorded against
      the deferred tax asset if management does not believe the Company has met the
      “more likely than not” standard imposed by SFAS No. 109 to allow
      recognition of such an asset.




-9-




Basicand
      Diluted Net Loss Per Share




Net
      loss
      per share was computed by dividing the net loss by the weighted average number
      of shares outstanding during the period. The weighted average number of shares
      was calculated by taking the number of shares outstanding and weighting them
      by
      the amount of time that they were outstanding. Diluted net loss per share for
      GMO is the same as basic net loss per share, as the inclusion of common stock
      equivalents would be antidilutive.




NOTE5—INVESTMENTS




The
      Company accounts for its investments in debt and equity securities in accordance
      with the provisions of Statement of Financial Accounting Standards No. 115,
“Accounting for Certain Investments in Debt and Equity Securities,” and reports
      its investments in available for sale securities at their fair value, with
      unrealized gains and losses excluded from income or loss and included in other
      comprehensive income or loss.




NOTE6—MINING
      PROPERTIES, LAND AND WATER RIGHTS




**Mount
      Hope.** The
      Company is currently in the process of evaluating the Mount Hope molybdenum
      project and acquiring necessary rights, land and claims related to the
      operations.




In
      November 2004, GMO entered into an option to lease all property and assets
      of
      the Mount Hope Molybdenum Property from Mt. Hope Mines, Inc. and in
      October 2005 exercised its rights under the option. The renewable lease
      allows GMO to proceed for the next 30 years with permitting, developing and
      mining the deposit and for so long thereafter as GMO maintains an active
      operation. At December 31, 2004, the Company had paid $186,044 cash and issued
      500,000 shares of common stock with warrants to purchase 500,000 shares of
      common stock to Mt. Hope Mines, Inc. for the Mount Hope option. Pursuant to
      the
      terms of the lease, the underlying total royalty on production payable to
      Mt. Hope Mines, Inc., less certain deductions, is three percent for a
      molybdenum price up to $12 per pound, four percent for a molybdenum
      price up to $15 per pound, and five percent for a molybdenum price above
      $15 per pound (the “Production Royalties”). GMO is subject to certain
      periodic payments as set forth in Note 11 “Commitments and Contingencies.”
Additionally, GMO is obligated to pay Exxon Mineral Company a one percent
      net smelter royalty on all production.




In
      July
      2006, the Company purchased deeded land which includes certain BLM grazing
      rights and certain water rights for $1,869,000. The primary purpose for the
      purchase of this asset was to acquire the water rights for use by the Mount
      Hope
      operations.




In
      November 2006, the Company purchased from Atlas Precious Metals, Inc. patented
      millsite claims for $32,090, water rights for $363,687 and fee land in Eureka,
      Nevada for $26,740 with improvements of $5,350. The primary purpose of this
      purchase was to acquire the water rights of 1,448 acre feet for the Mount Hope
      operation.




In
      April
      2007, the Company purchased land including all water rights and various personal
      property for cash of $3,200,000 and 50,000 shares of common stock valued at
      $308,000. The primary purpose of this purchase was to acquire the water rights
      for the Mount Hope operation.




In
      May
      2007, the Company purchased water rights for cash of $1,375,000 and
      17,000 shares of common stock valued at $98,000. The primary purpose of
      this purchase was to acquire the water rights for the Mount Hope
      operation.




**Hall-Tonopah.** The
      Company is currently in the process of exploration and evaluation of the
      Hall-Tonopah molybdenum project.




During
      the year ended December 31, 2005, the Company entered into an option
      agreement with High Desert Winds LLC (“High Desert”) for High Desert’s
      approximately ten square mile property in Nye County, Nevada, including water
      rights, mineral and surface rights, buildings and certain equipment (the
“Hall-Tonopah Property”). On March 17, 2006, the Company entered into a
      purchase agreement with High Desert whereby it purchased a substantial portion
      of the Hall-Tonopah Property. At closing, the Company paid High Desert a cash
      payment of $4,460,000 for the portion of the Hall-Tonopah Property that it
      purchased and made a deferred payment of $990,000 in November of 2006 for the
      purchase of the remaining portion of this property for the total purchase price
      of $5,450,000 including buildings and equipment at the Hall-Tonopah site. The
      primary purpose of the Hall-Tonopah purchase was to further the Company’s
      strategy of exploring and developing potential molybdenum
      properties.


-10-


At
      December 31, 2006, the Hall-Tonopah Property was subject to a
      12 percent royalty payable with respect to the net revenues generated from
      molybdenum or copper minerals removed from the properties purchased. In January
      2007, the Company completed the acquisition of all of the issued and outstanding
      shares of the corporation that held the 12 percent net smelter royalty
      interest in the mineral rights of the Hall-Tonopah Property and, as a result
      of
      this purchase, the Company now owns the Hall Tonopah Property and all associated
      mineral rights without future royalty obligations. As set forth in the Purchase
      Agreement, the Company paid approximately $3,691,000 in cash at closing, net
      of
      cash acquired of $1,246,000. At first commercial production of the property,
      the
      Company has agreed to pay an additional $6,000,000. Because the Company cannot
      determine beyond a reasonable doubt that the mine will attain commercial
      production, the Company has not recognized the $6,000,000 liability in its
      financial statements. In connection with the acquisition, the Company also
      received restricted cash totaling $491,000 and assumed reclamation and
      remediation costs, accounts payable and accrued liabilities of
      $263,000.




In
      March
      2007, the Company purchased a patented lode mining claim adjacent to the
      Hall-Tonopah Property for $175,000 cash. Additionally, in March 2007, the
      Company completed the purchase of certain patented lode mining claims referred
      to as the Liberty Claims on property adjacent to the Hall-Tonopah Property
      for
      cash of $75,000 and 150,000 shares of common stock valued at $420,000.
      These two acquisitions of mining claims were completed to control additional
      mineral rights needed for the development of the Hall-Tonopah Property. The
      Company currently believes that it has all the mineral, water and surface rights
      necessary to develop the Hall-Tonopah Property.




**Other
      Properties.** The
      Company’s mining claims and land purchased prior to 2006 consist in part of
      (a) approximately 107 acres of fee simple land in the Little Pine
      Creek area of Shoshone County, Idaho, (b) six patented mining claims known
      as Chicago-London group, located near the town of Murray in Shoshone County,
      Idaho, (c) 265 acres of private land with three unpatented claims in
      Josephine County, Oregon, known as the Turner Gold project.




The
      following is a summary of mining properties, land and water rights at
      June 30, 2007 and December 31, 2006 (in thousands):




**At
                June 30,**
              **2007**
            
            **At
                Dec. 31,**
              **2006**Mount
                Hope:Real
                estate and water rights
            
            $
            7,125
            
            $
            2,292Total
                Mount Hope
            
            
            7,125
            
            
            2,292Hall-Tonopah:Hall-Tonopah
                Property
            
            
            9,162
            
            
            5,417Liberty
                claims
            
            
            495
            
            
            —Total
                Hall-Tonopah
            
            
            9,657
            
            
            5,417Other
                Properties:Little
                Pine Creek land
            
            
            1
            
            
            1Chicago-London
                group
            
            
            80
            
            
            80Turner
                Gold land
            
            
            808
            
            
            808Total
                Other Properties
            
            
            889
            
            
            889Total
            
            $
            17,671
            
            $
            8,598




-11-




**NOTE
      7—PROPERTY AND EQUIPMENT**




During
      the six months ended June 30, 2007, the Company purchased depreciable
      assets such as vehicles, equipment and computers in the amount of $481,000.
      The
      vehicles, equipment and computers will be depreciated over useful lives of
      three
      to seven years using straight line depreciation. Depreciation expense for the
      six months ended June 30, 2007 was $76,000.




Capital
      assets are recorded at cost. Depreciation is calculated using the straight-line
      method over three to twenty years. The following is a summary of property,
      equipment, and accumulated depreciation at June 30, 2007 and
      December 31, 2006 (in thousands):




**Cost**
            
            **Accumulated
                Depreciation**
            
            **Net
                Book Value at June 30, 2007**
            
            **Net
                Book Value at Dec. 31,**
              **2006**Field
                Equipment and Vehicles
            
            $
            391
            
            $
            67
            
            $
            324
            
            $
            167Office
                Furniture and Computers
            
            
            326
            
            
            67
            
            
            259
            
            
            209Buildings
                and Improvements
            
            
            267
            
            
            15
            
            
            252
            
            
            55Total
            
            $
            984
            
            $
            149
            
            $
            835
            
            $
            431




NOTE8—RELATED
      PARTY TRANSACTIONS




In
      January 2007, the Company entered into an employment agreement with a son of
      the
      Company’s Chairman for services as Director of Projects and Operations. Under
      this agreement, the Company granted a stock option to purchase
      140,000 shares at $2.78 per share, the closing price of the Company’s
      stock on January 30, 2007. Also under this agreement the Company issued an
      additional 90,000 shares of nonvested common stock at $2.78 that will vest
      based on certain performance based milestones. The Company has recorded the
      expense associated with these shares this period as per the accounting
      guidelines of SFAS No. 123(R), *Share-Based
      Payment.*




Additional
      related party transactions are included as part of Note 9.




NOTE9—COMMON
      STOCK AND COMMON STOCK WARRANTS




In
      April 2007, the Company completed the private placement of units for gross
      proceeds of $25,000,000 less placement agent and finder’s fees of $1,500,000. In
      the aggregate, the Company issued 7,353,000 units at a price of $3.40 per
      unit. Each unit consisted of one share of common stock and a warrant to purchase
      one half of one share of common stock. Each warrant will be exercisable at
      a
      price of $5.20 per whole share for a period of one year from the date of
      closing. The Units were offered and sold pursuant to exemptions from
      registration under Regulation S of the Securities Act of 1933, as amended (the
      “Securities Act”), for offers and sales occurring outside the United States, and
      Rule 506 of Regulation D and Section 4(2) of the Securities Act,
      as a transaction not involving any public offering.




During
      the six months ending June 30, 2007, the Company had the following
      issuances of common stock. The Company issued 303,000 shares of common
      stock upon the cashless exercise of warrants and 255,000 shares of common
      stock upon the cashless exercise of stock options. Warrants and options in
      the
      amount of 2,779,000 and 326,000 were exercised for cash in the amount of
      $6,387,000 and $379,000 respectively. The Company issued 150,000 shares of
      common stock in the completion of the Liberty Claims purchase valued at
      $420,000, issued 17,000 shares of common stock in the completion of a water
      rights purchase associated with Mount Hope valued at $98,000, issued
      50,000 shares of common stock as part of the consideration paid for
      property in the Mount Hope vicinity valued at $308,000, and issued
      75,000 shares of common stock in exchange for services valued at $304,000.
      The Company issued 620,000 shares of nonvested stock to officers and
      management of the Company. During the first six months of 2007, shareholders
      returned to the Company 39,000 shares of common stock due to a stock option
      exercise pricing error in 2006.




-12-


During
      the year ended December 31, 2006 the Company had two private placements of
      Common Stock Units. In the first private placement, the Company sold 3,021,936
      common stock units for $1.10 per unit. The Company received cash of $3,324,130
      less cash placement agent and finder’s fees of $157,699 and issued 170,550
      Common Stock Units for finder’s fees valued at $1.80 per unit for a total value
      of $307,511. Each unit consisted of one of share of common stock with warrants
      to purchase one-half share of common stock at a price of $1.75 for each whole
      share for a period of two years. In the second private placement, the Company
      sold 15,000,000 common stock units for $2.00 per unit. Each unit consisted
      of
      one of share of common stock with warrants to purchase one-half share of common
      stock at a price of $3.75 for each whole share for a period of two years. The
      Company received cash of $30,000,000 less cash placement agent and finder’s fees
      of $2,125,000 and issued 800,000 warrants to purchase shares of common stock
      at
      a price of $3.75 for each whole share for a period of five years for finder’s
      fees valued at $2.17 per warrant for a total value of $1,735,214.




Also
      in
      the year ended December 31, 2006, the Company issued 1,482,147 shares of common
      stock for the cashless exercise of warrants and 1,008,837 shares of common
      stock
      for the cashless exercise of stock options. Warrants and options in the amount
      of 5,838,055 and 340,000 were exercised for cash in the amount of $4,476,927
      and
      $60,670 respectively, less combined brokerage fees of $230,684. The Company
      issued 50,000 shares of common stock for services valued at $112,566. The
      Company issued 75,000 warrants to purchase shares of common stock at a price
      of
      $2.10 for a period of two years in exchange for services valued at $1.07 per
      warrant for a total value of $79,946.




The
      following is a summary of common stock warrant activity for the six months
      ended
      June 30, 2007:




**Number
                of Shares Under Warrants**
            
            **Exercise
                Price**Balance
                at December 31, 2006
            
            
            12,268,000
            
            $
            0.80
                to $3.75Issued
                in connection with a private placement
            
            
            3,676,000
            
            $
            5.20Exercised
                for cash
            
            
            (2,779,000
            )
            $
            0.80
                to $3.75Exercised
                in cashless exchange
            
            
            (400,000
            )
            $
            1.00Expired
            
            
            (60,000
            )
            $
            1.00Balance
                at June 30, 2007
            
            
            12,705,000
            
            $
            0.80
                to $5.20Weighted
                average exercise price
            
            $
            3.82







Of
      the
      warrants outstanding at June 30, 2007, 7,050,000 are exercisable at $3.75 per
      warrant and expire February 2011; 3,676,000 are exercisable at $5.20 per share
      and expire April 2008; and the remaining 1,979,000 are exercisable at prices
      ranging from $.80 to $2.10 and expire through November 2010.




NOTE10—PREFERRED
      STOCK




In
      October 2004, shareholders of the Company authorized 10,000,000 shares of
      no par value preferred stock. The authorized but unissued shares of preferred
      stock may be issued in designated series from time to time by one or more
      resolutions adopted by the board of directors. The directors have the power
      to
      determine the preferences, limitations and relative rights of each series of
      preferred stock.




In
      November 2004, the board of directors unanimously consented to amend the
      articles of incorporation of the Company. The amendment reclassified
      10,000,000 shares of the Company’s no par value preferred stock into
      10,000,000 shares of $0.001 par value Series A preferred stock. At
      June 30, 2007 and December 31, 2006, no shares of $0.001 par value
      Series A preferred stock were issued or outstanding.




-13-




**NOTE
      11—STOCK BASED COMPENSATION**




StockBasedCompensation Plans




During
      2006, the board of directors and shareholders adopted the 2006 Equity Incentive
      Plan of the Company (the “2006 Plan”). During 2004, the board of directors and
      shareholders adopted the 2003 Stock Option Plan of the Company (the “2003 Plan”
and together with the 2006 Plan, the “Plans”). The purpose of the Plans is to
      give the Company greater ability to attract, retain, and motivate its officers
      and key employees. The Plans are intended to provide the Company with the
      ability to provide incentives more directly linked to the success of the
      Company’s business and increases in shareholder value.




Under
      the
      2006 Plan, the board of directors is authorized to grant incentive stock options
      (“ISOs”) to employees (pursuant to Internal Revenue Code 422),
      non-statutory stock options, restricted stock awards, restricted stock units
      and
      stock appreciation rights. The aggregate number of shares of common stock that
      may be issued pursuant to awards granted under the 2006 Plan will not exceed
      3,500,000 plus the number of shares that are ungranted and those that are
      subject to reversion under the 2003 Plan. As of June 30, 2007, the maximum
      number of shares available for issuance under the 2003 Plan was
      360,000 shares. Shares under the 2003 Plan that become eligible for awards
      under the 2006 Plan may not be granted again under the 2003 Plan.




**Stock
      Options**




During
      the six months ending June 30, 2007, the Company issued 1,865,000 options
      under the 2006 Plan with an exercise price ranging from $2.41 to $6.40 with
      vesting at various dates through 2009. These options were granted to members
      of
      the board of directors, officers, employees and consultants of the Company.
      The
      fair value of each option is estimated on the issue date using the Black-Scholes
      Option Price Calculation. The following assumptions were made in estimating
      the
      fair value: risk free interest of 4.94% to 5.05%; volatility of 88% to 91%;
      dividend rate of 0%; and expected life of 2.0 years. The total value of
      options awarded during the first six months of 2007 was calculated at
      $3,858,000. Expense was recorded of $2,803,000 for the options which were earned
      in the first six months ended June 30, 2007.




During
      the year ended December 31, 2006, the Company granted 1,665,000
      non-qualified stock options outside of the Plans with an exercise price ranging
      from $2.25 to $3.68 with vesting at various dates through 2008. These options
      were granted to members of the board of directors, officers, and employees
      of
      the Company. The Company issued 60,000 of ISOs within the 2003 Plan with an
      exercise price of $2.10 with vesting at various dates through 2008. The fair
      value of each option is estimated on the issue date using the Black-Scholes
      Option Price Calculation. The following assumptions were made in estimating
      the
      fair value: risk free interest of 5%; volatility of 101%; dividend rate of
      0%
      and expected life of 2.4 years. The total value of options awarded during 2006
      was calculated at $3,347,000. Expense was recorded of $2,105,000 for the options
      which were earned in 2006.


-14-


The
      following is a summary of the Company’s stock option plans as of June 30,
      2007:




**Number
                of securities to be issued upon exercise of outstanding
                options**
            
            **Weighted
                average exercise price of outstanding options**
            
            **Number
                of securities remaining available for future issuance under equity
                compensation plans**Equity
                compensation plans not approved by security holders
            
            
            2,057,000
            
            $
            1.20
            
            
            n/aEquity
                compensation plans approved by security holders:2006
                Plan
            
            
            1,845,000
            
            
            3.98
            
            
            1,015,000
            (1)2003
                Plan
            
            
            540,000
            
            
            0.59
            
            
            360,000Total
            
            
            4,442,000
            
            $
            2.28
            
            
            1,375,000





(1) The
      aggregate number of shares of common stock that may be issued pursuant to awards
      granted under the 2006 Equity Incentive Plan will not exceed 3,500,000 plus
      the
      number of shares that are ungranted and those that are subject to reversion
      under the 2003 Stock Plan. Shares under the 2003 Plan that become eligible
      for
      awards under the 2006 Plan may not be granted again under the 2003
      Plan.




The
      following is a summary of stock option activity in 2006 and 2007:




**Number
                of Shares Under Warrants**
            
            **Exercise
                Price**Outstanding
                January 1, 2006
            
            
            4,020,000
            
            $
            0.43Granted
            
            
            1,725,000
            
            
            3.01Exercised
            
            
            (1,615,000
            )
            
            0.49Forfeited
            
            
            (480,000
            )
            
            1.57Expired
            
            
            —
            
            
            —Outstanding
                at December 31, 2006
            
            
            3,650,000
            
            $
            1.48Options
                exercisable at December 31, 2006
            
            
            2,705,000Weighted
                average fair value of options granted during 2006
            
            $
            3.10Outstanding
                January 1, 2007
            
            
            3,650,000
            
            $
            1.48Granted
            
            
            1,865,000
            
            
            3.97Exercised
            
            
            (956,000
            )
            
            2.48Forfeited
            
            
            (117,000
            )
            
            2.71Expired
            
            
            —
            
            
            —Outstanding
                June 30, 2007
            
            
            4,442,000
            
            $
            2.28Exercisable
                at June 30, 2007
            
            
            3,402,000Weighted
                Average Fair Value Granted During 2007
            
            $
            2.07





NonvestedShares
      of Common Stock




During
      the six months ending June 30, 2007, the Company issued 620,000 shares
      of nonvested common stock to officers and employees of the Company that will
      vest based on certain performance based milestones established for each
      person **.** The
      total value of restricted stock awarded and expensed during the first six months
      of 2007 was calculated at $1,716,000.




-15-




**NOTE
      12—INCOME TAXES**




At
      June 30, 2007 and December 31, 2006, the Company had deferred tax
      assets principally arising from the net operating loss carry forwards for income
      tax purposes multiplied by an expected rate of 34%. As management of the Company
      cannot determine that it is more likely than not that the Company will realize
      the benefit of the deferred tax assets, a valuation allowance equal to the
      deferred tax asset has been established at June 30, 2007 and
      December 31, 2006. The significant components of the deferred tax asset at
      June 30, 2007 and December 31, 2006 were as follows (in
      thousands):




**June
                30,**
              **2007**
            
            **December
                31,**
              **2006**Net
                operating loss carry forward
            
            $
            12,202
            
            $
            8,425Deferred
                tax asset
            
            $
            4,149
            
            $
            2,865Deferred
                tax asset valuation allowance
            
            $
            (4,149
            )
            $
            (2,865
            )Net
                deferred tax asset
            
            
            —
            
            
            —







At
      June 30, 2007 and December 31, 2006, the Company had a net operating
      loss carry forward of approximately $12,202,000 and $8,425,000 respectively,
      which expire in the years 2022 through 2027. The change in the allowance account
      from December 31, 2006 to June 30, 2007 was $1,284,000.




NOTE
      13—COMMITMENTS
      AND CONTINGENCIES




**Mount
      Hope**




The
      Mount
      Hope Lease may be terminated upon the expiration of its 30-year term, earlier
      at
      our election, or upon our material breach and failure to cure such breach.
      If we
      terminate the lease, termination is effective 30 days after receipt by MHMI
      of
      our written notice to terminate the Mount Hope Lease. In order to maintain
      the
      lease, the Company must pay certain deferral fees and advance royalties as
      discussed below.




The
      Mount
      Hope Lease Agreement requires a royalty advance (the “Construction Royalty
      Advance”) of the greater of $2,500,000 or 3% of the construction capital cost
      estimate upon the earliest of the Company’s securing project financing in
      sufficient amounts to develop and put into operation the Mount Hope property
      at
      a production level of at least 10 million pounds of annual production or
      October 19, 2008.




The
      Company has the right to defer the Construction Royalty Advance for one or
      two
      years by payment of a deferral fee (the “Deferral Fee”) in the amount of
      $350,000 on or before October 19, 2008 and October 19, 2009 in the
      event project financing for the project has not been secured by each of the
      dates. By October 19, 2010, the Company must pay at a minimum $2,500,000 of
      the Construction Royalty Advance with the remainder due upon securing project
      financing or 50% of the remainder on October 19, 2011 and the other 50% due
      on October 19, 2012.




Once
      the
      Company has paid in full the Construction Royalty Advance, the Company is
      obligated to pay an advance royalty (the “Annual Advance Royalty”) each
      October 19 thereafter in the amount of $500,000 per year. The
      Construction Royalty Advance and the Annual Advance Royalty are collectively
      referred to as the “Advance Royalties”. All Advance Royalties are credited
      against the Production Royalties (see note 4) once the mine has achieved
      commercial production. (The Deferral Fees are not recoverable against Production
      Royalties.)





-16-


Based
      on
      the Company’s current estimate of developing and operating the mine, we believe
      our contractual obligations under the Mount Hope Lease Agreement will be as
      shown in the following table. This estimate is based on our current estimates
      of
      the timing of securing project financing and construction capital costs. The
      Company is currently in the process of developing a new bankable feasibility
      study and our estimates of both the amount and the timing may change upon
      completion of the bankable feasibility study (in thousands).




**Year**
            
            **Deferral
                Fees**
            
            **Advance
                Royalties**
            
            **Total**2007
            
            $
            350
            
            $
            —
            
            $
            3502008
            
            
            350
            
            
            —
            
            
            3502009
            
            
            —
            
            
            21,000
            
            
            21,0002010
            
            
            —
            
            
            500
            
            
            5002011
            
            
            —
            
            
            500
            
            
            500Thereafter
                (1)
            
            
            —
            
            
            —
            
            
            —Total
            
            $
            700
            
            $
            22,000
            
            $
            22,700





(1) After
      the first full year of production the Company estimates that the Production
      Royalties will fully recover the Advance Royalties for the life of the project
      and, further, the Advance Royalties will be fully recovered (credited against
      Production Royalties) by the end of 2012.




**Environmental
      Considerations**




The
      Company owns and has owned mineral property interests on certain public and
      private lands in Shoshone County, Idaho. The Company’s mineral property holdings
      known as the Little Pine Creek and the Chicago-London properties include lands
      contained in mining districts that have been designated as “Superfund” sites
      pursuant to the Comprehensive Environmental Response, Compensation, and
      Liability Act. The Company and its properties have been and are subject to
      a
      variety of federal and state regulations governing land use and environmental
      matters. The Company believes it has been in substantial compliance with all
      such regulations, and is unaware of any pending action or proceeding relating
      to
      regulatory matters that would affect the financial position of the Company.
      The
      Company’s management acknowledges, however, that the possibility exists that the
      Company may be subject to further environmental liabilities associated with
      its
      properties in the future, and that the amount and nature of any liabilities
      the
      Company may be held responsible for is impossible to estimate.




**Other
      Commitments and Contingencies**




The
      Company has entered into miscellaneous notes for vehicles and leases for office
      equipment at various interest rates and terms totaling $150,000. The table
      below
      shows these obligations over the next five years (in thousands).




**Year**
            
            **Lease**
              **Payment**
            
            **Interest
                on Leases**
            
            **Note**
              **Payment**
            
            **Note**
              **Interest**2007
                (Remaining portion)
            
            $
            5
            
            $
            1
            
            $
            17
            
            $
            22008
            
            
            10
            
            
            2
            
            
            35
            
            
            32009
            
            
            10
            
            
            1
            
            
            35
            
            
            22010
            
            
            10
            
            
            1
            
            
            6
            
            
            —2011
            
            
            10
            
            
            —
            
            
            —
            
            
            —Total
            
            $
            45
            
            $
            5
            
            $
            93
            
            $
            7







**ITEM
      2.** **MANAGEMENT’S
      DISCUSSION AND ANALYSIS OR PLAN OF OPERATION**




The
      following discussion of our financial condition and plan of operations
      constitutes management’s review of the factors that affected our financial and
      operating performance for the six months ended June 30, 2007 and 2006. This
      discussion should be read in conjunction with the financial statements and
      notes
      thereto contained elsewhere in this report and in our Form 10-KSB/A, for
      the year ended December 31, 2006.




-17-


**Overview**




We
      are in
      the business of the exploration, development and, if warranted, the mining
      of
      properties containing molybdenum, as well as silver, gold, base metals and
      other
      specialty metals. We currently have a 30-year renewable lease for the lands,
      surface rights, patented and unpatented claims related to the Mount Hope
      Project, a primary molybdenum property, located in Eureka County, Nevada. In
      2006, we acquired a second significant molybdenum project, the Hall-Tonopah
      project, located in Nye County, Nevada. We also own other properties and mineral
      rights on which we intend to conduct mineral exploration and evaluation for
      determining economic viability for further development. We continue to identify,
      investigate, and acquire other potential properties for future
      development.




**Mount
      Hope** .
      In
      November 2004, we entered into an option agreement with Mt. Hope
      Mines, Inc., or MHMI, pursuant to which we were granted an exclusive
      one-year option to enter into a lease agreement for Mount Hope’s previously
      drilled molybdenum deposit consisting of 13 patented claims and
      109 unpatented claims in Eureka County, Nevada, for a lease period of
      30 years. In April 2005, we completed a Phase 1 Mine Feasibility Study
      with respect to Mount Hope and began the permitting process for placing into
      production an open pit molybdenum mine, concentrator and processing facility
      capable of producing 44,000 short tons (40,000 metric tons) of ore per day.
      In
      October 2005, we exercised the option and our lease agreement with MHMI
      became effective.




In
      December 2005, we completed a Technical Report that evaluated the potential
      to
      profitably extract the deeper portion of the Mount Hope deposit and augmented
      the mine plan contained in the 2005 Phase I Mine Feasibility Study. The
      augmented mine plan allowed for the mining and processing of 1.0 billion
      short tons (920 million tons) of molybdenum bearing rock over a mine
      production life of 50 or more years.




In
      June
      2007, the Company completed a five hole drill program that produced an aggregate
      of over 5,100 feet of core and 1,400 feet of RC drilling. The holes
      targeted mineralization expected to be mined within the first five years of
      the
      mine plan. The core material intersected long runs of mineralization with
      average molybdenum grades ranging between 0.145% and 0.118% ranging between
      635
      and 905 feet in thickness.




The
      Company intends to conduct another drilling program prior to the end of 2007,
      which will consist of approximately 14 holes (over 21,000 feet of
      core) that target mineralization within the first ten years of planned
      production.




In
      July
      2007, the Company announced plans to increase mill throughput capacity at
      Mount Hope from 44,000 short tons per day (40,000 metric tons) to an
      average of approximately 60,000 short tons per day (54,000 metric tons),
      with actual annual throughput dependant on ore characteristics and other
      factors. The increased throughput capacity is expected to expand average annual
      molybdenum production during the first ten years of production to
      37 million pounds from the Company’s prior estimates of approximately
      31 million pounds.




The
      Company is currently in the process of developing a bankable feasibility study
      with respect to the Mount Hope Project, which, due to the additional engineering
      required to accommodate the higher throughput capacity, is now scheduled to
      be
      completed in late August of 2007. The bankable feasibility study will include
      optimized mine and waste rock placement plans as well as revised estimates
      for
      capital and operating costs. As we are currently focused primarily on the
      development of the Mount Hope Project, we do not expect to generate revenues
      from operations before production of molybdenum begins at the Mount Hope
      Project.




Hall-Tonopah.
      In March 2006, we purchased from High Desert Winds LLC it’s approximately ten
      square mile property in Nye County, Nevada, including water rights, mineral
      and
      surface rights, buildings and certain equipment. The property includes the
      former Hall molybdenum and copper deposit which was mined by open pit methods
      between 1982 and 1985 by the Anaconda Minerals Company and between 1988 and
      1991
      by Cyprus Metals Company for molybdenum. Equatorial Tonopah, Inc. mined
      copper from 1999 to 2000 on this property. Much of the deposit was drilled
      but
      not developed or mined.




In
      January 2007, we purchased 100% of the corporation which owned a 12% net smelter
      returns royalty on the Hall-Tonopah Property, effectively eliminating the
      royalty on the property.


-18-


From
      January 2007 through April 2007, we completed a drilling program at Hall-Tonopah
      on the molybdenum mineralization of the existing molybdenum pit developed by
      Cyprus and an east extension mineralized area near the top of the east side
      of
      the existing pit. This program included 13 reverse circulation drill holes
      and
      six diamond drill holes.




The
      drilling program was designed to validate and confirm the continuity of
      mineralization indicated in the previous results of drilling by Anaconda and
      Cyprus. The new drilling confirmed previous drill results for the upper ore
      body, and has indicated near surface high grade mineralization greater than
      0.10% on the east side of the existing molybdenum pit.




The
      Company is conducting a pre-feasibility study on the Hall-Tonopah Property,
      which it expects to complete before year-end 2007.




**Other
      Properties** .
      We also
      currently own several other properties located in the western United States.
      These properties include additional molybdenum deposits as well as copper and
      gold deposits.




**Results
      of Operations for the Six Months Ended June 30, 2007**


**Compared
      to Six Months Ended June 30, 2006**




We
      are
      classified as an exploration stage company with no producing mines and,
      accordingly, we do not produce income. Our net loss for the six months ended
      June 30, 2007 was $(18,558,000) as compared to a net loss of $(6,955,000)
      for the six months ended June 30, 2006. The increase of $11,603,000 is
      attributable primarily to increased level of expenditures in exploration and
      research studies required to complete our Environmental Impact Statement and
      our
      bankable feasibility study at Mount Hope as well as continuing research and
      exploration at Hall-Tonopah as we continue to evaluate our molybdenum resources
      there. General and administrative costs are also increasing as we continue
      to
      expand our support personnel for the higher levels of activity in our
      exploration efforts.




Exploration
      and development expenditures of $10,155,000 were incurred at the Mount Hope
      Project and the Hall-Tonopah Project during the six months ended June 30,
      2007, as we continued to drill and evaluate our properties. This is consistent
      with our stated objective to complete our Mount Hope Project plans and to focus
      on the permitting required to bring the project to commercial production
      and to confirm existing mineralization as well as identify additional molybdenum
      resources at Hall-Tonopah. The expenditures during the six months ended
      June 30, 2007 were related to this objective, including associated costs
      involved in properly evaluating and developing our feasibility study for the
      Mount Hope Project.




We
      also
      incurred corporate and administrative costs of $8,932,000 for the six months
      ended June 30, 2007 compared with $4,309,000 for the six months ended
      June 30, 2006 consistent with our increased activity levels. These costs
      include employee compensation expenses, increase in staffing levels of corporate
      personnel and associated costs, marketing and investor relations expenses,
      general legal expenses, and accounting and compliance issues reflecting the
      greater complexity of our operations.




During
      the six months ended June 30, 2007, we added key Officers, Directors and
      employees as a continuation of our previously announced reorganization of the
      executive team to keep up with our significant growth. In connection with our
      compensation programs we granted stock options and unvested common shares to
      attract, retain and motivate our Officers, Directors and key employees. As
      a
      result, we incurred non-cash equity compensation costs of $4,519,000 in the
      six
      months ended June 30, 2007 compared with $676,000 in the six months ended June
      30, 2006. Approximately one half of the amount for the six months ended June
      30,
      2007 was as a result of the initial retention of Officers, Directors and
      employees and, accordingly, will not be of a recurring nature.




**Liquidity
      and Capital Resources**




We
      have
      limited capital resources and thus have to rely upon the sale of equity and
      debt
      securities for the cash required for exploration and development purposes,
      for
      acquisitions and to fund our administration. Since we do not expect to generate
      any revenues in the near future, we must continue to rely upon the sale of
      our
      equity and debt securities to raise capital. There can be no assurance that
      financing, whether debt or equity, will always be available to us in the amount
      required at any particular time or for any period or, if available, that it
      can
      be obtained on terms satisfactory to us.


-19-


Our
      cash
      balance at June 30, 2007 was $27,537,000 compared to $22,501,000 at
      June 30, 2006. Total assets at June 30, 2007 were $46,962,000 compared
      to $28,336,000 at June 30, 2006. The change in these balances reflects the
      purchase of property and water rights for our Mount Hope Project and the
      purchase of a corporation to secure the royalty at our Hall-Tonopah project
      offset by proceeds received in March 2007, from a private placement of equity.
      Current liabilities at June 30, 2007 were $3,245,000 compared to $293,000
      at June 30, 2006. This increase in current liabilities reflects our
      increased accounts payable due to increased drilling expenses and expenses
      related to the preparation of our bankable feasibility study, and due to the
      increase in our required provision for post closure reclamation and remediation
      costs.




On
      January 10, 2006, we concluded a private placement of 3,441,936 units at a
      price of $1.10 per unit. Each unit consisted of one share of our common
      stock and one-half of one warrant to purchase one share of our common stock.
      Each whole warrant is exercisable for 24 months from the date of issuance
      and carries an exercise price of $1.75 per whole share. The gross proceeds
      of this offering were $3,786,000 and, after payment of sales commissions and
      finder’s fees, we received net proceeds of $3,621,000.




On
      February 15, 2006, we concluded a private placement of 15,000,000 units at
      a price of $2.00 per unit. Each unit consisted of one share of our common
      stock and a warrant to purchase one-half of a share of our common stock. Each
      whole warrant is exercisable for five years from the date of issuance and
      carries an exercise price of $3.75 per whole share. The gross proceeds of
      this offering were $30,000,000 and, after payment of sales commissions and
      finder’s fees, we received net proceeds of $27,875,000. In the aggregate, we
      issued 15 million shares of common stock and warrants to purchase an
      additional 8.3 million shares, including warrants issued as compensation to
      the placement agent.




On
      January 30, 2007, the Company completed its previously announced
      acquisition of all of the issued and outstanding shares of a corporation that
      held a 12 percent net smelter royalty interest in the mineral rights of the
      Company’s Hall-Tonopah molybdenum-copper property in Nye County, Nevada. The
      Company now owns the Hall-Tonopah Property and all associated mineral rights
      without future royalty obligations. As set forth in the Purchase Agreement,
      the
      Company paid approximately $4,937,000 in cash at closing. At first commercial
      production of the property, the Company has agreed to pay an additional
      $6,000,000.




In
      April
      2007, we concluded a private placement of 7,353,000 units for gross proceeds
      of
      $25,000,000, with net proceeds to the Company of approximately $23,500,000
      after
      legal and other related expenses. In the aggregate, the Company issued the
      units
      at a price of $3.40 per unit. Each unit consisted of one share of common
      stock and a warrant to purchase one half of one share of common stock. Each
      warrant will be exercisable at a price of $5.20 per whole share for a
      period of one year from the date of closing.




See
      note 13 to the condensed consolidated notes to the financial statements for
      a discussion of commitments and contingencies.




**Changes
      in Accounting Policies**




We
      did
      not change our accounting policies during the six months ended June 30,
      2007.




**Special
      Note Regarding Forward-Looking Statements**




Certain
      statements in this report may constitute forward-looking statements, which
      involve known and unknown risks, uncertainties and other factors, which may
      cause actual results, performance or achievements of our company, the Mount
      Hope
      Project, Hall-Tonopah project and our other projects, or industry results,
      to be
      materially different from any future results, performance or achievements
      expressed or implied by such forward-looking statements. We use the words “may”,
“will”, “believe”, “expect”, “anticipate”, “intend”, “future”, “plan”,
“estimate”, “potential” and other similar expressions to identify
      forward-looking statements. Forward-looking statements may include, but are
      not
      limited to, statements with respect to the following:


-20-


·
            the
                timing and possible outcome of pending regulatory and permitting
                matters;


·
            the
                parameters and design of our planned initial mining facilities at
                the
                Mount Hope Project;


·
            future
                financial or operating performances of our company and our
                projects;


·
            the
                estimation and realization of mineral reserves, if
                any;


·
            the
                timing of exploration, development and production activities and estimated
                future production, if any;


·
            estimates
                related to costs of production, capital, operating and exploration
                expenditures;


·
            requirements
                for additional capital;


·
            government
                regulation of mining operations, environmental conditions and risks,
                reclamation and rehabilitation
                expenses;


·
            title
                disputes or claims;


·
            limitations
                of insurance coverage; and


·
            the
                future price of molybdenum, gold, silver or other
                metals.





You
      should not place undue reliance on these forward-looking statements, which
      speak
      only as of the date of this report. These forward-looking statements are based
      on our current expectations and are subject to a number of risks and
      uncertainties, including those set forth above. Although we believe that the
      expectations reflected in these forward-looking statements are reasonable,
      our
      actual results could differ materially from those expressed in these
      forward-looking statements, and any events anticipated in the forward-looking
      statements may not actually occur. Except as required by law, we undertake
      no
      duty to update any forward-looking statements after the date of this report
      to
      conform those statements to actual results or to reflect the occurrence of
      unanticipated events. We qualify all forward-looking statements contained in
      this report by the foregoing cautionary statements.




**ITEM
      3. CONTROLS AND PROCEDURES**


An
        evaluation was performed under the supervision and with the participation
        of our
        management, including our principal executive officer and principal financial
        officer, of the effectiveness of our disclosure controls and procedures (as
        defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act
        of
        1934) as of the end of the period covered by this Quarterly Report on Form
        10-QSB/A. Based on the foregoing and in light of the material weakness due
        to
        the lack of effective controls over the valuation and accuracy of stock
        compensation expense and valuation of warrants to purchase common stock (as
        previously disclosed in our Annual Report on Form 10-KSB/A for the year ended
        December 31, 2006), our principal executive officer and principal financial
        officer have concluded that our disclosure controls and procedures are not
        effective, as of the end of the period covered by this report, to ensure
        that
        information required to be disclosed by us in reports that we file or submit
        under the Exchange Act is recorded, processed, summarized and reported within
        the time periods specified in the Securities and Exchange Commission rules
        and
        forms and such information is accumulated and communicated to our management,
        including our principal executive officer and principal financial officer,
        to
        allow timely decisions regarding required disclosure.
  As
        more
        fully described in our Annual Report on Form 10-KSB/A for the year ended
        December 31, 2006, the Company has implemented a number of internal control
        procedures to remediate the material weakness discussed above. Specifically
        during the period covered by this report we hired new officers with
        substantially greater knowledge of and experience in internal controls and
        complex financial instruments. The CEO and Financial Officers of the Company
        have been hired/appointed to their present positions beginning January 2007
        as
        follows:
  a.
              Chief
                Executive Officer - January 2007 b.
              Chief
                  Financial Officer - April 2007
 c.
              Controller
                  and Treasurer - June 2007
 
 As
        part
        of the monthly and quarterly closing process, the controller, with the oversight
        of the CFO tracks equity instrument transactions during each quarter and
        reviews
        the results of the stock option software for the recording of share based
        payments, to ensure such calculations are made in accordance with accounting
        principals generally accepted in the United States.
  Also,
        a
        new board member and chairman of the audit committee with substantial experience
        and knowledge in internal controls and complex financial instruments was
        appointed in April 2007. As a result of this process, we made changes during
        the
        quarter ended June 30, 2007 that have materially affected, or are
        reasonably likely to materially affect, our internal control over financial
        reporting. As a result of these specific internal control improvements during
        the quarter plus the other improvements discussed more fully in the Form
        10-KSB/A, we believe the material weakness that existed at June 30, 2007
        has
        been remediated as of the date of this filing.
  The
        Company intends to continually review and evaluate the design and effectiveness
        of our disclosure controls and procedures as well as our internal control
        over
        financial reporting to improve our controls and procedures over time as the
        Company’s business transitions into mining operations and to correct any
        deficiencies that we may discover in the future. The Company anticipates
        that
        additional changes to our internal control and procedures will be made as
        we
        takes steps to become compliant with Section 404 of the Sarbanes-Oxley Act
        of 2002, which we anticipate will apply for our annual report for the year
        ended
        December 31, 2007.
 -21-


**PART
      II**


**OTHER
      INFORMATION**




**ITEM
      6.** **EXHIBITS**




**Exhibit
                Number**
            
            **Description
                of Exhibit**31.1
            
            Certification
                of CEO pursuant to Rule 13a-14(a)/15d-14(a) of the Securities
                Exchange Act31.2
            
            Certification
                of CFO pursuant to Rule 13a-14(a)/15d-14(a) of the Securities
                Exchange Act32.1
            
            Certification
                of CEO pursuant to 18 U.S.C. Section 135032.2
            
            Certification
                of CFO pursuant to 18 U.S.C.
                Section 1350


-22-


**SIGNATURES**




In
      accordance with the requirements of the Exchange Act, the Registrant has duly
      caused this report to be signed on its behalf by the undersigned, thereunto
      duly
      authorized.




Dated:
      November 15, 2007






GENERAL
                MOLY, INC./s/
                Bruce D. HansenBruce
                D. HansenChief
                Executive Officer





-23-