Document:

EXHIBIT
      10.3

     

    AMENDMENT
      TO LEASE AGREEMENT

     

    THIS
      AMENDMENT TO LEASE AGREEMENT (“Amendment”)
      is made effective November 20, 2007, between Mount Hope Mines, Inc., a Colorado
      corporation, whose address is 1351 4th
      St.,
      Suite 301, Santa Monica, California 90401 (hereinafter “Owner” or the “Company”)
      and General Moly, Inc., a Delaware corporation (successor-by-merger to Idaho
      General Mines, Inc., an Idaho corporation), whose address is 1726 Cole
      Boulevard, Suite 115, Lakewood, Colorado 80401 (hereinafter referred to as
“GMO”).

     

    RECITALS

     

    A. The
      Company and Idaho General Mines, Inc. entered into a Lease Agreement dated
      effective October 19, 2005 (the “Lease”), pursuant to which the Company
      granted to GMO an exclusive lease of certain Property (as defined in the Lease)
      owned by the Company, together with the exclusive right to develop the Property
      for the production of minerals and mineral substances.

     

    B. The
      parties now desire to clarify, revise and amend certain terms of the Lease,
      as
      set forth in this Amendment.

     

    NOW,
      THEREFORE, in consideration of the covenants and promises contained herein
      and
      other valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereby agree as follows:

     

    1. The
      parties agree to add a new Section 1.1(a)(iii) to the Lease which reads as
      follows:

     

    (iii) For
      purposes of this Agreement, “Molybdenum” shall mean all molybdenum-bearing ores,
      concentrates or materials (and any products derived therefrom) produced from
      the
      Property.

     

    2. The
      parties agree to modify Section 1.1(c) of the Lease to read as follows (and
      the parties acknowledge that the payments described below that were due on
      or
      before January 31, 2006, April 19, 2006, October 19, 2006,
      April 19, 2007 and October 19, 2007, respectively, were timely and properly
      paid):

     

    (c) Periodic
      Payments and Advance Royalty.
      Subject
      to GMO’s right of termination contained in Article 5, GMO shall pay the
      following to Owner (the payments described in Sections 1.1(c)(i)-(viii)
      below being referred to hereinafter as “Periodic Payments”):

     

    (i) Two
      Hundred and Fifty Thousand Dollars ($250,000.00) shall be due to Owner as of
      the
      Effective Date, One Hundred and Twenty-Five Thousand Dollars ($125,000.00)
      of
      which shall be paid on or before January 31, 2006 and the remaining One
      Hundred and Twenty-Five Thousand Dollars ($125,000.00) of which shall be paid
      on
      or before April 19, 2006.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (ii) Two
      Hundred and Fifty Thousand Dollars ($250,000.00) shall be due to Owner on
      October 19, 2006, One Hundred and Twenty-Five Thousand Dollars
      ($125,000.00) of which shall be paid on or before October 19, 2006 and the
      remaining One Hundred and Twenty-Five Thousand Dollars ($125,000.00) of which
      shall be paid on or before April 19, 2007.

     

    (iii) Three
      Hundred and Fifty Thousand Dollars ($350,000.00) shall be due to Owner on
      October 19, 2007.

     

    (iv) Subject
      to GMO’s right to defer this payment as provided for in Section 1.1(c)(v),
      and subject to GMO’s timely making any required Interim Financing Payments as
      provided for in Section 1.1(c)(vi), GMO shall pay to Owner the greater of
      Two Million Five Hundred Thousand Dollars ($2,500,000.00) or three percent
      (3%)
      of the Construction Capital Cost Estimate (the “Estimate”) on or before
      October 19, 2008. Any payment made to Owner under this
      Section 1.1(c)(iv) shall be subject to audit and adjustment in accordance
      with the provisions of Section 1.8.

     

    (v) Subject
      to its timely making any required Interim Financing Payments as provided for
      in
      Section 1.1(c)(vi), GMO may defer the payment required by
      Section 1.1(c)(iv) for up to two (2) years by paying to Owner on or before
      October 19, 2008 and October 19, 2009, respectively, the sum of Three
      Hundred and Fifty Thousand Dollars ($350,000.00). GMO may only elect to defer
      the payment required by Section 1.1(c)(iv) if after using its best efforts
      to secure Project Financing it is unable to secure such financing, and GMO
      shall
      provide written notice of such deferral to the Company not later than
      October 4, 2008 and again not later than October 4, 2009. Not later
      than thirty (30) days after the end of each calendar quarter after
      October 19, 2008, and until it has secured Project Financing or through
      October 19, 2009, GMO shall provide to the Company a written summary of its
      efforts to secure Project Financing during that calendar quarter.

     

    (vi) Although
      the parties acknowledge and agree that GMO has no obligation to obtain any
      interim financing, until Project Financing has been secured, if GMO obtains
      any
      interim financing, GMO shall pay to Owner as a partial payment towards the
      Estimate three percent (3%) of all funds received by GMO after September 1,
      2007 by way of public offerings, private placements, debt financings or
      otherwise, but only to the extent such funds are earmarked by GMO for capital
      expenditures at or for the benefit of the Property and will be included in
      the
      Estimate (each such payment as “Interim Financing Payment”). Each Interim
      Financing Payment shall be accompanied with an accounting from GMO of those
      funds earmarked for capital expenditures at or for the benefit of the Property
      which will be included in the Estimate, on which the partial three percent
      (3%)
      payment was based, and any additional funds raised which GMO claims are not
      so
      earmarked. By providing written notice to GMO within ninety (90) days after
      receipt of said accounting, Owner shall have the right to audit GMO’s books and
      records which pertain to the funds identified, in accordance with the procedures
      set forth in Section 1.1(d)(iv), except that all 180-day periods referenced
      therein shall be reduced to 90 days for purposes of this Section
      1.1(c)(vi). The costs of each such audit shall be borne by either Company or
      GMO
      depending upon the outcome of the audit, again in the same manner as described
      in Section 1.1(d)(iv). Any payments made by GMO to Owner under this
      Section 1.1(c)(vi) shall not relieve GMO of any obligation to make all of
      the other required Periodic Payments pursuant to this
      Section 1.1(c).

     

    
      
         

      

      
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    (vii) If
      GMO
      has deferred the payment required by Section 1.1(c)(iv) and made each of
      the payment(s) required by Sections 1.1(c)(v) and (vi), then not later than
      October 19, 2010, but in any event immediately after the securing of
      Project Financing, GMO must make the payment required by
      Section 1.1(c)(iv), less any Interim Financing Payments made under
      Section 1.1(c)(vi). If, however, by October 19, 2010, GMO has not
      secured its Project Financing having used its best efforts to secure said
      Project Financing, GMO may elect to pay Two Million Five Hundred Thousand
      Dollars ($2,500,000.00), less any payments made to Owner under
      Section 1.1(c)(vi), to Owner on or before that date and, if three percent
      (3%) of the Estimate is greater than Two Million Five Hundred Thousand Dollars
      ($2,500,000.00), GMO shall make that payment and shall pay to Owner one-half
      of
      the difference between Two Million Five Hundred Thousand Dollars
      ($2,500,000.00), less any Interim Financing Payments paid to Owner under
      Section 1.1(c)(vi), and three percent (3%) of the Estimate, on each of
      October 19, 2011 and October 19, 2012, respectively.

     

    (viii) On
      or
      before the earlier of (a) the first October 19th following GMO’s
      payment of the required Periodic Payments under Section 1.1(c)(iv) or
      Section 1.1(c)(vii), or (b) October 19, 2013, and on or before
      October 19th of each year thereafter, GMO shall pay to Owner a minimum
      advance royalty of Five Hundred Thousand Dollars ($500,000.00) (the “Advance
      Royalty”).

     

    3. The
      parties agree to modify the first full paragraph of Section 1.1(d) of the
      Lease, which begins on page 3 of the Lease and ends on page 4, to read
      as follows (and agree that the remainder of Section 1.1(d) is amended only
      as
      set forth in paragraphs 4-8 of this Amendment):

     

    (d) Production
      Royalty.
      Subject
      to GMO’s right of termination contained in Article 5, following the
      commencement of Commercial Production, GMO shall pay to Owner and to Exxon
      a
      production royalty on Molybdenum produced from the Property and sold (or deemed
      sold) by GMO (the “Production Royalty”). The Production Royalty payable to Exxon
      shall be paid as required under and in accordance with the terms of the Exxon
      Agreement. The Production Royalty payable to Owner shall be the greater of
      (i) Twenty-Five Cents ($0.25) per pound of molybdenum metal sold (or the
      equivalent thereof if some other Product is sold) from the Property (although
      the parties agree that in no event may any Production Royalty payment for any
      Products exceed the amount of Net Returns received by GMO for those Products),
      or (ii) three and one-half percent (3.5%) of the Net Returns (the “Base
      Percentage”), as defined below in Section 1.1(d)(i), and shall be paid
      according to the payment terms of Section 1.1(d)(iii). In addition,
      whenever the average Gross Value (as defined below) of any Products sold (or
      deemed sold) during any calendar quarter is equal to or greater than
      $12.00 per pound of molybdenum metal (or the equivalent thereof if some
      other Product is sold) but less than $15.00 per pound during that calendar
      quarter, Owner’s Production Royalty shall be increased by a full percentage
      point over and above the Base Percentage; and whenever the average Gross Value
      of any Products sold (or deemed sold) during any calendar quarter is equal
      to or
      greater than $15.00 per pound of molybdenum metal (or the equivalent
      thereof if some other Product is sold), Owner’s Production Royalty shall be
      increased by one and one-half full percentage points over and above the Base
      Percentage. For purposes of calculating the average Gross Value of Products
      sold
      (or deemed sold) during any calendar quarter, the total proceeds received (or
      deemed received) by GMO pursuant to the provisions of Section 1.1(d)(ii)
      for Products sold (or deemed sold) during that calendar quarter shall be divided
      by the total number of pounds of molybdenum metal (or the equivalent thereof
      if
      some other Product is sold) sold (or deemed sold) during that calendar quarter.
      In the event that during the term of this Agreement a gross proceeds or net
      smelter returns production royalty upon the production of minerals and payable
      to the United States government (a “Federal Royalty”) is imposed on Molybdenum
      and other Minerals specifically extracted from the Property, then the Base
      Percentage shall be reduced by the equivalent of fifteen percent (15%) of said
      Federal Royalty (adjusting the Federal Royalty to approximate a percentage
      of
      Net Returns as necessary). However, in no circumstances shall the Base
      Percentage be reduced by greater than one full percentage point (1%). Moreover,
      if subsequent to the imposition of the Federal Royalty, said royalty is
      eliminated as it applies to Molybdenum or other Minerals specifically extracted
      from the Property, then adjustments to the Base Percentage to account for the
      Federal Royalty shall no longer be made. If, subsequent to the imposition of
      the
      Federal Royalty, said royalty is reduced as it applies to Molybdenum or other
      Minerals specifically extracted from the Property, then the reduction to the
      Base Percentage shall be adjusted accordingly as of the date of said
      modification (subject to the maximum reduction of one percent (1%)). For
      Minerals other than Molybdenum, in the event GMO wishes to extract and sell
      said
      Minerals from the Property, then it shall notify Company in writing of its
      intention to extract those other Minerals and the parties shall negotiate in
      good faith a Net Returns Production Royalty on any other minerals consistent
      with Sections 1.1(a) and 4.5 of this Agreement. In the event that the
      parties are unable to reach agreement on a Net Returns Production Royalty on
      those other Minerals, then the matter shall be decided by binding arbitration
      pursuant to Section 12.17 of this Agreement. Without modifying the
      provisions of Section 4.5(c), the term “Minerals” for purposes of this Agreement
      shall include, without limitation, stone, sand, gravel and clay.

     

    
      
         

      

      
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    4. The
      parties agree that Section 1.1(d)(i)(c) is hereby deleted from the Lease,
      so that any production royalty imposed by the United States government shall
      not
      be a deduction in calculating Net Returns.

     

    5. The
      parties agree to revise the second sentence of Section 1.1(d)(v) of the
      Lease to read as follow:

     

    (v) Except
      as
      otherwise set forth in Section 1.1(d)(vi) below, Owner shall have no right
      to participate or obligation to share whatsoever in any price protection or
      hedging activities of GMO, including any sales of Products derived from the
      Property by GMO on the commodity market or otherwise, or in any profits received
      or losses suffered by GMO as a result of such marketing or hedging
      activities.

     

    6. The
      parties agree to add a new Section 1.1(d)(vi) to the Lease which reads as
      follows:

     

    (vi) If
      during
      the term of this Agreement, GMO enters into agreements with third parties for
      the presale of any Molybdenum Products produced by GMO from the Property
      (collectively, “Hedging Contracts”), then and in that event, Company agrees that
      the “Net Returns” and the “Gross Value” from which the Production Royalty is
      derived with respect to the Molybdenum Products sold under those Hedging
      Contracts shall be based on the price paid by that third party to GMO for
      Molybdenum Products, subject to the following:

     

    
      	 	
              (a)

            	
              The
                minimum price from which the Production Royalty is calculated shall
                be
                Twelve Dollars ($12.00) per pound of molybdenum metal (or the equivalent
                thereof), and if the actual price paid or credited to GMO by that
                third
                party is less than $12.00 per pound, those Molybdenum Products shall
                be
                deemed to have been sold for $12.00 per pound, and Gross Value shall
                be
                calculated based on that $12.00 per pound deemed sales
                price.

            

    

     

    
      
         

      

      
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              (b)

            	
              If
                any purchaser of Molybdenum Products under a Hedging Contract pays
                less
                than the Fair Market Value for those products, the maximum discount
                (for
                purposes of calculating Company’s Production Royalty) shall be twenty
                percent (20%) of the differential between the floor price payable
                by the
                purchaser and the Fair Market Value at the time of payment to GMO
                (the
                “Differential”), subject to the price floor described in
                Section 1.1(d)(vi)(a) above. In other words, regardless of the actual
                amount paid or credited to GMO under any Hedging Contract, and regardless
                of the actual discount (if any) from the Fair Market Value of Molybdenum
                Products received by any purchaser under a Hedging Contract, the
                deemed
                sales price on which the Production Royalty is to be calculated and
                paid
                shall be based on a discount of not more than 20% of the Differential
                at
                the time of such deemed sale, and that deemed sales price shall never
                be
                less than $12.00 per pound of molybdenum metal (or the equivalent
                thereof), even if a lower price is actually received by or credited
                to
                GMO. For purposes of this Section 1.1(d)(vi), “Fair Market Value”
                shall mean the price of molybdenum metal as quoted by Metals
                Week
                or
                some other reference source mutually agreeable to the
                parties.

            

    

     

    
      	 	
              (c)

            	
              The
                provisions of Sections 1.1(d)(vi)(a) and (b) above shall apply to
                Hedging
                Contracts which pertain to not more than fifty percent (50%) of the
                annual
                production of Molybdenum Products from the Property during any calendar
                year. If more than fifty percent (50%) of the annual production of
                Molybdenum Products from the Property during any calendar year is
                sold
                under Hedging Contracts, then, with respect to the production in
                excess of
                fifty percent (50%), GMO shall pay the Production Royalty based on
                the
                Fair Market Value of those Molybdenum Products at the time they are
                deemed
                sold. In other words, GMO may enter into Hedging Contracts which
                cover
                more than 50% of the annual production of Molybdenum Products from
                the
                Property, the Production Royalty with respect to 50% of the Molybdenum
                Products produced from the Property during that calendar year would
                be
                calculated as set forth in Sections 1.1(d)(vi)(a) and (b) above, and
                the Production Royalty on the remainder of the Molybdenum Products
                sold
                under Hedging Contracts during that calendar year would be calculated
                based on their Fair Market Value as set forth in this
                Section 1.1(d)(vi)(c). Not later than thirty (30) days prior to the
                end of each calendar year beginning with the calendar year during
                which
                the commencement of Commercial Production occurs, GMO shall provide
                to
                Owner a good faith estimate of the percentage of Molybdenum Products
                that
                will be sold from the Property under Hedging Contracts during the
                upcoming
                calendar year (if known). Along with the Production Royalty payment
                and
                accompanying statement for the last quarter of each such calendar
                year,
                GMO shall provide an accounting of the percentage of Molybdenum Products
                actually sold under Hedging Contracts during that calendar year,
                and shall
                include with that quarterly Production Royalty payment any additional
                amounts owed to Owner to account for Production Royalty payments
                that must
                be adjusted to meet the fifty percent (50%) limit described
                above.

            

    

     

    
      
         

      

      
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              (d)

            	
              By
                way of example (but not limitation), the Production Royalty would
                be
                payable under a Hedging Contract as
                follows:

            

    

     

    Example
      I

     

    
      	 	
              ·

            	
              Floor
                price of Molybdenum is $12.00 per pound to the
                purchaser.

            

    

     

    
      	 	
              ·

            	
              Fair
                Market Value of Molybdenum at time of deemed sale is $30.00 per
                pound.

            

    

     

    
      	 	
              ·

            	
              GMO
                agrees with purchaser to provide a 20% discount on the Differential.
                Differential is $18.00 per pound (30-12), which results in $3.60
                (20% of
                $18.00) off of the Fair Market Value for purposes of calculating
                the
                Production Royalty. The deemed sales price (for purposes of calculating
                Gross Value) is thus $26.40 per
                pound.

            

    

     

    
      
         

      

      
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              ·

            	
              Under
                this example “Gross Value” would be $26.40 per pound, and the applicable
                percentage Production Royalty would be 5%. To the extent Molybdenum
                Products sold under this Hedging Contract exceeded 50% of the annual
                production of Molybdenum Products from the Property, then for the
                excess
                Molybdenum Products sold under this Hedging Contract during that
                calendar
                year, “Gross Value” would be $30.00 per pound, and the applicable
                percentage Production Royalty would be 5%.

            

    

     

    Example
      II

     

    
      	 	
              ·

            	
              Floor
                price of Molybdenum is $10.00 per pound to the
                purchaser.

            

    

     

    
      	 	
              ·

            	
              Fair
                Market Value of Molybdenum at time of deemed sale is $35.00 per
                pound.

            

    

     

    
      	 	
              ·

            	
              GMO
                agrees with purchaser to provide a 30% discount on the Differential.
                Differential is $25.00 per pound (35-10), but for purposes of calculating
                Production Royalty, calculation is 20% (maximum discount) of $23.00
                per
                pound (35-12), which results in $4.60 off of the Fair Market Value.
                The
                deemed sales price (for purposes of calculating Gross Value) is thus
                $30.40 per pound.

            

    

     

    
      	 	
              ·

            	
              Under
                this example, “Gross Value” would be $30.40 per pound, and the applicable
                percentage Production Royalty would be 5%. To the extent Molybdenum
                Products sold under this Hedging Contract exceeded 50% of the annual
                production of Molybdenum Products from the Property, then for the
                excess
                Molybdenum Products sold under this Hedging Contract during that
                calendar
                year, “Gross Value” would be $35.00 per pound, and the applicable
                percentage Production Royalty would be 5%.

            

    

     

    
      
         

      

      
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    Example
      III

     

    
      	 	
              ·

            	
              Floor
                price of Molybdenum is $10.00 per pound to the
                purchaser.

            

    

     

    
      	 	
              ·

            	
              Fair
                Market Value of Molybdenum at that time is $15.50 per
                pound.

            

    

     

    
      	 	
              ·

            	
              GMO
                agrees with purchaser to provide a 20% discount on the Differential.
                Differential is $5.50 per pound (15.50 - 10), which results in $1.10
                (20%
                of $5.50) off of the Fair Market Value for purposes of calculating
                the
                Production Royalty. The deemed sales price (for purposes of calculating
                Gross Value) is thus $14.40 per
                pound.

            

    

     

    
      	 	
              ·

            	
              Under
                this example, “Gross Value” would be $14.40 per pound, and the applicable
                percentage Production Royalty would be 4.5%. To the extent Molybdenum
                Products sold under this Hedging Contract exceeded 50% of the annual
                production of Molybdenum Products from the Property, then for the
                excess
                Molybdenum Products sold under this Hedging Contract during that
                calendar
                year, “Gross Value” would be $15.50 per pound, and the applicable
                percentage Production Royalty would be
                5%.

            

    

     

    Example
      IV

     

    
      	 	
              ·

            	
              Floor
                price of Molybdenum is $16.00 per pound to the
                purchaser.

            

    

     

    
      	 	
              ·

            	
              Fair
                Market Value of Molybdenum at time of deemed sale is $14.00 per
                pound.

            

    

     

    
      	 	
              ·

            	
              The
                deemed sales price (for purposes of calculating Gross Value) is $16.00
                per
                pound.

            

    

     

    
      	 	
              ·

            	
              Under
                this example, “Gross Value” would be $16.00 per pound, and the applicable
                percentage Production Royalty would be 5%. To the extent Molybdenum
                Products sold under this Hedging Contract exceeded 50% of the annual
                production of Molybdenum Products from the Property, then for the
                excess
                Molybdenum Products sold under this Hedging Contract during that
                calendar
                year, “Gross Value” would be $14.00 per pound, and the applicable
                percentage Production Royalty would be 4.5%.

            

    

     

    
      
         

      

      
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    Example
      V

     

    
      	 	
              ·

            	
              Floor
                price of Molybdenum is $11.00 per pound to the
                purchaser.

            

    

     

    
      	 	
              ·

            	
              Fair
                Market Value of Molybdenum at time of deemed sale is $10.00 per
                pound.

            

    

     

    
      	 	
              ·

            	
              The
                deemed sales price (for purposes of calculating Gross Value) is $12.00
                per
                pound.

            

    

     

    
      	 	
              ·

            	
              Under
                this example, “Gross Value” would be $12.00 per pound, and the applicable
                percentage Production Royalty would be 4.5%. To the extent Molybdenum
                Products sold under this Hedging Contract exceeded 50% of the annual
                production of Molybdenum Products from the Property, then for the
                excess
                Molybdenum Products sold under this Hedging Contract during that
                calendar
                year, “Gross Value” would be $10.00 per pound, and the applicable
                percentage Production Royalty would be 3.5%.

            

    

     

    
      	 	
              (e)

            	
              The
                parties agree that quarterly Gross Value computations shall be made
                separately for (1) Molybdenum Products sold under Hedging Contracts
                during
                each calendar quarter and (2) other Molybdenum Products sold during
                that
                same calendar quarter, and the percentage royalty payable shall be
                calculated separately for each category of Molybdenum
                Products.

            

    

     

    7. The
      parties agree to add a new Section 1.1(d)(vii) to the Lease which reads as
      follows:

     

    (vii) If
      GMO
      builds a roasting facility which is intended by GMO to process Molybdenum
      concentrates produced from the Property, then GMO may process Molybdenum from
      properties other than the Property in that roasting facility (“Custom Roasting”)
      without any Production Royalty payment obligations to Company with respect
      to
      that Molybdenum from properties other than the Property, if and only
      if:

     

    
      	 	
              (a)

            	
              Any
                “Custom Roasting” complies with all applicable federal, state and local
                laws, rules, regulations, and is performed in accordance with all
                governmental licenses, permits and approvals and the terms of this
                Agreement; and

            

    

     

    
      
         

      

      
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              (b)

            	
              Such
                “Custom Roasting” is conducted and is terminated prior to the commencement
                of Commercial Production from the Property and the conduct of such
                Custom
                Roasting is not a reason for the delay of the commencement of Commercial
                Production from the Property.

            

    

     

    
      	 	
              (c)

            	
              Notwithstanding
                the provisions of Sections 1.1(d)(vii)(a) and (b), GMO may conduct
                Custom
                Roasting operations after the commencement of Commercial Production
                from
                the Property if and only if there is excess roasting capacity after
                processing all the Molybdenum produced from the Property. Excess
                roasting
                capacity may exist as the result of an involuntary reduction by GMO
                of
                planned production levels at the Property as the direct result of
                an event
                which GMO could not have reasonably foreseen. Thus, in that situation,
                Custom Roasting may occur. GMO may not, however, intentionally reduce
                the
                levels of production of Molybdenum from the Property to create excess
                roasting capacity.

            

    

     

    
      	 	
              (d)

            	
              If
                such “Custom Roasting” operations occur in accordance with
                Section 1.1(d)(vi)(c) above, then GMO shall insure that any
                commingling of Molybdenum Products from any other property with those
                produced from the Property is conducted in accordance with the provisions
                of Section 4.5(d).

            

    

     

    8. The
      parties agree to add a new Section 1.1(d)(viii) to the Lease which reads as
      follows:

     

    (viii) If
      at any
      time during the term of this Agreement, GMO has not placed the Property into
      Commercial Production for reasons other than GMO’s failure to secure Project
      Financing or permitting for the project (GMO having used its best efforts to
      obtain the same), but is conducting commercial mining and/or processing
      operations from its “Hall-Tonopah” property (as defined on the attached
      Schedule A), then in such event, Company has the right, in its sole
      discretion, to demand that GMO pay to Company a production royalty of ten cents
      ($.10) per pound of Molybdenum Products produced from Hall-Tonopah. Such
      production royalty payments shall be made in accordance with the provisions
      of
      Sections 1.1(d)(iii)-(v) of this Agreement. The obligation to pay the production
      royalty from Hall-Tonopah as provided herein is absolute and failure to pay
      said
      royalty to Company, upon its request, shall be a material breach of this
      Agreement and shall entitle Company to assert any remedies to which it is
      entitled at law, in equity, or under this Agreement, including without
      limitation termination of the Agreement. The amount of said royalty payments
      shall be recoupable from the Production Royalty payable to Owner from the
      Property in accordance with the provisions of Section 1.5. However, in no
      event shall GMO be required to pay to Company in any calendar year a total
      amount of production royalty from Hall-Tonopah greater than it is required
      to
      pay to Company during that calendar year pursuant to Section 1.1(c) of this
      Agreement. The obligation to pay a production royalty to Company under this
      Section 1.1(d)(viii), however, shall not relieve GMO of its obligation to
      timely make all payments required under Section 1.1(c). GMO’s obligation
      pursuant to this Section 1.1(d)(viii) shall terminate upon the termination
      of this Agreement or upon the commencement of Commercial Production from the
      Property. The parties agree to record in the official records of Nye County,
      Nevada, a memorandum form of GMO’s obligation to pay Company a production
      royalty from the production of Molybdenum at Hall-Tonopah under certain
      circumstances, as described in this Section 1.1(d)(viii).

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    9. The
      parties agree that Section 1.3 of the Lease is revised to read as
      follows:

     

    1.3 Project
      Financing.
      For
      purposes of this Agreement, the term “Project Financing” shall mean the securing
      of funds by GMO on terms and conditions satisfactory to it, such funds to be
      dedicated to the development of the Property in accordance with the Estimate.
      For purposes of this Agreement, GMO shall be deemed to have “secured” Project
      Financing on the earlier of either (a) the receipt of funds which comprise
      at least fifty percent (50%) of GMO’s projected costs (as set forth in a
      preliminary Estimate which shall be delivered by GMO to Owner not later than
      March 31, 2008) required for GMO to put the Property into Commercial Production
      (as defined in Section 1.7) or (b) the Commencement of Construction of
      the Project. The parties acknowledge and agree that the preliminary Estimate
      shall be used only for the purpose of determining when Project Financing has
      been secured, that the preliminary Estimate referred to in this Section 1.3
      shall not constitute the Estimate that GMO is required to deliver pursuant
      to
      Section 1.2, and that the projected cost figures in the preliminary Estimate
      may
      be different than those set forth in the Estimate. The phrase “Commencement of
      Construction of the Project” is hereby defined as the commencement of
      construction of the mine, mill or related facilities at the Property in
      accordance with the project plan, but only after issuance by the BLM of a Record
      of Decision approving the Plan of Operations for development and mining at
      the
      Property. GMO shall notify Owner immediately after it has secured Project
      Financing pursuant to the provisions of this Section 1.3.

     

    10. The
      parties agree that all references in Section 1.4 of the Lease to
      Sections 1.1(c)(iii) and 1.1(c)(v) are revised to refer to
      Sections 1.1(c)(iv), 1.1(c)(vi) and 1.1(c)(vii).

     

    11. The
      parties agree that the references in Sections 1.5(a), (b) and (c) of the
      Lease to Sections 1.1(c)(iii), 1.1(c)(v) and 1.1(c)(vi) are revised to
      refer to Sections 1.1(c)(iv), 1.1(c)(vi) and 1.1(c)(vii),
      respectively.

     

    12. The
      parties agree to delete from the Lease the third to the last full sentence
      of
      Section 4.4(j).

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    13. The
      parties agree that Section 6.1 of the Lease is revised to read as follows:

     

    6.1 After-Acquired
      Property.
      During
      the term of this Agreement, GMO may locate or acquire additional patented and
      unpatented mining claims or fee lands in the vicinity of the Property (“After
      Acquired Property”). In the event that GMO locates or acquires any such
      interests in real property wholly or partially within two (2) miles from the
      exterior boundaries of the Property (the “Area of Interest”), GMO shall promptly
      notify the Company and provide the Company with a copy of any acquisition
      documents and other data and information pertaining to such After Acquired
      Property. The Company shall have thirty (30) days from and after it receives
      such information to notify GMO whether or not the Company desires that such
      After Acquired Property shall become part of the Property under this Agreement,
      and if the Company timely provides such notice then such After Acquired Property
      shall be burdened by the obligation to pay the Production Royalty to Owner
      (and
      Exxon if applicable) as provided herein. In addition, the Company may at any
      time during the Term request that GMO convey any such After Acquired Property
      to
      Company. Upon such request, such After Acquired Property shall be immediately
      conveyed to the Company by special warranty deed from GMO, but remain part
      of
      the Property under this Agreement. The parties agree that any interest in
      unpatented mining claims or other real property (a) conveyed by GMO to the
      Company during the Option Period (the “Conveyed Claims”) or (b) owned or
      held by GMO as of the Effective Date and wholly or partially within the Area
      of
      Interest (the “GMO Claims”) shall be treated as part as of the Property under
      this Agreement, burdened by the obligation to pay the Production Royalty to
      Owner (and Exxon if applicable) as provided herein. Upon the execution of this
      Agreement, GMO, at Company’s request, shall convey the GMO Claims to the Company
      by special warranty deed. Thereafter, if during the term of this Agreement
      GMO
      desires to terminate this Agreement with respect to any of the GMO Claims or
      the
      Conveyed Claims, GMO shall provide written notice to the Company, including
      in
      such notice a written reminder to the Company of its right to request that
      the
      GMO Claims be conveyed to it, and Company shall have the right to request that
      any or all of the GMO Claims be conveyed to Company. If no such request is
      received by GMO prior to the termination of this Agreement, then such claims
      shall no longer be subject to this Agreement, although the provisions of the
      last sentence of Section 5.1 and all of Sections 5.2-5.6 of the Agreement shall
      apply to those claims.

     

    14. The
      parties agree that the first sentence of Section 9.1 of the Agreement is
      revised to read as follows:

     

    GMO
      agrees that, not later than October 31, 2007, it will submit to Owner and
      to the appropriate governmental agencies a disposal and remediation plan
      pursuant to which it commits to a timeline for taking such reasonable actions
      as
      are necessary under applicable Environmental Laws to satisfy certain existing
      environmental conditions at the Property, as more specifically set forth on
      Exhibit B attached hereto and incorporated herein by
      reference.

     

    15. The
      parties agree that Section 12.3 of the Lease is revised to read as
      follows:

     

    12.3 Successors
      and Assigns.
      The
      terms of this Agreement shall bind and inure to the benefit of the parties
      and
      their respective permitted successors, heirs and assigns, whether by merger,
      consolidation, amalgamation, reorganization, sale of assets or otherwise. GMO
      shall not assign or otherwise convey its rights or obligations under this
      Agreement to any third party without the prior written consent of the Company,
      which such consent the Company may withhold in its sole discretion; provided
      however, that (a) if such an assignment takes the form of a pledge by GMO of
      its
      interest in this Agreement for purposes of obtaining Project Financing to raise
      funds for the conduct of Operations on or for the benefit of the Property,
      the
      Company’s consent to such an assignment may not be unreasonably withheld; and
      (b) no such consent shall be required for an assignment and delegation by
      GMO of all of its rights and obligations under this Agreement to a wholly-owned
      subsidiary of GMO (provided that such subsidiary simultaneously acquires all
      of
      GMO’s other assets on the Property). In the event of any such assignment, the
      assignee shall agree in writing to be bound by all of the terms and conditions
      of this Agreement. Any such assignment shall not relieve GMO of any of its
      obligations or liabilities under this Agreement. The Company may convey the
      Property or its interest in this Agreement to any third party as long as such
      third party agrees in writing to be bound by all of the terms and conditions
      of
      this Agreement. GMO may enter into, and Company shall not withhold its consent
      to, a joint venture or joint operating agreement between GMO and a third party
      in order for GMO to obtain Project Financing for the conduct of Operations
      on or
      for the benefit of the Property if it is reasonably demonstrated that (a) the
      proposed third party is financially sound and able to participate in the
      financing or management and operation of the project upon the terms proposed
      by
      GMO and (b) the creation of the joint venture increases the likelihood of either
      the commencement or acceleration of the commencement of Commercial Production
      from the Property.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    16. The
      parties agree that all cross-references to other Sections in any Section of
      the
      Lease are revised as necessary to reflect the provisions of this
      Amendment.

     

    17. As
      amended by this Amendment, the parties hereby confirm and agree that the Lease
      is in full force and effect. Capitalized terms used but not defined in this
      Amendment shall have the meaning ascribed to them in the Lease. This Amendment
      may be executed in two or more counterparts which together shall constitute
      a
      single, original instrument.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    In
      witness whereof, the parties have executed this Amendment to Lease Agreement
      effective as of the 20th day of November, 2007.

    
      	 	 	 
	 	
              General
                Moly, Inc., a Delaware corporation

            
	 
 	 
 	 
 
	 	By:  	/s/
              Bruce D. Hansen 
	 	
              

              Name:
                Bruce
                D. Hansen 

              Title:
                Chief
                Executive Officer 

              Date:
                November
                20, 2007 

            

    

    

      	 	 	 
	 	
              Mount
                Hope Mines, Inc., a Colorado corporation

            
	 
 	 
 	 
 
	 	By:  	/s/
              Stephen Drimmer 
	 	
              

              Name:
                Stephen
                Drimmer 

              Title:
                President 

              Date:
                November
                20, 2007 

            

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    Schedule
      A

    

    The
      Hall
      - Tonopah Property

    

    The
      Hall
      - Tonopah Property consists of 49 patented lode claims, 16 patented millsite
      claims and approximately 5051 acres of fee owned land, all situated in Nye
      County, Nevada.

    

    The
      patented lode claims, which are described in the table set forth below, are
      located in T5N, R42E, Sections 4, 5, 6, 7, 8 and T6N, R42E, Sections 32 and
      33.  The fee owned land is contained within:

    

    T5N,
      R41E, portions of Sections 1, 2, 11, 12, 13 and 14;

    T5N,
      R42E, portions of Sections 6, 7 and 18;

    T5N,
      R41E, portions of Sections 30, 31 and 32;

    T6N,
      R41E, portions of Sections 25, 26, 35 and 36.

    

    The
      total
      area covered within the project boundary by claims and fee owned land is
      approximately 6,057 acres.  

    

    Patented
      Lode Claims

     

      
        	
                Claim
                  Name

              	 	
                Patent/Mineral
                  Survey #

              
	
                Moly
                  5

              	 	
                4883

              
	
                Moly
                  7

              	 	
                4883

              
	
                Moly
                  9

              	 	
                4883

              
	
                Moly
                  11

              	 	
                4883

              
	
                Treasure
                  Hill No. 7

              	 	
                4883

              
	
                Treasure
                  Hill No. 8

              	 	
                4883

              
	
                Treasure
                  Hill No. 9

              	 	
                4883

              
	
                Treasure
                  Hill No. 10

              	 	
                4883

              
	
                Treasure
                  Hill No. 11

              	 	
                4914

              
	
                Treasure
                  Hill No. 14

              	 	
                4913

              
	
                Treasure
                  Hill No. 15

              	 	
                4913

              
	
                Treasure
                  Hill No. 16

              	 	
                4913

              
	
                Treasure
                  Hill No. 17

              	 	
                4883

              
	
                Treasure
                  Hill No. 18

              	 	
                4883

              
	
                Treasure
                  Hill No. 19

              	 	
                4883

              
	
                Treasure
                  Hill No. 20

              	 	
                4914

              
	
                Chicago
                  No. 1 Mine

              	 	
                4913

              
	
                Chicago
                  No. 2 Mine

              	 	
                4913

              
	
                Chicago
                  No. 3 Mine

              	 	
                4883

              
	
                Chicago
                  Extension No. 1 Mine

              	 	
                4913

              
	
                Chicago
                  Extension No. 2 Mine

              	 	
                4883

              
	
                Chicago
                  Extension No. 3 Mine

              	 	
                4883

              
	
                Smuggler

              	 	
                2284

              
	
                Sheridan

              	 	
                2285

              
	
                Moley
                  Gibson Mine

              	 	
                2118

              
	
                Florence
                  Mine

              	 	
                2117

              
	
                Scott
                  No. 6

              	 	
                4914

              
	
                Scott
                  No. 7

              	 	
                4914

              
	
                Scott
                  No. 12

              	 	
                4913

              
	
                Daisy
                  1

              	 	
                4919

              
	
                Daisy
                  2

              	 	
                4913

              
	
                Daisy
                  5

              	 	
                4913

              
	
                Lee
                  No. 1

              	 	
                4883

              
	
                Lee
                  No. 2

              	 	
                4883

              
	
                Lee
                  No. 3

              	 	
                4883

              
	
                Lee
                  No. 4

              	 	
                4883

              
	
                Lee
                  No. 5

              	 	
                4914

              
	
                Lee
                  No. 6

              	 	
                4914

              
	
                Lee
                  No. 7

              	 	
                4913

              
	
                Lee
                  No. 8

              	 	
                4913

              
	
                Lee
                  No. 9

              	 	
                4913

              
	
                Lee
                  No. 10

              	 	
                4913

              
	
                Lee
                  No. 11

              	 	
                4913

              
	
                Gray
                  Side

              	 	
                3481

              
	
                Utica

              	 	
                3481

              
	
                Burbank
                  1

              	 	
                2115

              
	
                Burbank
                  2

              	 	
                2116

              
	
                Burbank
                  4

              	 	
                2286

              
	
                St.
                  George Lode

              	 	
                37A(1699B)

              

      

    

    

    Patented
      Millsite Claims

    Consist
      of ACC 17 through 31 and AAC 35

     

    
      
         

      

      
        A-1EXHIBIT
      10.6

     

    SECURITIES
      PURCHASE AGREEMENT

     

    THIS
      SECURITIES PURCHASE AGREEMENT (this “Agreement”)
      is
      made as of this 19th
      day of
      November, 2007, by and between General Moly, Inc., a Delaware corporation (the
      “Company”),
      and
      ArcelorMittal S.A. (“Purchaser”).
      

     

    WHEREAS,
      the Company desires to issue and sell to Purchaser and Purchaser desires to
      acquire from the Company 8,256,699 shares (the “Offered
      Shares”)
      of the
      Company’s common stock, par value $0.001 per share (the “Common
      Stock”),
      constituting upon issuance 10% of the shares of Common Stock outstanding on
      such
      date calculated on a fully diluted basis, at a price of $8.50 per share, for
      the
      aggregate consideration of $70,181,941.50 (the “Purchase
      Price”),
      on
      the terms and subject to the conditions herein; 

     

    WHEREAS,
      the Company and Purchaser desire to set forth certain matters to which they
      have
      agreed relating to the Offered Shares; and

     

    WHEREAS,
      concurrently with the execution of this Agreement, the Company and Purchaser
      will enter into a letter of intent with respect to (a) the conclusion of an
      offtake agreement for the purchase by Purchaser of molybdenum produced at the
      Mount Hope mine and (b) discussion regarding a potential convertible loan from
      Purchaser to the Company as financing for development of the Company’s projects
      in relation to molybdenum extraction, in the form attached hereto as Exhibit
      A
      (the “Letter
      of Intent”).

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants contained
      in this Agreement, the parties, intending to be legally bound, agree as
      follows:

     

    ARTICLE
      I

     

    ISSUANCE
      OF SHARES; CLOSING

     

    SECTION
      1.1 Purchase
      and Sale of Offered Shares.
      On the
      terms and subject to the conditions of this Agreement and in reliance upon
      the
      representations and warranties contained herein, Purchaser agrees to purchase
      from the Company, and the Company agrees to sell to Purchaser, on the Closing
      Date (as hereinafter defined), the Offered Shares for the Purchase Price.

     

    SECTION
      1.2 Closing.
      Subject
      to the satisfaction or waiver of the conditions set forth in Article
      VII,
      the
      completion of the purchase and sale of the Offered Shares (the “Closing”)
      shall
      occur at 10:00 a.m. local time at the offices of Kirkpatrick & Lockhart
      Preston Gates Ellis LLP, Seattle, Washington, on the second business day after
      the satisfaction or waiver of the conditions set forth in Article
      VII
      (other
      than those that by their terms are to be satisfied or waived at the Closing),
      or
      at such other location, date and time as may be mutually agreed upon by the
      Company and Purchaser. The date of the Closing is referred to herein as the
      “Closing
      Date”.
      

     

    SECTION
      1.3 Closing
      Deliveries by the Company.
      At the
      Closing, the Company shall deliver or cause to be delivered to
      Purchaser:

     

    (a) duly
      executed certificates evidencing the Offered Shares, registered in the name
      of
      Purchaser or an affiliate of Purchaser designated by Purchaser in writing no
      less than three business days prior to Closing;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b) a
      receipt
      for the Purchase Price; and

     

    (c) the
      documents, instruments and writings required to be delivered by the Company
      pursuant to Section
      7.02.

     

    SECTION
      1.4 Closing
      Deliveries by Purchaser.
      At the
      Closing, Purchaser shall deliver or cause to be delivered to the
      Company:

     

    (a) the
      Purchase Price by wire transfer in immediately available funds to an account
      specified by the Company in writing no less than three business days prior
      to
      the Closing; and

     

    (b) the
      documents, instruments and writings required to be delivered by Purchaser
      pursuant to Section
      7.03.

     

    ARTICLE
      II

     

    REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

     

    The
      Company hereby represents and warrants to Purchaser as follows:

     

    SECTION
      2.1 Organization
      and Standing.
      Each of
      the Company and each of its subsidiaries is a corporation duly organized,
      validly existing and in good standing under the laws of the jurisdiction of
      its
      incorporation and has all requisite corporate power and authority necessary
      for
      it to own or lease its properties and assets and to carry on its business as
      it
      is now being conducted (and, to the extent described therein, as described
      in
      the SEC Reports (as defined in Section 2.5)).
      Each
      of the Company and each of its subsidiaries is duly qualified to transact
      business and is in good standing in each jurisdiction in which the character
      of
      the properties owned or leased by it or the nature of its businesses makes
      such
      qualification necessary, except where any failure to so qualify or be in good
      standing, individually or in the aggregate, would not have a material adverse
      effect on the business, assets, operations, properties or condition (financial
      or otherwise) of the Company and its subsidiaries, taken as a whole, or on
      the
      Company’s ability to consummate the transactions contemplated by this Agreement
      (a “Material
      Adverse Effect”).
      

     

    SECTION
      2.2 Capitalization.
      The
      authorized capital stock of the Company consists of 200,000,000 shares of Common
      Stock and 10,000,000 shares of preferred stock, par value $0.001 per share
      (“Preferred
      Stock”).
      As of
      November 15, 2007, (i) 56,986,882 shares of Common Stock are issued and
      outstanding and (ii) no shares of Common Stock are held in the treasury of
      the
      Company or by any subsidiary of the Company. As of November 15, 2007, 4,622,500
      shares of Common Stock are issuable (and such number is reserved for issuance)
      upon exercise of outstanding stock options granted pursuant to the Idaho General
      Mines, Inc. 2006 Equity Incentive Plan and the Idaho General Mines, Inc. 2003
      Stock Option Plan (collectively, the “Plans”)
      and
      outside of the Plans, and 12,700,907 shares of Common Stock are issuable upon
      exercise of outstanding warrants (including a warrant to purchase 1,000,000
      shares that the Company intends to issue to Coghill Management in connection
      with the Closing under this agreement (the “CCM
      Warrant”)
      to
      purchase Common Stock (the “Warrants”).
      Since
      November 15, 2007, the Company has not issued any shares of its capital stock,
      or securities convertible into or exchangeable or exercisable for such capital
      stock, other than those shares of capital stock reserved for issuance as set
      forth in this Section
      2.2.
      As of
      the date hereof, no shares of Preferred Stock are issued and outstanding. The
      Company has no stock option, incentive or similar plan other than the Plans.
      All
      of the outstanding shares of capital stock of the Company have been duly and
      validly authorized and issued, and are fully paid and nonassessable. The Offered
      Shares have been duly and validly authorized and when issued, sold and delivered
      by the Company in accordance with this Agreement, shall be validly issued,
      fully
      paid and nonassessable and not subject to preemptive rights. Except as set
      forth
      in this Section 2.2
      or the
      SEC Reports, there are no outstanding options, warrants, conversion rights,
      subscription rights, preemptive rights, rights of first refusal or other rights
      or agreements of any nature outstanding to subscribe for or to purchase any
      shares of Common Stock of the Company or any other securities of the Company
      of
      any kind binding on the Company. The issuance by the Company of the Offered
      Shares is not subject to any preemptive rights, rights of first refusal or
      other
      similar limitation or any other claim, lien, charge, encumbrance or security
      interest applicable to the assets of the Company. There are no restrictions
      upon
      the voting or transfer of any shares of Common Stock pursuant to the Company’s
      certificate of incorporation or bylaws. Except as provided herein or the SEC
      Reports, there are no agreements or other obligations (contingent or otherwise)
      that may require the Company to repurchase or otherwise acquire any shares
      of
      its Common Stock.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    SECTION
      2.3 Authorization;
      Enforceability.
      The
      Company has the corporate power and authority to execute, deliver and perform
      this Agreement and has taken all necessary corporate action to authorize the
      execution, delivery and performance by it of, and the consummation of the
      transactions contemplated by, this Agreement. No other corporate proceeding
      on
      the part of the Company is necessary, and no consent of any shareholder of
      the
      Company is required, for the valid execution and delivery by the Company of
      this
      Agreement, and the performance and consummation by the Company of the
      transactions contemplated by this Agreement to be performed by the Company.
      The
      Company has duly executed and delivered this Agreement. Assuming the due
      execution and delivery of this Agreement by Purchaser, this Agreement
      constitutes a legal, valid and binding obligation of the Company, enforceable
      against the Company in accordance with its terms, except as enforceability
      may
      be limited by applicable bankruptcy, insolvency, reorganization, moratorium
      or
      similar laws affecting the enforcement of creditors’ rights generally and by
      general principles of equity (regardless of whether enforcement is sought in
      a
      proceeding in equity or at law).

     

    SECTION
      2.4 No
      Violation; Consents.
      

     

    (a) The
      execution, delivery and performance by the Company of this Agreement and the
      consummation of the transactions contemplated hereby to be performed by the
      Company do not and will not (i) assuming that all consents, approvals,
      authorizations and other actions described in subsection (b) have been obtained
      and all filings and obligations described in subsection (b) have been made,
      conflict with, violate or contravene the applicable provisions of any law,
      statute, rule, regulation, order, writ, injunction, judgment or decree of any
      court or any federal or state government or political subdivision thereof and
      any agency or other entity exercising executive, legislative, judicial,
      regulatory or administrative functions of or pertaining to government (a
“Governmental
      Authority”)
      to or
      by which the Company or any of its subsidiaries or any of its or their
      respective properties or assets is bound, (ii) violate, result in a breach
      of or constitute (with due notice or lapse of time or both) a default or give
      rise to an event of acceleration under, or give to others any right of
      termination, amendment, or cancellation of, or give to others a right to require
      any payment to be made under, any contract, lease, license, permit, loan or
      credit agreement, mortgage, security agreement, trust indenture or other
      agreement or instrument to which the Company is a party or by which it or any
      of
      its subsidiaries is bound or to which any of their respective properties or
      assets is subject, nor result in the creation or imposition of any lien,
      security interest, charge or encumbrance of any kind upon any of the properties,
      assets or capital stock of the Company or any of its subsidiaries, or
      (iii) conflict with or violate any provision of the organizational and
      other governing documents of the Company or any of its
      subsidiaries.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (b) Subject
      to the accuracy of Purchaser’s representations and warranties herein, no
      consent, approval, authorization or order of, or filing or registration with,
      any court or Governmental Authority or other person is required to be obtained
      or made by the Company for the execution, delivery and performance of this
      Agreement or the consummation of any of the transactions contemplated hereby
      except for (i) the pre-merger notification requirements of the Hart-Scott-Rodino
      Antitrust Improvements Act of 1976, as amended (the “HSR
      Act”),
      and
      (ii) any filings required to be made under the rules and regulations of the
      American Stock Exchange (“AMEX”).
      

     

    SECTION
      2.5 SEC
      Reports; Financial Condition; No Adverse Changes.
      

     

    (a) The
      audited and unaudited financial statements of the Company and the related notes
      thereto contained in the SEC Reports (the “Financial
      Statements”)
      present fairly the financial position, results of operations and cash flows
      of
      the Company and its subsidiaries at such date and for the periods set forth
      therein. The Financial Statements, including the related schedules and notes
      thereto, have been prepared in accordance with generally accepted accounting
      principles in the United States as in effect on the date of filing of such
      documents with the SEC, applied on a consistent basis unless otherwise expressly
      stated therein except for changes concurred in by the Company’s independent
      public auditors. Except as disclosed in (i) the Company’s Annual Report on
      Form 10-KSB for the year ended December 31, 2006, as amended (the
“10-KSB”),
      and
      (ii) the other reports on Form 10-QSB, as amended, and Form 8-K filed by the
      Company with the Securities and Exchange Commission (“SEC”)
      since
      December 31, 2006 (collectively, the documents in (i) and (ii) above are
      referred to as the “SEC
      Reports”),
      during the period from December 31, 2006 to and including the date hereof,
      there
      has been no sale, transfer or other disposition by the Company of any material
      part of the business, property or securities of the Company (other than the
      grant of options and warrants and shares of Common Stock issued upon the
      exercise of outstanding options and warrants) and no purchase or other
      acquisition of any business, property or securities by the Company material
      in
      relation to the financial condition of the Company.

     

    (b) Except
      and to the extent set forth on the balance sheet of the Company and its
      subsidiaries as at September 30, 2007 included in the Company Form 10-QSB for
      the quarterly period ended September 30, 2007, neither the Company nor any
      of
      its subsidiaries has any liability or obligation of any nature, except for
      liabilities or obligations incurred in the ordinary course of business
      consistent with past practice since September 30, 2007 that would not,
      individually or in the aggregate, reasonably be expected to have a Material
      Adverse Effect.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (c) Since
      December 31, 2006, there has not been any development or event, or any action
      of
      any Governmental Authority, that, individually or in the aggregate, has had
      or
      could reasonably be expected to have a Material Adverse Effect.

     

    SECTION
      2.6 Securities
      Laws.
      All
      notices, filings, registrations, or qualifications under state securities or
      “blue sky” laws, which are required in connection with the offer, issuance, sale
      and delivery of the Offered Shares pursuant to this Agreement, have been, or
      will be, completed by the Company.

     

    SECTION
      2.7 No
      Default.
      The
      Company is not, and, immediately after the consummation of the transactions
      contemplated hereby to be performed by the Company, the Company will not be,
      in
      default of (whether upon the passage of time, the giving of notice or both),
      any
      term of its charter document or its bylaws or any provision of any security
      issued by the Company, or of any agreement, instrument or other undertaking
      to
      which the Company is a party or by which it or any of its properties or assets
      is bound, or the applicable provisions of any law, statute, rule, regulation,
      order, writ, injunction, judgment or decree of any court or Governmental
      Authority to or by which the Company or any of its properties or assets is
      bound, which default, either individually or in the aggregate, could reasonably
      be expected to have a Material Adverse Effect.

     

    SECTION
      2.8 Intellectual
      Property.
      The
      Company and its subsidiaries have all licenses, copyrights and trademarks that
      are needed to conduct the business of the Company and its subsidiaries as it
      is
      now being conducted (the “Intellectual
      Property Rights”).
      To
      the Company’s knowledge, the Intellectual Property Rights that the Company
      (and/or its subsidiaries) owns are valid and enforceable. To the Company’s
      knowledge, the use of such Intellectual Property Rights by the Company (and/or
      its subsidiaries) does not infringe upon or conflict with any right of any
      third
      party, and neither the Company nor any of its subsidiaries has received notice,
      written or otherwise, of any such infringement or conflict other than with
      respect to alleged infringements or conflicts that, individually or in the
      aggregate, if determined adversely to the Company would not have a Material
      Adverse Effect. The Company has no knowledge of any infringement of its
      Intellectual Property Rights by any third party. 

     

    SECTION
      2.9 No
      Litigation.
      Except
      as disclosed in the SEC Reports, no litigation, proceeding, other action or
      claim (including those for unpaid taxes), or environmental proceeding against
      the Company or any of its subsidiaries is pending, or, to the Company’s
      knowledge, threatened or contemplated, that, if determined adversely, could,
      individually or in the aggregate, reasonably be expected to have a Material
      Adverse Effect on the Company.

     

    SECTION
      2.10 Permits.
      Except
      as disclosed in the SEC Reports, the Company and each of its subsidiaries is
      in
      possession of all franchises, grants, authorizations, licenses, permits,
      easements, variances, exemptions, consents, certificates, approvals and orders
      necessary to own, lease and operate its properties and to carry on its business
      as it is now being conducted (collectively, the “Company
      Permits”),
      and
      all such Company Permits are valid, and in full force and effect, and there
      is
      no action pending or, to the knowledge of the Company, threatened, regarding
      suspension or cancellation of any of the Company Permits except for such Company
      Permits the failure to possess which, or the cancellation or suspension of
      which, would not, individually or in the aggregate, have a Material Adverse
      Effect. To the knowledge of the Company, neither the Company nor any of its
      subsidiaries is in material conflict with, or in material default or material
      violation of, any of the Company Permits. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    SECTION
      2.11 Subsidiaries.
      As of
      the date hereof, the Company has no subsidiaries other than those set forth
      in
      the SEC Reports. 

     

    SECTION
      2.12 Related
      Party Transactions.
      Except
      as disclosed in the SEC Reports and for such transactions for which disclosure
      pursuant to Regulation S-B would not be required in an SEC Report, none of
      the
      officers, directors, employees or 5% or greater shareholders of the Company
      is
      presently a party to any transaction with the Company or any of its subsidiaries
      (other than for services as employees, officers and directors), including any
      contract, agreement or other arrangement providing for the furnishing of
      services to or by, providing for rental of real or personal property to or
      from,
      or the advances of money or otherwise requiring payments to or from any such
      officer, director, employee or shareholder or, to the knowledge of the Company,
      any corporation, partnership, trust or other entity in which any such officer,
      director, employee or shareholder has a substantial interest or is an officer,
      director, trustee or partner.

     

    SECTION
      2.13 Disclosure.
      The
      representations and warranties of the Company in this Agreement and the
      statements contained in the SEC Reports, except as modified by subsequent
      reports filed by the Company with the SEC prior to the date hereof, and the
      schedules, certificates and exhibits furnished to Purchaser by or on behalf
      of
      the Company in connection herewith did not and do not contain any untrue
      statement of a material fact and do not omit to state any material fact
      necessary to make the statements herein or therein not misleading in light
      of
      the circumstances under which such statements were made. The SEC Reports contain
      all material information concerning the Company required to be set forth
      therein, and no event or circumstance has occurred or exists since December
      31,
      2006, that would require the Company to disclose such event or circumstance
      in
      order to make the statements in the SEC Reports not materially misleading as
      of
      the date of the Closing that has not been so disclosed except for disclosure
      of
      the transactions contemplated hereby. The Company hereby acknowledges that
      Purchaser is and will be relying on the SEC Reports and the Company’s
      representations, warranties and covenants contained herein in making an
      investment decision with respect to the Offered Shares.

     

    SECTION
      2.14 Securities
      Compliance.
      The
      Common Stock is registered pursuant to Section 12(b) of the Securities
      Exchange Act of 1934, as amended (the “Exchange
      Act”),
      and
      listed on AMEX. The Company is in material compliance with all AMEX
      requirements, and the Company has not been contacted by AMEX, either orally
      or
      in writing, concerning any violations or any potential removal of the Common
      Stock from AMEX. 

     

    SECTION
      2.15 Environmental
      Matters.
      The
      Company and each of its subsidiaries is in compliance in all material respects
      with all applicable state and federal environmental laws, and the Company is
      not
      aware of any event or condition that exists or has occurred that is reasonably
      likely to interfere in any material respect with the compliance by the Company
      or any of its subsidiaries with any environmental law or that may give rise
      to
      any liability under any environmental law that, individually or in the
      aggregate, would have a Material Adverse Effect.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    SECTION
      2.16 Tax
      Returns.
      The
      Company and its subsidiaries have timely filed or caused to be filed all Federal
      tax returns and all material state and local tax returns required to have been
      filed by it, each of such returns are true, correct and complete in all material
      respects and all taxes required to be paid with respect to such returns or
      otherwise have been paid, except any such tax, the validity or amount of which
      is being contested in good faith by appropriate proceedings and as to which
      the
      Company has set aside on its books adequate reserves with respect thereto in
      accordance with generally accepted accounting principles. Neither the Company
      nor any of its subsidiaries has received any tax assessment, notice of audit,
      notice of proposed adjustment or deficiency notice from any taxing authority,
      and to the knowledge of the Company and its subsidiaries, no basis exists for
      any such tax assessment, adjustment or deficiency notice.

     

    SECTION
      2.17 Section
      203 of the DGCL.
      The
      Board
      of Directors of the Company has taken all actions necessary or advisable to
      ensure that Section 203 of the General Corporation Law of the State of Delaware
      does not apply to any of the transactions contemplated by this Agreement
      (including the purchase of the Offered Shares hereunder) and the Letter of
      Intent. 

     

    ARTICLE
      III

     

    REPRESENTATIONS,
      WARRANTIES AND COVENANTS OF PURCHASER

     

    Purchaser
      hereby acknowledges, represents, warrants and agrees as follows:

     

    SECTION
      3.1 Authorization;
      Enforceability; No Violations.
      

     

    (a) Purchaser
      is duly organized, validly existing and in good standing under the laws of
      its
      jurisdiction, has all requisite power and authority to execute, deliver and
      perform the terms and provisions of this Agreement and has taken all necessary
      action to authorize the execution, delivery and performance by it of this
      Agreement and to consummate the transactions contemplated hereby to be performed
      by it. 

     

    (b) The
      execution, delivery and performance by Purchaser of this Agreement and the
      consummation by Purchaser of the transactions contemplated hereby to be
      performed by it do not and will not violate any provision of
      (i) Purchaser’s organizational documents, or (ii) any law, statute,
      rule, regulation, order, writ, injunction, judgment or decree to which Purchaser
      is subject. Purchaser has duly executed and delivered this Agreement. Assuming
      the due execution and delivery hereof by the Company, this Agreement constitutes
      the legal, valid and binding obligation of Purchaser, enforceable against
      Purchaser in accordance with its terms, except as enforceability may be limited
      by applicable bankruptcy, insolvency, reorganization, moratorium or similar
      laws
      affecting the enforcement of creditors’ rights generally and by general
      principles of equity (regardless of whether enforcement is sought in a
      proceeding in equity or at law).

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    SECTION
      3.2 Securities
      Act Representations; Legends.
      

     

    (a) Purchaser
      understands and agrees that: (i) the offering and sale of the Offered
      Shares to be issued and sold hereunder is intended to be exempt from the
      registration requirements of the Securities Act of 1933, as amended (the
“Securities
      Act”);
      (ii) the initial offer and sale of the Offered Shares issuable hereunder
      have not been registered under the Securities Act or any other applicable
      securities laws and such securities may be transferred or otherwise resold
      in
      accordance with the provisions of Regulation S under the Securities Act (as
      applicable), pursuant to an effective registration statement under the
      Securities Act and any other applicable securities laws or if an exemption
      from
      such registration requirements is available; and (iii) the Company is
      required to register any resale of the Offered Shares under the Securities
      Act
      and any other applicable securities laws only to the extent provided in this
      Agreement.

     

    (b) Purchaser
      represents that the Offered Shares to be acquired by Purchaser pursuant to
      this
      Agreement are being acquired for its own account and not with a view to, or
      for
      sale in connection with, any distribution thereof or in violation of the
      Securities Act or any other securities laws that may be applicable.

     

    (c) Purchaser
      represents that, prior to the consummation of the transactions contemplated
      by
      this Agreement, it is not an affiliate (as such term is defined in Rule 405
      under the Securities Act) of the Company.

     

    (d) Purchaser
      acknowledges that no oral or written statements or representations have been
      made to Purchaser by or on behalf of the Company in connection with the offering
      and sale of the Offered Shares hereunder other than those set forth in the
      SEC
      Reports or as set forth herein, and Purchaser represents that it is not
      subscribing for the Offered Shares as a result of, or in response to, any
      advertisement, article, notice or other communication published in any
      newspaper, magazine or similar media or broadcast over television or radio,
      or
      presented at any seminar or meeting.

     

    (e) Purchaser
      has been furnished with such materials relating to the business, finances and
      operations of the Company and the offer and sale of the Offered Shares which
      have been requested by Purchaser. Purchaser has had the opportunity to read
      the
      SEC Reports and has been afforded the opportunity to ask questions of the
      Company and has received satisfactory answers to all questions asked. Purchaser
      understands that its investment in the Offered Shares is speculative and
      involves a high degree of risk. Purchaser acknowledges that it has carefully
      evaluated the merits and risks of such an investment, including the risk factors
      set forth in the SEC Reports.

     

    (f) Purchaser
      hereby covenants with the Company not to make any sale or other transfer of
      the
      Offered Shares without complying with the provisions of this Agreement, and
      Purchaser acknowledges that the certificates evidencing the Offered Shares
      will
      be imprinted with substantially the following legend that prohibits their
      transfer except in accordance therewith: THE SECURITIES REPRESENTED HEREBY
      HAVE
      NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
      (THE “1933 ACT”), OR ANY STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE
      OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE
      OF
      (I) SUCH REGISTRATION OR (II) AN EXEMPTION THEREFROM AND, IF REQUESTED BY THE
      COMPANY,
      AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH
      REGISTRATION IS NOT REQUIRED
      OR (III)
      IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT. Purchaser
      acknowledges and agrees that the Offered Shares are only transferable on the
      books of the Company in accordance with, and that the Company will refuse to
      register any transfer of the Offered Shares not made in accordance with, the
      restrictions set forth in the foregoing legend. Purchaser further covenants
      to
      notify the Company promptly of the sale of all of the Offered Shares. The
      foregoing legend will be removed from the certificates representing any Offered
      Shares, at the request of the holder thereof, at such time as they become the
      subject of an effective resale registration statement or of sales pursuant
      to
      Rule 144(k) of the Securities Act; provided, that Purchaser consents to the
      entry by the Company of stop transfer instructions with the Company’s transfer
      agent during any period under which a Suspension Notice (as defined in
Section
      4.4)
      shall
      be in effect.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (g) Purchaser
      is (i) an “accredited investor” within the meaning of Rule 501(a)(1), (a)(2),
      (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified
      institutional buyer” as defined in Rule 144A under the Securities Act.

     

    (h) Purchaser,
      either alone or with the assistance of its professional advisors, is a
      sophisticated investor and has such knowledge and experience in financial and
      business matters that it is capable of evaluating the merits and risks of an
      investment in the Offered Shares and of making an informed investment decision
      and understands and has fully considered for purposes of this investment the
      risk of loss of all monies invested herein. 

     

    (i) Purchaser
      (i) understands that there is presently no active public market for the Offered
      Shares and that an active and liquid trading market may not develop, which
      may
      have a material adverse impact on the price of the Offered Shares and
      Purchaser’s ability to dispose of the Offered Shares in a timely manner or at
      all, and (ii) is able (A) to bear the economic risk of its investment, (B)
      to
      hold the Offered Shares for an indefinite period of time and (C) to afford
      a
      complete loss of this investment.

     

    SECTION
      3.3 Investment
      Decision by Purchaser.
      Purchaser understands that nothing in this Agreement or any other materials
      presented to Purchaser in connection with the purchase and sale of the Offered
      Shares constitutes legal, tax or investment advice. Purchaser has consulted
      such
      legal, tax and investment advisors as it, in its sole discretion, has deemed
      necessary or appropriate in connection with its purchase of the Offered
      Shares.

     

    ARTICLE
      IV

     

    REGISTRATION
      RIGHTS

     

    SECTION
      4.1 Demand
      Registration Rights.
      In the
      event the Company receives from Purchaser on one or more occasions a written
      request that the Company file a registration statement with the SEC to
      effect
      the registration of the Registrable Securities (as defined below) under the
      Securities Act, (such registration statement and the prospectus included therein
      being referred to as the “Registration
      Statement”)
      for
      a
      public offering of shares of Common Stock of the Company then beneficially
      owned
      (as such term is defined under Rule 13d-3 of the Exchange Act) by Purchaser
      or
      issuable to Purchaser or any of its affiliates upon exercise of any option,
      warrant or other security convertible into or exercisable for Common Stock
      of
      the Company (the “Registrable
      Securities”)
      the
      aggregate price of which would exceed One Million Dollars ($1,000,000), the
      Company shall use commercially reasonable efforts to cause such Registrable
      Securities to be registered on a Registration Statement and to cause such
      Registrable Securities to be qualified in such jurisdictions as Purchaser may
      reasonably request, in each case within thirty (30) days after receipt by the
      Company of any such written request. Notwithstanding the foregoing, the Company
      shall not be obligated to take any action pursuant to this Section 4.1:

     

    
      	 	
              (a)

            	
              During
                the period starting with the date sixty (60) days prior to the Company’s
                estimated date of filing of, and ending on the date ninety (90) days
                immediately following the first effective date of, any registration
                statement pertaining to an offering by the Company of securities
                for cash
                (other than a registration of securities in a Rule 145 transaction or
                with respect to an employee benefit plan), provided that the Company
                is
                actively employing in good faith commercially reasonable efforts
                to cause
                such registration statement to become effective; and provided further
                that
                nothing in this paragraph (a) shall affect or hinder Purchaser’s
                right to cause the Company to include Registrable Securities as part
                of
                the registration of any such Company offering, as provided in Section 4.3(b);

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              For
                the first twelve months after the Closing Date, provided that nothing
                in
                this paragraph (b) shall affect or hinder Purchaser’s right to cause the
                Company to include Registrable Securities as part of the registration
                of
                any Company offering, as provided in Section
                4.3(b);

            

    

     

    
      	 	
              (c)

            	
              If,
                during the previous twelve (12) months, the Company has effected
                two (2)
                Registration Statements pursuant to this Section 4.1;
                provided that amendments or supplements to, and documents or reports
                incorporated by reference in, a Registration Statement are deemed
                to be
                part of the same Registration Statement;
                or

            

    

     

    
      	 	
              (d)

            	
              If
                the Company shall furnish to Purchaser a certificate signed by the
                President of the Company stating that, in the good faith judgment
                of the
                Board of Directors and after consultation with counsel, it would
                be
                seriously detrimental to the Company or its stockholders for a
                Registration Statement to be filed in the near future, in which case
                the
                Company’s obligation to use its commercially reasonable efforts to file a
                Registration Statement shall be deferred for a period not to exceed
                ninety
                (90) days from the receipt of the request to file such registration
                by
                such Purchaser or Purchaser, provided that the Company may not exercise
                this deferral right more than once per twelve (12) month
                period.

            

    

     

    If
      the
      Registration Statement relates to an underwritten public offering and the
      underwriter of such proposed offering advises the Company and Purchaser that,
      in
      its opinion, the number of securities requested to be included in the
      Registration Statement (including securities to by sold by the Company or any
      other security holder) exceeds the number which can be sold in such offering
      within an acceptable price range, then the Company shall include in such
      Registration Statement first the Registrable Securities the Purchaser proposes
      to register, and second any securities the Company or any other security holder
      proposes to register.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    SECTION
      4.2 Company
      Obligations.
      In
      connection with the Registration Statement, the Company shall: 

     

    
      	 	
              (a)

            	
              prepare
                and file with the SEC such amendments and supplements to the Registration
                Statement and the prospectus used in connection with the Registration
                Statement, and such documents and reports to be incorporated by reference
                into the Registration Statement, as may be necessary to comply with
                the
                provisions of the Securities Act with respect to the disposition
                of the
                Registrable Securities;

            

    

     

    
      	 	
              (b)

            	
              furnish
                such number of Registration Statements and prospectuses and other
                documents incident thereto, including any amendment of or supplement
                to
                the prospectus, as Purchaser may from time to time reasonably
                request;

            

    

     

    
      	 	
              (c)

            	
              furnish
                to Purchaser copies of any comments that the SEC provides in writing
                to
                the Company pertaining to a Registration Statement, and any responses
                thereto from the Company to the
                SEC;

            

    

     

    
      	 	
              (d)

            	
              promptly
                provide notice to Purchaser when a Registration Statement or any
                post-effective amendment thereto the same has become effective;
                

            

    

     

    
      	 	
              (e)

            	
              use
                its commercially reasonable efforts to qualify the Registrable Securities
                for offer and sale under such other securities or blue sky laws of
                such
                jurisdictions in the United States as Purchaser reasonably requests;
                

            

    

     

    
      	 	
              (f)

            	
              use
                its commercially reasonable efforts to cause all such Registrable
                Securities to be listed on The American Stock Exchange or any other
                applicable securities exchange or quoted on each inter-dealer quotation
                system on which the Company’s common stock is then listed or
                quoted;

            

    

     

    
      	 	
              (g)

            	
              pay
                all expenses incurred in connection with such registration, including
                but
                not limited to, registration and filing fees with the SEC, fees and
                expenses of compliance with securities or blue sky laws and fees
                and
                expenses incurred in connection with the listing or quotation of
                the
                Registrable Securities; and

            

    

     

    
      	 	
              (h)

            	
              enter
                into customary agreements (including without limitation underwriting
                agreements in customary form) if requested by Purchaser, including
                such
                representations and warranties by the Company and such other terms
                and
                provisions as are customarily contained in underwriting agreements
                generally with respect to secondary distributions, including without
                limitation customary lock up provisions, indemnification and contribution
                provisions in favor of the underwriters and customary agreements
                as to the
                provision of opinions of counsel and accountants’
                letters.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    SECTION
      4.3 Registration
      Statement Effectiveness.

     

    (a) The
      Company shall use commercially reasonable efforts to have the Registration
      Statement declared effective under the Securities Act as promptly as practicable
      after filing thereof with the SEC (the date the SEC declares the Registration
      Statement effective, the “Effective
      Date”).
      The
      Company shall use commercially reasonable efforts to cause the Registration
      Statement to continue to be effective until the earlier to occur of (A) six
      (6)
      months after the Effective Date and (B) the date that Purchaser has either
      disposed of or has had the ability to dispose of all Registrable Securities
      within a single three month period pursuant to Rule 144 of the Securities Act
      (“Effective
      Period”),
      and,
      during such period, to cause the Registration Statement and the prospectus
      contained therein to be updated as reasonably deemed necessary by the Company
      or
      required by the Securities Act or the Exchange Act to enable Purchaser to resell
      the Registrable Securities. 

     

    (b) If
      at any
      time during the period commencing twelve months after the Closing Date and
      ending on the termination of the Company’s obligations under this Article IV
      there is not an effective Registration Statement covering all of the Registrable
      Securities and the Company shall determine to prepare and file with the SEC
      a
      registration statement relating to an offering for its own account or the
      account of others under the Securities Act of any of its equity securities,
      other than on Form S-4 or Form S-8 (each as promulgated under the Securities
      Act) or their then equivalents relating to equity securities to be issued solely
      in connection with any acquisition of any entity or business or equity
      securities issuable in connection with the stock option or other employee
      benefit plans, then the Company shall send to Purchaser a written notice of
      such
      determination and, if within five (5) business days after the date of such
      notice, Purchaser shall so request in writing, the Company shall include in
      such
      registration statement all or any part of such Registrable Securities Purchaser
      requests to be registered; provided,
      however,
      that,
      the Company shall not be required to register any Registrable Securities
      pursuant to this Section
      4.3
      that are
      then eligible for resale pursuant to Rule 144(k) promulgated under the
      Securities Act or that are the subject of a then effective Registration
      Statement; provided further, that it shall be a condition to the inclusion
      of
      such Registrable Securities on such registration statement that Purchaser agrees
      to the same terms and conditions regarding method of sale applicable to the
      securities otherwise being sold through such registration.

     

    (c) Promptly
      upon any registration statement filed pursuant to this Section
      4.3
      being
      declared effective by the SEC, the Company will file a related form of final
      prospectus pursuant to Rule 424(b) promulgated under the Securities
      Act.

     

    (d) Purchaser
      agrees to indemnify (to the fullest extent permitted by applicable law) the
      Company, its officers and directors, each underwriter and selling broker, if
      any, and each person, if any, who controls the Company (within the meaning
      of
      the Securities Act), against liability, losses, claims, damages, actions or
      expenses (including, in each case, under the Securities Act or the Exchange
      Act)
      arising by reason of any statement contained in a registration statement
      (including, without limitation, any Registration Statement), or any amendment
      or
      supplement thereto, that Purchaser provided to the Company in writing explicitly
      for use in such registration statement, being actually or allegedly false or
      misleading or actually or allegedly omitting to state a material fact necessary
      to be stated in order that the statements made in such registration statement,
      in the circumstances in which they are made, not be misleading; provided that
      in
      no event will the aggregate amount Purchaser is required to pay pursuant to
      such
      indemnification obligations exceed the greater of the aggregate purchase price
      paid by Purchaser hereunder and the amount of the net proceeds received by
      Purchaser upon the sale of the Registrable Securities giving rise to such
      indemnification obligation. The Company hereby agrees to indemnify (to the
      fullest extent permitted by applicable law) Purchaser, its officers and
      directors, each underwriter and selling broker, if any, and each person, if
      any,
      who controls Purchaser (within the meaning of Securities Act) against liability,
      losses, claims, damages, actions or expenses (including, in each case, under
      the
      Securities Act or the Exchange Act) arising by reason of (i) any statement
      (other than a statement provided by Purchaser as described above) in or
      incorporated by reference in a registration statement (including, without
      limitation, any Registration Statement), or any amendment or supplement thereto,
      being actually or allegedly false or misleading or actually or allegedly
      omitting to state a material fact necessary to be stated in order that the
      statements made in or incorporated by reference in such registration statement,
      in the circumstances in which they are made, not be misleading, (ii)
any
      actual or alleged violation by the Company of the Securities
      Act, the
      Exchange Act, any state securities laws or any rule or regulation promulgated
      under the Securities
      Act,
      the
      Exchange Act or any state securities laws in connection with a registration
      statement, or
      (iii)
      any breach of any representation, warranty or covenant made by the Company
      in
      this Agreement.
      

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (e) To
      the
      extent a claim for indemnification under this Section
      4.3
      is
      unavailable (by reason of public policy or otherwise) or
      insufficient to hold harmless an indemnified party in respect of any losses
      referred to herein, then the indemnifying party, in lieu of indemnifying the
      indemnified party, shall contribute to the amount paid or payable by the
      indemnified party as a result of such losses, in such proportion as is
      appropriate to reflect the relative fault of the indemnifying party and
      indemnified party as well as any other relevant equitable considerations. The
      relative fault of such indemnifying party and indemnified party shall be
      determined by reference to, among other things, whether any action in question,
      including any untrue or alleged untrue statement of a material fact or omission
      or alleged omission of a material fact, was taken or made by, or relates to
      information supplied by, such indemnifying party or indemnified party, and
      the
      parties’ relative intent, knowledge, access to information and opportunity to
      correct or prevent such action, statement or omission. The amount paid or
      payable by a party as a result of any losses shall be deemed to include, subject
      to the limitations set forth herein, any reasonable attorneys’ or other
      reasonable fees or expenses incurred by such party in connection with any
      proceeding to the extent such party would have been indemnified for such fees
      or
      expenses if the indemnification provided for herein was available to such party
      in accordance with its terms.

     

    (f) The
      parties to this Agreement hereby acknowledge that they are sophisticated
      business persons who were represented by counsel during the negotiations
      regarding the provisions hereof, including, without limitation, the provisions
      of this Section 4.3,
      and are
      fully informed regarding said provisions. 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    SECTION
      4.4 Suspension.
      Upon
      receipt of a notice (a “Suspension
      Notice”)
      from
      the Company, after consultation with counsel, of the happening of any event
      that
      makes any statement made in the Registration Statement or related prospectus
      untrue or which requires the making of any changes in such Registration
      Statement or prospectus so that they will not contain any untrue statement
      of a
      material fact or omit to state any material fact required to be stated therein
      or necessary to make the statements therein in light of the circumstances under
      which they were made not misleading, Purchaser agrees that it shall forthwith
      discontinue disposition of Registrable Securities pursuant to such Registration
      Statement until Purchaser’s receipt of the copies of the supplemented or amended
      prospectus (which the Company shall use commercially reasonable efforts to
      prepare and distribute promptly) or until it is advised in writing by the
      Company that the use of the prospectus may be resumed, and has received copies
      of any additional or supplemental filings which are incorporated by reference
      in
      the prospectus. Notwithstanding anything to the contrary in this Agreement,
      upon
      the delivery of a Suspension Notice the Company may delay the filing of any
      required amendment or supplement to the Registration Statement if: (a) in the
      good faith and reasonable judgment of the Board of Directors of the Company,
      after consultation with counsel, disclosure of such amended information could
      be
      seriously detrimental to the Company, and the Board of Directors of the Company
      concludes, as a result, that it is in the best interest of the Company to defer
      the filing of such amendment or supplement at such time, and (b) the Company
      furnishes to Purchaser a certificate signed by the Chief Executive Officer
      of
      the Company stating that in the good faith judgment of the Board of Directors
      of
      the Company, it could be seriously detrimental to the Company for such amendment
      or supplement to be filed at such time and that it is, therefore, in the best
      interest of the Company to defer the filing of such amendment or supplement
      to
      the Registration Statement; provided,
      however,
      that
      (i) the Company shall have the right to defer such filing for a period of not
      more than 30 days, (ii) the Company shall not defer its obligation in this
      manner more than two times and (iii) the Effective Period shall be extended
      for
      the amount of time that the Registration Statement is unavailable due to such
      a
      deferral. The Company shall be permitted to enter stop transfer instructions
      with the Company’s transfer agent with respect to the Registrable Securities
      during any period under which a Suspension Notice shall be in
      effect.

     

    SECTION
      4.5 Termination
      of Obligations.
      The
      obligations of the Company under this Article IV
      shall
      terminate the later of (i) three (3) years after the Closing Date or (ii) when
      Purchaser is no longer an “affiliate” of the Company within the meaning of Rule
      144 of the Securities Act.

     

    SECTION
      4.6 Current
      Public Information.
      As long
      as Purchaser owns any Registrable Securities that are not otherwise eligible
      for
      sale as contemplated by Rule 144(k) under the Securities Act, the Company shall
      use commercially reasonable efforts to file all required reports with the SEC,
      or otherwise make available “adequate current public information” about itself,
      within the meaning of Rule 144(c) under the Securities Act, to potentially
      make
      available to Purchaser the benefits of certain rules and regulations of the
      SEC
      which may permit the sale of the Registrable Securities without registration.
      Notwithstanding the foregoing, to the extent that a holder of Registrable
      Securities may dispose of such Registrable Securities pursuant to a Registration
      Statement, the Company shall not be liable to any such holder for any breach
      of
      the provisions of this Section
      4.6.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      V

     

    CONDUCT
      OF BUSINESS PENDING THE CLOSING

     

    SECTION
      5.1 Conduct
      of Business by the Company Pending the Closing.
      The
      Company agrees that, between the date of this Agreement and the Closing, except
      as contemplated by any other provision of this Agreement, except as provided
      below, the business of the Company and its subsidiaries shall be conducted
      in,
      and the Company and its subsidiaries shall not take any action except in, the
      ordinary course of business consistent with past practice. Without limiting
      the
      generality of the foregoing, except as contemplated by this Agreement, neither
      the Company nor any of its subsidiaries shall, between the date of this
      Agreement and the Closing, directly or indirectly, do, or propose to do, any
      of
      the following without the prior written consent of Purchaser:

     

    (a) amend
      or
      otherwise change its certificate of incorporation or bylaws;

     

    (b) issue,
      sell, pledge, dispose of, grant, encumber, or authorize the issuance, sale,
      pledge, disposition, grant or encumbrance of, any shares of any class of capital
      stock or other equity interests in or of the Company or any of its subsidiaries,
      or any options, warrants, convertible securities or other rights of any kind
      to
      acquire any shares of such capital stock or other equity interests, or any
      other
      ownership interest (including any phantom interest or other interest represented
      by contract), of the Company or any of its subsidiaries (except for the issuance
      of the CCM Warrant and the issuance of shares of Common Stock issuable pursuant
      to the terms of the Plans, as in effect as of the date of this Agreement, or
      the
      exercise of outstanding Warrants);

     

    (c) reclassify,
      combine, split, subdivide or redeem, or purchase or otherwise acquire, directly
      or indirectly, any of its capital stock or other equity interests;

     

    (d) announce
      an intention, enter into any agreement or otherwise make a commitment, to do
      any
      of the foregoing.

     

    ARTICLE
      VI

     

    ADDITIONAL
      AGREEMENTS

     

    SECTION
      6.1 Use
      of
      Proceeds.
      The
      Company covenants and agrees that all of the proceeds from the issuance of
      the
      Offered Shares hereunder shall be used to finance the development of the
      Company’s projects in relation to molybdenum extraction. 

     

    SECTION
      6.2 Rights
      to Maintain Percentage Interest.
      

     

    (a) In
      the
      event that the Company issues any shares of capital stock of the Company,
      whether now authorized or not (“New
      Securities”),
      Purchaser shall have the right to purchase, in accordance with paragraph (c)
      below, such number of additional New Securities as necessary to ensure that
      Purchaser maintains the same percentage ownership of shares of capital stock
      of
      the Company outstanding both immediately before and immediately after the
      completion of the issuance of New Securities. Notwithstanding the foregoing,
      in
      no event shall Purchaser be entitled to purchase pursuant to this Section 6.2(a)
      additional New Securities that would result in Purchaser owning more than 10%
      of
      the outstanding shares of capital stock of the Company (on a fully diluted
      basis) immediately after the completion of the issuance of New Securities.
      

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (b) Notwithstanding
      the foregoing, the term “New Securities” does not include (i) securities of
      the Company issued to its employees, consultants, officers or directors of
      the
      Company or any of its subsidiaries, or which have been reserved for issuance,
      pursuant to any employee stock option, stock purchase, stock bonus plan, or
      other similar stock agreement or arrangement approved by the Company’s Board of
      Directors, (ii) securities of the Company issued in connection with any stock
      split, stock dividend or recapitalization of the Company, (iii) securities
      of
      the Company issued upon the conversion or exchange of convertible or
      exchangeable securities of the Company that are outstanding as of the date
      hereof or (iv) securities of the Company issued in connection with a transaction
      of the type described in Rule 145 under the Securities Act. 

     

    (c) In
      the
      event that the Company issues or proposes to issue New Securities, it shall
      give
      written notice (a “Notice
      of Issuance”)
      to
      Purchaser within ten days of such issuance, describing all material terms of
      the
      New Securities, the price and all material terms upon which the Company has
      issued or proposes to issue such New Securities. Purchaser shall have 20 days
      from the date of receipt of the Notice of Issuance to agree to purchase all
      or a
      portion of its pro rata share of New Securities (as determined pursuant to
      paragraph (a) above) for the same consideration, if such consideration shall
      consist solely of cash, or for cash, cash equivalents or marketable securities
      having an equivalent value to the consideration payable by the person to whom
      the Company proposes to issue such New Securities at the time of payment, and
      otherwise upon the terms specified in the Notice of Issuance by giving written
      notice to the Company, and stating therein the quantity of New Securities that
      Purchaser is electing to purchase.

     

    (d) The
      Company shall select a date not later than 20 days (or longer if required by
      law) after the expiration of the 20-day notice period referenced in Section
      6.2(c)
      for the
      closing of the purchase and sale of the New Securities. 

     

    SECTION
      6.3 Additional
      Rights.
      

     

    (a) Notwithstanding
      anything in this Agreement to the contrary, in the event that the company issues
      shares of capital stock of the Company (or securities convertible into or
      exercisable or exchangeable for shares of capital stock of the Company
      (“Convertible Securities”)) representing a minority investment position
      (beneficial ownership of less than 50% of the Company’s capital stock) to any
      strategic investor (being any entity that is engaged in the mining, steel or
      oil
      and gas industry) such that the number of shares of capital stock of the Company
      beneficially owned by such investor after such issuance will exceed the number
      of shares of capital stock then beneficially owned by Purchaser, Purchaser
      will
      have the right to purchase, in accordance with Section 6.2(c) above (mutatis
      mutandis), such number of additional shares of capital stock of the Company
      (or
      Convertible Securities) as necessary to ensure that Purchaser maintains at
      least
      the same level of beneficial ownership of shares of capital stock of the Company
      as such investor.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (b) The
      Company agrees that the written approval of Purchaser shall be required prior
      to
      the issuance of any shares of capital stock of the Company or any of its
      subsidiaries (or securities convertible into or exercisable or exchangeable
      for
      shares of capital stock of the Company or any of its subsidiaries) at a price
      less than the market value of such stock or securities (in the case of
      securities of the Company) or book value of such stock or securities (in the
      case of any subsidiary of the Company), other than in the case of an
      underwritten public offering or brokered placement of such stock or securities
      to more than 5 unaffiliated institutional investors. 

     

    SECTION
      6.4 Notice
      of Certain Events.
      The
      Company shall promptly notify Purchaser if the Company determines to seek
      investment by a third party in the mining assets of the Company or if the
      Company receives any credible and significant proposal that the Company intends
      to pursue relating to the investment by a third party in the mining assets
      of
      the Company (such notice in each case to specify the material terms and
      conditions of such proposed investment and the identity of such third party).
      Purchaser agrees to treat such information as Confidential Information under
      the
      Investor Nondisclosure Agreement dated October 31, 2007 between Purchaser and
      the Company.

     

    SECTION
      6.5 Termination
      of Rights and Obligations. The
      rights of Purchaser and obligations of the Company under this Article VI
      shall
      terminate when Purchaser no longer holds at least 5.0% of the outstanding shares
      of capital stock of the Company.

     

    ARTICLE
      VII

     

    CONDITIONS

     

    SECTION
      7.1 Conditions
      to the Obligations of Each Party.
      The
      obligations of each party to effect the transactions contemplated by this
      Agreement shall be subject to the satisfaction or waiver, at or prior to the
      Closing, of the following conditions:

     

    (a) No
      Order.
      No
      Governmental Authority shall have enacted, issued, promulgated, enforced or
      entered any law (whether temporary, preliminary or permanent) which is then
      in
      effect and has the effect of making the transactions contemplated by this
      Agreement illegal or otherwise restricting, preventing or prohibiting
      consummation of the transactions contemplated by this Agreement;
      and

     

    (b) HSR
      Act.
      Any
      waiting period (or any extension thereof) applicable to the consummation of
      the
      transactions contemplated by this Agreement under the HSR Act shall have expired
      or been terminated.

     

    SECTION
      7.2 Conditions
      to the Obligations of Purchaser.
      The
      obligations of Purchaser to effect the transactions contemplated by this
      Agreement shall be subject to the satisfaction or waiver of the following
      additional conditions:

     

    (a) Representations
      and Warranties.
      Each of
      the representations and warranties of the Company contained in this Agreement
      that are qualified by materiality or Material Adverse Effect shall be true
      and
      correct as of the date hereof and as of the Closing as though made on and as
      of
      the Closing (except that those representations and warranties which address
      matters only as of a particular date need only be true and correct as of such
      date), and all representations and warranties which are not so qualified shall
      be true and correct in all material respects (except that those representations
      and warranties which address matters only as of a particular date need only
      remain true and correct in all material respects as of such date);

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (b) Agreements
      and Covenants.
      Each of
      the Company and each of its subsidiaries shall have performed, in all material
      respects, all obligations and complied with, in all material respects, its
      agreements and covenants to be performed or complied with by it under this
      Agreement on or prior to the Closing; and

     

    (c) Officer’s
      Certificate.
      The
      Company shall have delivered to Purchaser a certificate, dated the date of
      the
      Closing, signed by an officer of the Company, certifying as to the satisfaction
      of the conditions specified in Sections
      7.2(a)
      and
(b).

     

    SECTION
      7.3 Conditions
      to the Obligations of the Company.
      The
      obligations of the Company to effect the transactions contemplated by this
      Agreement shall be subject to the satisfaction or waiver of the following
      additional conditions:

     

    (a) Representations
      and Warranties.
      Each of
      the representations and warranties of Purchaser contained in this Agreement
      that
      are qualified by materiality shall be true and correct as of the date hereof
      and
      as of the Closing as though made on and as of the Closing (except that those
      representations and warranties which address matters only as of a particular
      date need only be true and correct as of such date), and all representations
      and
      warranties which are not so qualified shall be true and correct in all material
      respects (except that those representations and warranties which address matters
      only as of a particular date need only remain true and correct in all material
      respects as of such date);

     

    (b) Agreements
      and Covenants.
      Purchaser shall have performed, in all material respects, all obligations and
      complied with, in all material respects, its agreements and covenants to be
      performed or complied with by it under this Agreement on or prior to the
      Closing; and

     

    (c) Officer’s
      Certificate.
      Purchaser shall have delivered to the Company a certificate, dated the date
      of
      the Closing, signed by an officer of Purchaser, certifying as to the
      satisfaction of the conditions specified in Sections
      7.3(a)
      and
(b).

     

    ARTICLE
      VIII

     

    TERMINATION

      AND SURVIVAL

     

    SECTION
      8.1 Survival.
      Notwithstanding any examination made by or on behalf of any party hereto, the
      knowledge of any party or the acceptance by any party of any certificate or
      opinion, each representation and warranty contained herein shall survive the
      Closing and shall be fully effective and enforceable for three (3) years after
      the Closing Date, and each covenant contained herein shall survive the Closing
      and shall be fully effective and enforceable for the periods set forth therein.
      

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    SECTION
      8.2 Termination.
      This
      Agreement may be terminated and the transactions contemplated by this Agreement
      may be abandoned at any time prior to the Closing (the date of any such
      termination, the “Termination
      Date”):

     

    (a) By
      mutual
      written consent of Purchaser and the Company; or

     

    (b) By
      either
      Purchaser or the Company if (i) the Closing shall not have occurred on or before
      March 31, 2008; provided,
      however,
      that
      the right to terminate this Agreement under this Section
      8.2(b)
      shall
      not be available to any party whose failure to fulfill any obligation under
      this
      Agreement has been the cause of, or resulted in, the failure of the Closing
      to
      occur on or before such date or (ii) any Governmental Authority shall have
      enacted, issued, promulgated, enforced or entered any order, decree, judgment,
      injunction or ruling which is then in effect and is final and nonappealable
      and
      has the effect of making consummation of the transactions contemplated by this
      Agreement illegal or otherwise preventing or prohibiting consummation of the
      transactions contemplated by this Agreement.

     

    SECTION
      8.3 Effect
      of Termination.
      In the
      event of the termination of this Agreement pursuant to Section 8.2,
      this
      Agreement shall forthwith become void, and there shall be no liability or
      obligation on the part of any party hereto, except (i) with respect to this
Article
      VIII,
      which
      shall survive any such termination and remain in full force and effect and
      (ii) with respect to any liabilities or damages incurred or suffered by a
      party as a result of the material breach by the other party of any of its
      representations, warranties, covenants or other agreements set forth in this
      Agreement.

     

    ARTICLE
      IX

     

    MISCELLANEOUS

     

    SECTION
      9.1 Notices.
      All
      notices, requests, consents and other communications hereunder shall be in
      writing, shall be addressed to the receiving party’s address set forth below or
      to such other address as a party may designate by notice hereunder, and shall
      be
      either (a) delivered by hand, (b) made by telecopy or facsimile
      transmission, (c) sent by overnight courier, or (d) sent by registered
      mail, return receipt requested, postage prepaid.

    
      

        
          	
                  If
                    to a Purchaser:

                	 	
                  ArcelorMittal
                    S.A. 

                
	 	 	
                  7th
                    Floor, Berkeley Square House

                
	 	 	
                  Berkeley
                    Square 

                
	 	 	
                  London
                    W1J 6DA

                
	 	 	
                  United
                    Kingdom

                
	 	 	
                  Attention:
                    Simon Evans

                
	 	 	
                  Facsimile:
                    +44 (0) 207 412-0203

                

        

         

        
          
            
            

          

          
            19

            
              

            

          

          
            
            

          

        

         

        
          	
                  With
                    a copy to:

                	 	
                  Shearman
                    & Sterling LLP

                
	 	 	
                  Broadgate
                    West

                
	 	 	
                  9
                    Appold Street

                
	 	 	
                  London
                    EC2A 2AP

                
	 	 	
                  United
                    Kingdom

                
	 	 	
                  Attention:
                    George Karafotias, Esq.

                
	 	 	
                  Facsimile:
                    +44 (0) 207 655-5265

                
	 	 	 
	
                  If
                    to the Company:

                	 	
                  General
                    Moly, Inc.

                
	 	 	
                  1726
                    Cole Blvd.

                
	 	 	
                  Suite
                    115

                
	 	 	
                  Lakewood,
                    CO 80401

                
	 	 	
                  Attention:
                    Chief Executive Officer

                
	 	 	
                  Facsimile:
                    (303) 928-8598

                
	 	 	 
	
                  With
                    a copy to:

                	 	
                  Kirkpatrick
                    & Lockhart Preston Gates Ellis LLP

                
	 	 	
                  925
                    Fourth Avenue

                
	 	 	
                  Suite
                    2900

                
	 	 	
                  Seattle,
                    WA 98104

                
	 	 	
                  Attention:
                    Gary J. Kocher, Esq.

                
	 	 	
                  Facsimile:
                    (206) 370-6105

                

        

         

      

    

    All
      notices, requests, consents and other communications hereunder shall be deemed
      to have been given (i) if by hand, at the time of the delivery thereof to
      the receiving party at the address of such party set forth above; (ii) if
      by telecopy or facsimile transmission, on the day that receipt thereof has
      been
      acknowledged by electronic confirmation or otherwise; (iii) if sent by
      overnight courier for next-business day delivery, on the next business day
      following the day such notice is delivered to the courier service; or
      (iv) if sent by registered mail, on the 5th business day following the day
      of mailing. 

     

    SECTION
      9.2 Entire
      Agreement.
      This
      Agreement, including exhibits or other documents referred to herein or that
      specifically indicate that they were delivered to Purchaser in connection with
      this Agreement, embodies the entire agreement and understanding between the
      parties hereto with respect to the subject matter hereof and supersedes all
      prior oral or written agreements and understandings relating to the subject
      matter hereof. No statement, representation, warranty, covenant or agreement
      of
      any kind not expressly set forth in this Agreement shall affect, or be used
      to
      interpret, change or restrict, the express terms and provisions of this
      Agreement.

     

    SECTION
      9.3 Amendments.
      The
      terms and provisions of the Agreement may be modified, amended or waived, or
      consent for the departure from such terms and provisions may be granted, only
      by
      written consent of the Company and Purchaser. Each such waiver or consent shall
      be effective only in the specific instance and for the purpose for which it
      was
      given, and shall not constitute a continuing waiver or consent.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    SECTION
      9.4 Assignment.
      Purchaser may not assign its rights under this agreement without the express
      prior written consent of the Company; provided,
      however,
      that
      Purchaser may assign its right, title and interest under this Agreement to
      one
      or more of its affiliates without the consent of the Company, but no such
      assignment shall relieve the assignor of its obligations hereunder.

     

    SECTION
      9.5 Benefit.
      All
      statements, representations, warranties, covenants and agreements in this
      Agreement shall be binding on the parties hereto and shall inure to the benefit
      of the respective successors and permitted assigns of each party hereto. Nothing
      in this Agreement shall be construed to create any rights or obligations except
      among the parties hereto, and no person or entity shall be regarded as a
      third-party beneficiary of this Agreement.

     

    SECTION
      9.6 Specific
      Performance.
      The
      parties hereto agree that irreparable damage would occur in the event any
      provision of this Agreement were not performed in accordance with the terms
      hereof and that the parties shall be entitled to specific performance of the
      terms hereof, in addition to any other remedy at law or in equity.

     

    SECTION
      9.7 Governing
      Law.
      This
      Agreement and the rights and obligations of the partied hereunder shall be
      construed in accordance with and governed by the laws of the State of New York
      applicable to agreements made and to be performed entirely within the State
      of
      New York, without giving effect to the conflict of law principles thereof.
      

     

    SECTION
      9.8 Waiver
      of Jury Trial.
      Each of
      the parties hereto hereby waives to the fullest extent permitted by applicable
      law any right it may have to a trial by jury with respect to any litigation
      directly or indirectly arising out of, under or in connection with this
      Agreement or the transactions contemplated hereby. 

     

    SECTION
      9.9 Severability.
      In the
      event that any court of competent jurisdiction shall determine that any
      provision, or any portion thereof, contained in this Agreement shall be
      unreasonable or unenforceable in any respect, then such provision shall be
      deemed limited to the extent that such court deems it reasonable and
      enforceable, and as so limited shall remain in full force and effect. In the
      event that such court shall deem any such provision, or portion thereof, wholly
      unenforceable, the remaining provisions of this Agreement shall nevertheless
      remain in full force and effect.

     

    SECTION
      9.10 Headings
      and Captions.
      The
      headings and captions of the various subdivisions of this Agreement are for
      convenience of reference only and shall in no way modify or affect the meaning
      or constructions of any of the terms or provisions hereof.

     

    SECTION
      9.11 No
      Waiver of Rights, Powers and Remedies.
      No
      failure or delay by a party hereto in exercising any right, power or remedy
      under this Agreement, and no course of dealing between the parties hereto,
      shall
      operate as a waiver of any such right, power or remedy of the party. No single
      or partial exercise of any right, power or remedy under this Agreement by a
      party hereto, nor any abandonment or discontinuance of steps to enforce any
      such
      right, power or remedy, shall preclude such party from other or further exercise
      thereof or the exercise of any other right, power or remedy hereunder. The
      election of any remedy by a party hereto shall not constitute a waiver of the
      right of such party to pursue other available remedies. No notice to or demand
      on a party not expressly required under this Agreement shall entitle the party
      receiving such notice or demand to any other or further notice or demand in
      similar or other circumstances or constitute a waiver of the rights of the
      party
      giving such notice or demand to any other or further action in any circumstances
      without such notice or demand. 

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    SECTION
      9.12 Fees
      and Expenses.
      Each of
      the parties shall pay its own fees and expenses (including the fees of any
      attorneys, accountants, appraisers or others engaged by such party) in
      connection with this Agreement and the transactions contemplated hereby whether
      or not the transactions contemplated hereby are consummated.

     

    SECTION
      9.13 Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original and all of which together shall constitute one agreement. 

     

    SECTION
      9.14 Further
      Assurances.
      In case
      at any time after the Closing any further action is necessary or desirable
      to
      carry out the purposes of this Agreement, the Company and Purchaser will take
      such further action as the other party may reasonably request, all at the sole
      cost and expense of the requesting party.

     

    [Signature
      page follows]

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE - SECURITIES PURCHASE AGREEMENT

     

    IN
      WITNESS WHEREOF, the Company and Purchaser have executed this Securities
      Purchase Agreement as of the day and year first above written.

     

    
      	 	 	 
	 	GENERAL
              MOLY, INC.
	 
 	 
 	 
 
	 	By:  	/s/
              Bruce D.
              Hansen
	 	
              
Name:
              Bruce D. Hansen
	 	Title:
              Chief
              Executive Officer

    

     

     

    
      	ARCELORMITTAL
              S.A.	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:  	/s/
              Sudhir
              Maheshwari 	 	 	 
	 	
              
Sudhir
              Maheshwari	 	 	
            
	 	
              Executive
                Vice President Finance and 

              Mergers
                & Acquisitions

              Member
                of the Group Executive Committee

            	 	 	 

    

     

    
      
        
        

      

      
        23

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