**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**




**FORM
      10-QSB**




**x**
            
            **QUARTERLY
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934****For
                the quarterly period ended September 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** **o** **NO** **x**




The
      number of shares outstanding of registrant’s common stock as of November 13,
      2007 was 56,986,882.




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









**PART
      I**




**FINANCIAL
      INFORMATION**




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




**GENERAL
      MOLY, INC.**


**(AN EXPLORATION
      STAGE COMPANY)**


**CONDENSED
      CONSOLIDATED BALANCE SHEETS**




**(Unaudited
      - Dollars in thousands except per share amounts)**




**At**
              **September
                30,**
              **2007**
            
            **At**
              **December
                31,**
              **2006****ASSETS:**
            
            
            
            **(Restated
                -**
              **Note
                2)**CURRENT
                ASSETSCash
                and cash equivalents
            
            $
            24,127
            
            $
            17,882Deposits
            
            
            61
            
            
            147Prepaid
                expense and other assets
            
            
            84
            
            
            46Total
                Current Assets
            
            
            24,272
            
            
            18,075Mining
                properties, land and water rights
            
            
            17,871
            
            
            8,598Property
                and equipment, net
            
            
            1,051
            
            
            431Restricted
                cash held for reclamation bonds
            
            
            541
            
            
            —TOTAL
                ASSETS
            
            $
            43,735
            
            $
            27,104**LIABILITIES
                AND STOCKHOLDERS’ EQUITY**CURRENT
                LIABILITIESAccounts
                payable and accrued liabilities
            
            $
            8,594
            
            $
            1,076Provision
                for post closure reclamation and remediation costs
            
            
            99
            
            
            —Current
                portion of long term debt
            
            
            42
            
            
            19Total
                Current Liabilities
            
            
            8,735
            
            
            1,095Provision
                for post closure reclamation and remediation costs, net of current
                portion
            
            
            422
            
            
            —Long
                term debt, net of current portion
            
            
            82
            
            
            58Total
                Liabilities
            
            
            9,239
            
            
            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,
              56,806,774
                and 43,397,540 shares issued and outstanding,
              respectively
            
            
            57
            
            
            43Additional
                paid-in capital
            
            
            85,163
            
            
            46,017Accumulated
                deficit before exploration stage
            
            
            (213
            )
            
            (213
            )Accumulated
                deficit during exploration stage
            
            
            (50,511
            )
            
            (19,896
            )Total
                Stockholders’ Equity
            
            
            34,496
            
            
            25,951TOTAL
                LIABILITIES AND STOCKHOLDERS’ EQUITY
            
            $
            43,735
            
            $
            27,104





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


2


**GENERAL
      MOLY, INC.**


**(AN EXPLORATION
      STAGE COMPANY)**


**CONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS**




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




**Three
                Months Ended**
            
            **Nine
                Months Ended**
            
            **January
                1, 2002**
              **(Inception
                of Exploration Stage) to September 30, 2007****September
                30, 2007**
            
            **September
                30, 2006**
            
            **September
                30, 2007**
            
            **September
                30, 2006****(Restated
                -**
              **Note
                2)**
            ****
            ****
            ****
            **(Restated
                -**
              **Note
                2)**
            ****
            **(Restated
                -**
              **Note
                2)**REVENUES
            
            $
            —
            
            $
            —
            
            $
            —
            
            $
            —
            
            $
            —OPERATING
                EXPENSES:Exploration
                and evaluation
            
            
            6,028
            
            
            1,785
            
            
            16,183
            
            
            4,725
            
            
            26,535General
                and administrative expense
            
            
            6,374
            
            
            1,030
            
            
            15,306
            
            
            5,375
            
            
            25,851TOTAL
                OPERATING EXPENSES
            
            
            12,402
            
            
            2,815
            
            
            31,489
            
            
            10,100
            
            
            52,386LOSS
                FROM OPERATIONS
            
            
            (12,402
            )
            
            (2,815
            )
            
            (31,489
            )
            
            (10,100
            )
            
            (52,386
            )OTHER
                INCOMEInterest
                and dividend income
            
            
            346
            
            
            358
            
            
            875
            
            
            688
            
            
            1,811Realized
                gains
            
            
            —
            
            
            —
            
            
            —
            
            
            —
            
            
            64TOTAL
                OTHER INCOME
            
            
            346
            
            
            358
            
            
            875
            
            
            688
            
            
            1,875LOSS
                BEFORE TAXES
            
            
            (12,056
            )
            
            (2,457
            )
            
            (30,614
            )
            
            (9,412
            )
            
            (50,511
            )INCOME
                TAXES
            
            
            —
            
            
            —
            
            
            —
            
            
            —
            
            
            —NET
                LOSS
            
            $
            (12,056
            )
            $
            (2,457
            )
            $
            (30,614
            )
            $
            (9,412
            )
            $
            (50,511
            )BASIC
                AND DILUTED NET LOSS PER SHARE OF COMMON STOCK
            
            $
            (0.22
            )
            $
            (0.06
            )
            $
            (0.60
            )
            $
            (0.26
            )WEIGHTED
                AVERAGE NUMBER OF COMMON
              SHARES
                OUTSTANDINGBASIC
                AND FULLY DILUTED
            
            
            55,979
            
            
            40,227
            
            
            51,193
            
            
            35,754





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 CASH FLOWS**




**(In
      thousands - Unaudited)**




**Nine
                Months Ended September 30, 2007**
            
            **Nine
                Months Ended September 30, 2006**
            
            **January
                1, 2002 (Inception of Exploration Stage to September 30,
                2007****(Restated
                -**
              **Note
                2)**
            ****
            **(Restated
                -**
              **Note
                2)**CASH
                FLOWS FROM OPERATING ACTIVITIES:Net
                loss
            
            $
            (30,614
            )
            $
            (9,412
            )
            $
            (50,511
            )Adjustments
                to reconcile net loss to net cash used by operating
                activities:Services
                and expenses paid with common stock
            
            
            304
            
            
            214
            
            
            1,990Depreciation
                and amortization
            
            
            129
            
            
            32
            
            
            203Equity
                compensation for management and directors
            
            
            5,546
            
            
            1,638
            
            
            8,856Decrease
                (increase) in restricted cash
            
            
            (50
            )
            
            —
            
            
            (50
            )Decrease
                (increase) in deposits, prepaid expenses and other
            
            
            49
            
            
            (217
            )
            
            (156
            )(Decrease)
                increase in accounts payable and accrued liabilities
            
            
            7,464
            
            
            (49
            )
            
            8,540(Decrease)
                increase in post closure reclamation and remediation costs
            
            
            312
            
            
            —
            
            
            312Net
                cash used by operating activities
            
            
            (16,860
            )
            
            (7,794
            )
            
            (30,816
            )CASH
                FLOWS FROM INVESTING ACTIVITIES:Payments
                for the purchase of equipment
            
            
            (752
            )
            
            (262
            )
            
            (1,130
            )Purchase
                of securities
            
            
            —
            
            
            —
            
            
            (137
            )Purchase
                of mining property, claims, options
            
            
            (8,675
            )
            
            (6,327
            )
            
            (16,462
            )Net
                increase in debt
            
            
            47
            
            
            —
            
            
            47Cash
                provided by sale of marketable securities
            
            
            —
            
            
            —
            
            
            247Net
                cash used by investing activities
            
            
            (9,380
            )
            
            (6,589
            )
            
            (17,435
            )CASH
                FLOWS FROM FINANCING ACTIVITIES:Proceeds
                from issuance of stock
            
            
            32,485
            
            
            33,482
            
            
            72,332Net
                cash provided by financing activities
            
            
            32,485
            
            
            33,482
            
            
            72,332Net
                increase (decrease) in cash and cash equivalents
            
            
            6,245
            
            
            19,099
            
            
            24,081Cash
                and cash equivalents, beginning of period
            
            
            17,882
            
            
            257
            
            
            46Cash
                and cash equivalents, end of period
            
            $
            24,127
            
            $
            19,356
            
            $
            24,127SUPPLEMENTAL
                DISCLOSURES OF CASH FLOW
              INFORMATION:Income
                taxes paid
            
            $
            —
            
            $
            —
            
            $
            —Interest
                paid
            
            $
            5
            
            $
            —
            
            $
            5NON-CASH
                INVESTING AND FINANCING ACTIVITIES:Common
                stock issued for equipment
            
            $
            —
            
            $
            11
            
            $
            11Common
                stock and warrants issued for property
            
            $
            826
            
            $
            —
            
            $
            1,201Restricted
                cash held for reclamation bond acquired in an
              acquisition
            
            $
            491
            
            $
            —
            
            $
            491Post
                closure reclamation and remediation costs assumed in an
              acquisition
            
            $
            209
            
            $
            —
            
            $
            209Accounts
                payable and accrued expenses assumed in an acquisition
            
            $
            54
            
            $
            —
            
            $
            54




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




4


**GENERAL
      M** **OLY,
      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, Idaho
        General
        Mines 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 GMO, with GMO being the
        surviving entity. For purposes of the Company’s reporting status with the
        Securities and Exchange Commission, GMO is deemed a successor to Idaho
        General Mines, Inc.





The
      interim Condensed Consolidated Financial Statements of General Moly, Inc. and
      its subsidiaries (collectively, “GMO” or the “Company”) 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 5). Upon its acquisition, the
      corporation was consolidated as a wholly owned subsidiary of the
      Company.




Certain
      amounts for the three and nine months ended September 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.
  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.
The
        restatements were made for the years ended December 31, 2004, 2005, and 2006
        and
        the six months ended June 30, 2007.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 nine months ended September 30,
                  2006**Property
                  research, exploration and development expenses
              
              $
              4,600
              
              $
              4,725
              
              $
              125General
                  and administrative expenses
              
              
              5,445
              
              
              5,375
              
              
              (70
              )Net
                  loss
              
              
              9,357
              
              
              9,412
              
              
              55Basic
                  and fully diluted loss per share
              
              
              .26
              
              
              .26
              
              
              –**Balance
                  Sheet at December 31, 2006**Land
                  and Mining Claims
              
              
              7,885
              
              
              8,598
              
              
              713Total
                  Assets
              
              
              26,391
              
              
              27,104
              
              
              713Total
                  Current 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






5




**NOTE
        3—LIQUIDITY AND CAPITAL REQUIREMENTS**
  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.
 
 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.
  6


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.
  **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.
  **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.
  DevelopmentStage
        Activities
  The
        Company was in the exploration stage from January 2002 through September
        2007.
        In October 2007 the Company established proven and probable reserves at the
        Mount Hope Project and approved the development of the project. The Company
        has
        not realized any revenue from operations. It will be primarily engaged in
        minerals development and exploration until it enters the 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 September 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,
        Evaluation and Development Costs
  All
        exploration and evaluation 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.
   7




**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.
  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.
  NOTE
        5—MINING
        PROPERTIES, LAND AND WATER RIGHTS
  **Mount
        Hope.** The
        Company is currently in the process of developing the Mount Hope molybdenum
        project.
  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. In 2004, the Company paid $.2 million cash and issued 500,000
        shares
        of common stock with warrants to purchase 500,000 shares of common stock
        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 $1.9 million. The primary purpose for
        the
        purchase of this asset was to acquire the water rights for use by the Mount
        Hope
        operations.
  8


In
        November 2006, the Company purchased from Atlas Precious Metals, Inc. patented
        millsite claims, water rights and fee land in Eureka, Nevada for $.1 million.
        As
        part of the purchase the Company paid $.3 million for 150,000 shares of
        Atlas Precious Metals, Inc. common stock. The investment was capitalized
        into
        mining properties, land and water rights, as the primary purpose of this
        purchase was to acquire the water rights for the Mount Hope
        operation.
  In
        April
        2007, the Company purchased land including all water rights and various personal
        property for cash of $3.2 million and 50,000 shares of common stock valued
        at $.3 million. 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 $1.4 million and
        17,000 shares of common stock valued at $.1 million. The primary purpose of
        this purchase was to acquire the water rights for the Mount Hope
        operation.
  In
        August
        2007, the Company completed a Bankable Feasibility Study on the Mount Hope
        Project, which provided data on the viability and expected economics of the
        project. Based on the findings in the study, the Company reported 1.31 billion
        pounds of contained molybdenum in Proven and Probable Reserves.
 
 In
        October 2007, the Board of Directors approved the transition of the project
        into
        the development phase and authorized our management to proceed with the
        execution of the project as outlined in the Bankable Feasibility Study.
        Accordingly, we have commenced placing long-lead equipment orders and we
        anticipate receiving the required permits in the second quarter of
        2009.
 
 **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 $4.5 million for the portion of the Hall-Tonopah Property that
        it
        purchased and made an additional payment of $1.0 million in November of 2006
        for
        the purchase of the remaining portion of this property for the total purchase
        price of $5.5 million 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.
  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 $3.7 million in cash at closing,
        net
        of cash acquired of $1.2 million. At first commercial production of the
        property, the Company has agreed to pay an additional $6.0 million. Because
        the
        Company cannot determine beyond a reasonable doubt that the mine will attain
        commercial production, the Company has not recognized the $6.0 million liability
        in its financial statements. In connection with the acquisition, the Company
        also received restricted cash totaling $.5 million and assumed reclamation
        and
        remediation costs, accounts payable and accrued liabilities of $.3
        million.
  In
        March
        2007, the Company purchased a patented lode mining claim adjacent to the
        Hall-Tonopah Property for $.2 million 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 $.1 million and 150,000 shares of common stock valued at $.4
        million. 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.
  9




**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, and (c) 265 acres of private land with three unpatented claims in
        Josephine County, Oregon, known as the Turner Gold project.
  **Summary.** The
        following is a summary of mining properties, land and water rights at
        September 30, 2007 and December 31, 2006 (in thousands):
  **At
                  September 30, 2007**
              
              **At
                  December 31,**
                **2006**Mount
                  Hope:Real
                  estate and water rights
              
              $
              7,325
              
              $
              2,292Total
                  Mount Hope
              
              
              7,325
              
              
              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
              
              $
              17,871
              
              $
              8,598
  NOTE
        6—PROPERTY
        AND EQUIPMENT
  During
        the nine months ended September 30, 2007, the Company purchased depreciable
        assets such as vehicles, equipment and computers in the amount of $.8 million.
        The vehicles, equipment and computers will be depreciated over useful lives
        of
        three to seven years using straight line depreciation. Depreciation expense
        for
        the nine months ended September 30, 2007 was $.1 million.
  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 September 30, 2007 and
        December 31, 2006 (in thousands):
  **Cost**
              
              **Accumulated
                  Depreciation**
              
              **Net
                  Book Value at September 30, 2007**
              
              **Net
                  Book Value at December 31,**
                **2006**Field
                  Equipment and Vehicles
              
              $
              391
              
              $
              87
              
              $
              304
              
              $
              167Office
                  Furniture and Computers
              
              
              354
              
              
              87
              
              
              267
              
              
              209Buildings
                  and Improvements
              
              
              508
              
              
              28
              
              
              480
              
              
              55Total
              
              $
              1,253
              
              $
              202
              
              $
              1,051
              
              $
              431
  NOTE
        7—RELATED
        PARTY TRANSACTIONS
  In
        January 2007, the Company entered into an employment agreement with a son
        of the
        Company’s Former 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.*
  10


Additional
        related party transactions are included as part of Note 10.
  NOTE
        8—COMMON
        STOCK AND COMMON STOCK WARRANTS
  **Nine
        months ended September 30, 2007**
  In
        April 2007, the Company completed the private placement of units for gross
        proceeds of $25.0 million less placement agent and finder’s fees of $1.5
        million. In the aggregate, the Company issued 7,352,942 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 nine months ending September 30, 2007, the Company had the following
        issuances of common stock. The Company issued 369,715 shares of common
        stock upon the cashless exercise of 542,000 warrants and 323,661 shares of
        common stock upon the cashless exercise of 670,000 stock options. Warrants
        and
        options in the amount of 3,481,131 and 1,365,833 were exercised for cash
        in the
        amount of $7.9 million and $1.1 million, respectively. The Company issued
        150,000 shares of common stock in the completion of the Liberty Claims
        purchase valued at $.4 million, issued 17,000 shares of common stock in the
        completion of a water rights purchase associated with Mount Hope valued at
        $.1 million, issued 50,000 shares of common stock as part of the
        consideration paid for property in the Mount Hope vicinity valued at $.3
        million, and issued 75,000 shares of common stock in exchange for services
        valued at $.3 million. During the first nine months of 2007, shareholders
        returned to the Company 38,998 shares of common stock due to a stock option
        exercise pricing error in 2006.
 **Year
          ended December 31, 2006**
  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 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 five 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 $1,725,216.
  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 nine months
        ended September 30, 2007:
  **Number
                  of Shares Under Warrants**
              
              **Exercise
                  Price**Balance
                  at December 31, 2006
              
              
              12,267,675
              
              $
              0.80
                  to $3.75Issued
                  in connection with a private placement
              
              
              3,676,471
              
              $
              5.20Exercised
                  for cash
              
              
              (3,481,131
              )
              $
              0.80
                  to $3.75Exercised
                  in cashless exchange
              
              
              (542,000
              )
              $
              1.00
                  to $3.75Expired
              
              
              (60,000
              )
              $
              1.00Balance
                  at September 30, 2007
              
              
              11,861,015
              
              $
              0.80
                  to $5.20Weighted
                  average exercise price
              
              $
              3.93
 
  Of
        the
        warrants outstanding at September 30, 2007, 6,802,000 are exercisable at
        $3.75
        per warrant and expire February 2011; 3,676,471 are exercisable at $5.20
        per
        share and expire April 2008; and the remaining 1,382,544 are exercisable
        at
        prices ranging from $.80 to $2.10 and expire through November 2010.
  NOTE
        9—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
        September 30, 2007 and December 31, 2006, no shares of $0.001 par value
        Series A preferred stock were issued or outstanding.
  11




NOTE
        10—STOCK
        BASED COMPENSATION
  StockBasedCompensation Plans
  During
        2006, the board of directors and shareholders adopted the General
        Moly, Inc. 2006 Equity Incentive Plan (the “2006 Plan”). In October 2007
        the shareholders approved an amendment to the 2006 Plan increasing the amount
        of
        shares that may be issued under the 2006 Plan from 3,500,000 to 5,100,000.
        During 2004, the board of directors and shareholders adopted the General
        Moly, Inc. 2003 Stock Option Plan (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
        5,100,000 plus the number of shares that are ungranted and those that are
        subject to reversion under the 2003 Plan. As of September 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 nine months ending September 30, 2007, the Company issued 2,280,000
        options under the 2006 Plan with an exercise price ranging from $2.41 to
        $7.37
        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 4.14% to 4.96%; volatility
        of
        87% to 93%; dividend rate of 0%; and expected life of 2.0 years. The total
        value of options awarded during the first nine months of 2007 was calculated
        at
        $5.3 million. Expense was recorded of $3.8 million for the options which
        were
        earned in the first nine months ended September 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 $3.3 million. Expense was recorded of $2.3 million for
        the
        options which were earned in 2006.
  12




The
        following is a summary of the Company’s stock option plans as of
        September 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
              
              
              1,467,500
              
              $
              1.34
              
              
              n/aEquity
                  compensation plans
                approved
                  by security holders:2006
                  Plan
              
              
              2,220,000
              
              
              4.44
              
              
              2,200,000
              (1)2003
                  Plan
              
              
              90,000
              
              
              1.55
              
              
              360,000Total
              
              
              3,777,500
              
              $
              3.15
              
              
              2,560,000
 
 (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 5,100,000 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
                  Options**
              
              **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
              
              
              2,280,000
              
              
              4.40Exercised
              
              
              (2,035,833
              )
              
              1.55Forfeited
              
              
              (116,667
              )
              
              2.71Expired
              
              
              —
              
              
              —Outstanding
                  September 30, 2007
              
              
              3,777,500
              
              $
              3.17Exercisable
                  at September 30, 2007
              
              
              2,435,832Weighted
                  Average Fair Value Granted During 2007
              
              $
              2.34
 
 Stockawards
        under the 2006 Plan
  During
        the nine months ended September 30, 2007, the Company issued 250,000 shares
        of common stock to an officer of the Company that were earned based on achieving
        certain performance based milestones established **.** Additionally, during the nine months ending September 30, 2007, the Company
        reserved for issuance an additional 270,000 shares of non-vested common
        stock for officers and employees of the Company that will vest and be issued
        based on the achievement of certain performance based milestones
        established for each person **.** The
        total value of the stock awards granted and expensed during the first nine
        months of 2007 was calculated at $1.7 million.
  13


NOTE
      11—INCOME
      TAXES




At
      September 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 September 30, 2007 and
      December 31, 2006. The significant components of the deferred tax asset at
      September 30, 2007 and December 31, 2006 were as follows (in
      thousands):




**September
                30,**
              **2007**
            
            **December
                31,**
              **2006**Operating
                loss carry forward
            
            $
            35,160
            
            $
            14,092Unamortized
                exploration costs
            
            $
            6,899
            
            $
            2,672Total
                Net operating loss carry forward
            
            $
            42,059
            
            $
            16,764Total
                deferred tax asset
            
            
            14,300
            
            
            5,700Deferred
                tax asset valuation allowance
            
            $
            (14,300
            )
            $
            (5,700
            )Net
                deferred tax asset
            
            
            —
            
            
            —




At
      September 30, 2007 and December 31, 2006, the Company had a net
      operating loss carry forward of approximately $42,059,000 and $16,764,000
      respectively, which expire in the years 2022 through 2027. The change in the
      valuation allowance from December 31, 2006 to September 30, 2007 was
      $8,600,000.




NOTE
      12—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 $2.5 million 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. Based upon 3% of the current construction capital cost
      estimate as set forth in the bankable feasibility study, the Construction
      Royalty Advance is estimated to be $25.5 million.




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 $.4
      million 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 $2.5 million
      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 $.5 million 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.)




14


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.
  **Year**
              
              **Deferral
                  Fees**
              
              **Advance
                  Royalties**
              
              **Total**2007
              
              $
              350
              
              $
              —
              
              $
              3502008
              
              
              350
              
              
              —
              
              
              3502009
              
              
              —
              
              
              25,500
              
              
              25,5002010
              
              
              —
              
              
              500
              
              
              5002011
              
              
              —
              
              
              500
              
              
              500Thereafter
                  (1)
              
              
              —
              
              
              —
              
              
              —Total
              
              $
              700
              
              $
              26,500
              
              $
              27,200
  (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.
  **Long
        lead items (including subsequent events)**
  As
        a
        continuing part of the development of the Mount Hope Project, the Company
        has
        begun to place orders for mining and milling equipment that must be built
        to the
        mine’s specifications and requires a long lead time for engineering and
        manufacturing. Contractual commitments for long lead items require progress
        payments during the engineering and construction of the equipment and have
        cancellation penalties in the event the company cancels the contract. In
        September and October 2007 the Company entered into three contracts to purchase
        a primary crusher, a semi-autogenous mill, two ball mills and various motors
        for
        the mills. The following are the total amounts due under the contracts by
        year
        (in thousands).
  **Year**
              
              **Total**2007
              
              $
              4902008
              
              
              14,7102009
              
              
              34,6562010
              
              
              —Total
              
              $
              49,856
  **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.
  15


**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 $230,000. 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)
              
              $
              4
              
              $
              1
              
              $
              13
              
              $
              22008
              
              
              17
              
              
              3
              
              
              56
              
              
              52009
              
              
              18
              
              
              3
              
              
              49
              
              
              52010
              
              
              17
              
              
              2
              
              
              16
              
              
              12011
              
              
              17
              
              
              1
              
              
              —
              
              
              —Total
              
              $
              73
              
              $
              10
              
              $
              134
              
              $
              13






16




**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 nine months ended September 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.
  **Overview**
  We
        are in
        the business of the exploration, development and, if warranted, the mining
        of
        properties containing molybdenum. 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.
  **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
        August
        2007, the Company completed a Bankable Feasibility Study on the Mount Hope
        Project, which provided data on the viability and expected economics of the
        project. The Bankable Feasibility Study indicated a Net Present Value (NPV)
        of
        $1.4 billion for the Mt. Hope project, an Internal Rate of Return (IRR) of
        over
        37% and capital payback of approximately 2.0 years. Molybdenum production
        over
        the first five years of the project is expected to be approximately 38 million
        pounds per year at a projected average direct operating cost of $4.42 per
        pound
        of molybdenum over the first five years and royalties of $1.15 per pound
        of
        molybdenum. Processed ore grades are expected to average 0.100% over the
        first
        five years. Based on the findings in the study, the Company reported 1.31
        billion pounds of contained molybdenum in Proven and Probable Reserves. The
        study estimated the required capital costs for the project at $852 million,
        based on the assumptions contained therein.
 
 In
        October 2007, the Board of Directors approved the transition of the project
        into
        the development phase and authorized our management to proceed with the
        execution of the project as outlined in the Bankable Feasibility Study.
        Accordingly, we have commenced placing long-lead equipment orders and we
        anticipate receiving the required permits in the second quarter of 2009.
        We do
        not expect to generate revenues from operations before production of molybdenum
        begins at the Mount Hope project. Based on the foregoing assumptions, we
        estimate that mine production at the Mount Hope Project will commence in
        the
        second half of 2010.
 
  **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.
  17
  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
        nine 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** **Nine
        Months Ended September 30, 2007**
 **Compared
        to Nine Months Ended September 30, 2006**
  Beginning
        in October 2007, we are classified as a development stage company with no
        producing mines and, accordingly, we do not produce income. Our net loss
        for the
        nine months ended September 30, 2007 was $30.6 million as compared to a net
        loss of $9.4 million for the nine months ended September 30, 2006. The
        increase of $21.2 million is attributable primarily to increased level of
        expenditures in exploration and evaluation required to complete our
        Environmental Impact Statement and our bankable feasibility study at Mount
        Hope
        as well as continuing and exploration and evaluation 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 development and exploration
        efforts.
  Exploration
        and evaluation expenditures of $16.2 million were incurred at the Mount Hope
        Project and the Hall-Tonopah Project during the nine months ended
        September 30, 2007, as we continued to drill and evaluate our properties.
        This is consistent with our stated objective to complete our Mount Hope Project
        development 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 nine months ended September 30, 2007 were related to this
        objective, including associated costs involved in properly evaluating and
        developing our Bankable Feasibility Study for the Mount Hope Project which
        was
        completed in August 2007.
  We
        also
        incurred corporate and administrative costs of $15.3 million for the nine
        months
        ended September 30, 2007 compared with $5.4 million for the nine months
        ended September 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 nine months ended September 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 $5.5 million in
        the
        nine months ended September 30, 2007 compared with $1.6 million in the nine
        months ended September 30, 2006. Over one half of the amount for the nine
        months
        ended September 30, 2007 was as a result of the initial retention of Officers,
        Directors and employees and, accordingly, is not expected to be of a recurring
        nature.
  18
  **Liquidity
        and Capital Resources**
  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.
 
 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 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.
 
 Our
        cash
        balance at September 30, 2007 was $24.1 million compared to $19.4 million
        at September 30, 2006. Total assets at September 30, 2007 were $43.8
        million compared to $27.5 million at September 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 September 30, 2007 were $8.8
        million compared to $.7 million at September 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 3,021,936 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 $3.3 million and, after payment of sales commissions
        and
        finder’s fees, we received net proceeds of $3.2 million.
  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 $30.0 million and, after payment of sales commissions
        and
        finder’s fees, we received net proceeds of $27.9 million. 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 $4.9 in cash at closing. At first commercial
        production of the property, the Company has agreed to pay an additional $6.0
        million.
  19
  In
        April
        2007, we concluded a private placement of 7,352,942 units for gross proceeds
        of
        $25.0 million, with net proceeds to the Company of approximately $23.5 million
        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 12 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 nine months ended
        September 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:
  ·
            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. 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. As a result
          of
          these internal control improvements, we believe the material weakness that
          existed at September 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 anticipates will apply for our annual report for the
          year
          ended December 31, 2007.
  20
 **PART
        II**
  **OTHER
        INFORMATION**
  **ITEM
        4.**  **SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**
  We
        held our
        Annual Meeting of Shareholders on October 4, 2007 to (1) elect members of
        the
        Company’s Board of Directors, (2) to approve the reincorporation of Idaho
        General Mines, Inc. (“Idaho General”) into the State of Delaware through a
        merger with and into the Company, (3) to approve an amendment to the Company’s
        2006 Equity Incentive Plan; and (4) to approve an amendment to accelerate
        the
        termination of the Company’s Shareholders Rights Plan. The results of the Annual
        Meeting are as follows:
 
 **(1)
        Election of Seven Members of the Board of Directors**
 
 The
        shareholders elected the following seven individuals to serve as directors
        of
        the Company for terms expiring at our next annual meeting and until their
        successors are elected and qualified:
 
 Name
              
              Votes
                  For
              
              Votes
                  WithheldBruce
                  D. Hansen
              
              48,572,297
              
              92,124Gene
                  W. Pierson
              
              46,724,755
              
              1,939,666Norman
                  A. Radford
              
              46,496,170
              
              2,168,251R.
                  David Russell
              
              46,708,655
              
              1,955,766Richard
                  F. Nanna
              
              46,495,970
              
              2,168,451Ricardo
                  M. Campoy
              
              48,464,035
              
              200,386Mark
                  A. Lettes
              
              48,351,079
              
              313,342
 
 **(2)
        Approval of Reincorporation of Idaho General into the State of
        Delaware**
 
 The
        shareholders approved the reincorporation of Idaho General into the State
        of
        Delaware through a merger with and into the Company by the following vote:
 For
                
                
                33,130,638Against
                
                
                2,622,959Abstain
                
                
                28,372Broker
                    Non-Vote
                
                
                12,882,452
 **(3)
        Approval of Amendment to the 2006 Equity Incentive Plan**
 
 The
        shareholders approved an amendment to the Company’s 2006 Equity Incentive Plan
        by the following vote:
 
 For
              
              
              28,435,756Against
              
              
              6,108,901Abstain
              
              
              1,237,312Broker
                  Non-Vote
              
              
              12,882,452


21
  **(4)**  **Approval
        of an Amendment to Accelerate the Termination of the Shareholders Rights
        Plan**
 
 The
        shareholders approved an amendment to the Shareholders
        Rights Agreement dated as of September 22, 2005 (as amended from time to
        time,
        the “Shareholders Rights Plan”), to accelerate the termination of the
        Shareholders Rights Plan, by the
        following vote:
 For
                
                
                35,409,932Against
                
                
                247,912Abstain
                
                
                124,125Broker
                    Non-Vote
                
                
                12,882,452
 **ITEM
        6.**  **EXHIBITS**
  **Exhibit**
                **Number**
              
              **Description
                  of Exhibit**2.1
              
              Agreement
                  and Plan of Merger dated October 5, 2007 (1)3.1
              
              Certificate
                  of Incorporation (1)3.2
              
              Bylaws
                  (1)4.13
              
              Fourth
                  Amendment to Shareholders Rights Agreement (1)10.8
              
              Amended
                  and Restated Employment Agreement between the Company and Bruce
                  D. Hansen
                  dated September 13, 2007 (2)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
 
 (1)
        Incorporated by reference to the Current Report of the registrant on Form
        8-K
        filed on October 5, 2007.
 (2)
        Incorporated by reference to the Current Report of the registrant on Form
        8-K
        filed on September 18, 2007.
  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