Document:

exv10w10

Exhibit 10.10

SALES/BUY-BACK AGREEMENT

AGREEMENT, made and entered into this 1st day of June, 2010 (“Effective Date”), by
and between Traxys North America LLC, a Delaware limited liability company corporation with offices
at 825 Third Avenue New York, NY 10022 (“Traxys”), and Molycorp Minerals, LLC, a Delaware limited
liability company with offices at 5619 Denver Tech Center Parkway, Suite 1000, Greenwood Village,
CO 80111 (“Molycorp”).

WHEREAS, Molycorp is the owner and operator of Rare Earth production and processing facilities
located at Mountain Pass, California; and

WHEREAS, Traxys is a marketer of mineral commodities; and

WHEREAS, The Parties wish to establish a relationship pursuant to the terms and conditions of this
Agreement.

NOW THEREFORE, in consideration of the mutual covenants of the Parties as hereinafter set forth,
and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties agree as follows:

ARTICLE 1 — DEFINITIONS

For the purposes of this Agreement, unless clearly indicated otherwise by the context, the
following terms used with a capital letter have the following meanings:

1.1 “Product” means, Didymium Oxide produced by Molycorp at the Facility.

1.2 “Party” means each of Traxys and Molycorp and “Parties” means both of them collectively

1.3 “Settlement Date” means the first anniversary of the Effective Date of this Agreement, unless
extended by mutual written agreement of the Parties, or unless accelerated by Molycorp in
accordance with Article 8 below.

1.4 “Purchase Price” means the price for the Product payable by Traxys to Molycorp pursuant to
Article 2.2.

1.5 “Net Revenue” means the price at which the Product is sold by Traxys to a third party (net of
any taxes or other government charges) less the costs incurred by Traxys or its agents in making
the sale including transportation and related costs in getting the Product from the storage
facility referred to in Article 2.2 to the customer, further analysis/assay costs, royalties, the
cost of credit insurance in relation to the customer, insurance against loss, damage, etc., duties
and other similar direct costs (“Traxys Direct Costs”).

1.6 “Recommended Price” means the price proposed and confirmed by Traxys for a Product sale but not
approved by Molycorp.

1.7 “Facility” means Molycorp’s mine and processing facility at Mountain Pass, California.

1.8 “Settlement” means the transaction wherein Traxys pays to Molycorp the balance, if any, of the
Purchase Price in respect of Product sold and Traxys receives from the proceeds of such sale

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or from Molycorp any Traxys Direct Costs, Finance Charges, and Handling Fees to which it is
entitled.

ARTICLE 2 — SALE AND PURCHASE

2.1. Molycorp agrees to sell and Traxys agrees to purchase approximately 513,677 pounds (233,000
kg) of Product on the terms and conditions set forth herein. Delivery of Product shall be made as
provided in Article 6.

2.2. The price of the Product is USD$11.50 per pound (subject to adjustment in accordance with
clauses 3, 4 and 5) (“Purchase Price”) free delivered in Molycorp storage facility, Mountain Pass,
California (“Molycorp Storage Facility”). Traxys may file a UCC 1 financing statement to give
notice that it is the owner of the Products held in the Molycorp Storage Facility.

2.3 Traxys shall advance to Molycorp USD$9.75 per pound of Product towards payment of the Purchase
Price of such Product, within three working days following the day of receipt by Traxys of the
irrevocable warehouse receipt (in the form attached as Schedule I), packing list and producer’s
weight and analysis certificate (the “Advance”).

2.4 Title to the Product will pass from Molycorp to Traxys (and a sale will be deemed completed)
upon receipt by Molycorp of the Advance relating to the Product covered by a warehouse receipt.

2.5. Financing: To allow Traxys to recover its cost of capital, Traxys will be entitled to a
finance charge (“Finance Charge”) on the amount of its outstanding Advance (commencing on the date
of such Advance), plus the amount of any unrecovered Traxys Direct Costs at US Libor three month
plus a percentage which will be adjustable to reflect Traxys’s actual cost of capital, on the basis
of a 360 days year and of the actual days elapsed as follows:

	 	a)	 	Financing Charges to be paid as part of final settlement.
	 
	 	b)	 	The financing rate will be set for periods of 3 months, revolving.
	 
	 	c)	 	The new rate of interest will be advised by Traxys to Molycorp during the week
preceding the start of the new period.
	 
	 	d)	 	The applicable rate for the period, ending on August 31, 2010, is 6% per annum and
shall be reset on each of September 1, December 1, March 1 and June 1.

2.6 Financing Charges to be recovered by Traxys shall reflect amounts received by Traxys in
accordance with Article 4.2, thereby reducing the outstanding Advance.

ARTICLE 3 — MARKETING TO THIRD PARTIES

3.1. Marketing: Until the Settlement Date, the Parties will consult regarding sales strategy.
Molycorp will make the final decision on sales.

3.2. Third Party analysis: If a third party analysis is required by a customer, it must be by an
independent laboratory internationally recognized in the analysis of Rare Earth products to be

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nominated and agreed between the parties and the customer within 30 days after the event requiring
such analysis and the result of any such analysis will serve as the basis of settlement between
Traxys and Molycorp as an adjustment to the Purchase Price.

3.3. Credit Risk: To be agreed upon in advance between the Parties with the goal to credit insure
all outstanding account receivables exposure which are not secured by an irrevocable letter of
credit. Traxys shall not be required to accept any credit risk with respect to a proposed customer
as to whom credit insurance is not available.

3.4. Sharing of Net Revenue:

3.4.1. Net Revenue at or below USD$9.75 per pound of Product shall be retained by Traxys and
credited against Advances on a dollar-for-dollar basis.

3.4.2. Subject to Section 3.4.5 below, Net Revenue between USD$9.75 and USD$13.75 per pound of
Product shall be retained 100% by Molycorp.

3.4.3. Net Revenue between USD$13.75 and USD$16.25 per pound of Product, shall be shared on a
70%/30% (Molycorp/Traxys) basis.

3.4.4. Net Revenue above USD$16.25 per pound of Product, shall be shared on a 60%/40%
(Molycorp/Traxys) basis.

3.4.5. The Net Revenue sharing will be calculated after deduction for any Financing Charges or
Handling Fees Molycorp owes Traxys.

3.5. Special Condition: In the event that Molycorp does not approve a sale by Traxys which has been
recommended by Traxys with a proposed price greater than USD$13.75 per pound of Product, and such
tonnage remains unsold at the Settlement Date, Traxys will be entitled to the greater of (i) a
Handling Fee (as defined below) equal to 5% of the amount of the Advance made with respect to such
tonnage; or (ii) the amount Traxys would have received pursuant to Articles 3.4.3 and 3.4.4 had the
sale been completed at the Recommended Price. In the event of a subsequent sale of this tonnage
above the Recommended Price by Traxys, Molycorp will be entitled to all Net Revenue less Traxys’
share of Net Revenue calculated at the Recommended Price.

ARTICLE 4 — SETTLEMENT

4.1 At the Settlement Date, all unsold Product shall be re-purchased by Molycorp at USD$9.75 per
pound of Product and any unpaid Finance Charges, Handling Fees and Traxys Direct Costs as to which
Traxys is entitled to reimbursement shall become immediately due and payable.

4.2. Any payment received by either Party of USD$9.75 (or less) per pound of Product, shall be
retained by Traxys with respect to such Product, and the amount of the outstanding Advance shall be
reduced on a dollar-for-dollar basis until the amount of the outstanding Advance shall have been
reduced to zero, after which amounts received will be shared by Traxys and Molycorp as contemplated
by this agreement. Any payment received by either Party in excess of USD$9.75 per pound of Product,
shall shared in accordance with the Net Revenue sharing provisions of Article 3.4 above.

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ARTICLE 5 — HANDLING FEE

Traxys shall be entitled to 2% per annum handling fee (herein the “Handling Fee”) for any tonnage
unsold at Settlement Date (but excluding any tonnage referred to in clause 3.5, which amount shall
be paid to or credited to Traxys on the Settlement Date).

ARTICLE 6 — SHIPPING AND STORAGE

6.1 Packing: In Supersacks, suitable for export/container shipment.

6.2 Delivery Schedule: Within 24 hours after execution of this Agreement by both Parties.

6.3 Delivery Location: Molycorp shall deliver the Product to a designated storage area at
Molycorp’s Mountain Pass, California facility. Molycorp shall keep all Traxys owned Product in a
segregated area of the Molycorp Storage Facility with a prominent sign indicating that it is the
property of Traxys. Molycorp shall safeguard such Product with the same degree of care it uses
with respect to its own property. Molycorp shall not permit or suffer to exist any lien or
encumbrance on Traxys-owned Product by any person claiming by or through Molycorp.

6.4 Traxys shall pay US$1.00 per month for storage of the Product. All Traxys Delivery Costs
associated with the on-sale of the Product shall be paid by Traxys and reimbursed to Traxys
following the receipt by Traxys of the sale proceeds from a customer.

6.5 The Parties will keep each other informed of all intended Product movements in and out of
storage. Except for withdrawals by Traxys for an approved sale, all withdrawals of Product from
storage will require the consent of both parties evidenced in writing unless a party is in default
of this agreement in which case the consent of the defaulting party is not required for the
withdrawal of Product from storage.

ARTICLE 7 — INTENTIONALLY DELETED

ARTICLE 8 — ACCELERATION OPTION

Acceleration: Anything herein contained to the contrary not withstanding, Molycorp shall have the
unrestricted right, for any reason or no reason, and in its sole discretion, to accelerate the
Settlement Date with respect to all or any portion of the Product at any time, without penalty.

ARTICLE 9 — INSURANCE

From the date of delivery of the Product into the warehouse the Product owned by Traxys shall be
insured by Traxys (including for loss by fire, natural disaster or other casualty) for at least the
greater of 110% of the Purchase Price or the Fair Market Value of the Product as established from
time to time by mutual agreement of the parties and with reference to then prevailing market
prices, with the cost included in Traxys Direct Costs and recoverable by Traxys from the proceeds
of sales to customers. Molycorp shall not be liable for any loss, destruction, damage or other
casualty to the Product that is covered by such insurance, or which should have been covered by
such insurance but for Traxys’ failure to maintain such insurance, except where the

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loss, destruction, or damage is a result of Molycorp’s gross negligence or the misappropriation of
its employee.

ARTICLE 10 — TERMINATION

This Agreement shall be terminated before its normal term if:

     Voluntary Petition. The Party shall (i) commence a voluntary case under the Federal
bankruptcy laws (as now or hereafter in effect), (ii) file a petition seeking to take advantage of
any other laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding up
or composition or adjustment of debts, (iii) consent to or fail to contest in a timely and
appropriate manner any petition filed against it in an involuntary case under such bankruptcy laws
or other laws, (iv) apply for, or consent to, or fail to contest in a timely and appropriate
manner, the appointment of, or the taking of possession by, a receiver, custodian, trustee or
liquidator of itself or of a substantial part of its assets, domestic or foreign, (v) admit in
writing its inability to pay its debts as they become due, (vi) make a general assignment for the
benefit of creditors, or (vii) take any corporate action for the purpose of effecting any of the
foregoing; or

     Involuntary Proceeding. A case or other proceeding shall be commenced against the
Party in any court of competent jurisdiction seeking (i) relief under the Federal bankruptcy laws
(as now or hereafter in effect) or under any other laws, domestic or foreign, relating to
bankruptcy, insolvency, reorganization, winding up or adjustment of debts, or (ii) the appointment
of a trustee, receiver, custodian, liquidator or the like of the Party, or of all or any
substantial part of the assets, domestic or foreign, of the Party and such case or proceeding shall
continue undismissed or unstayed for a period of sixty (60) calendar days, or an order granting the
relief requested in such case or proceeding against the Party (including, but not limited to, an
order for relief under such Federal bankruptcy laws) shall be entered;

At the non defaulting Party’s discretion, in the event of a material breach by one of the Parties
of any or all of its obligations under the Agreement, and the defaulting Party fails to cure the
breach within 30 (thirty) days after receipt of written notice requesting the defaulting Party to
cure such breach.

ARTICLE 11 — FORCE MAJEURE

Force majeure means any event beyond a Party’s control, which could not be reasonably foreseen at
the time this Agreement was executed, given its unforeseeable and unavoidable nature, including,
but without limitation, any order, regulation, decision or directive, judgment or determination
issued by any authority in statute or other form; any uprising, disturbance, civil war or war with
a foreign power, strike or other labour disturbance; any fire, flood or other act of God; or, in
general, any other condition beyond the control of a Party.

If an event of force majeure should occur and prevents one of the Parties from performing its
obligations under this Agreement, the Party invoking an event of force majeure shall provide the
other Party with:

	 	a)	 	full evidence of the said event as promptly as possible and in any event within 7
(seven) days of its occurrence,

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	 	b)	 	any additional information that the other Party may reasonably require to ascertain the
force majeure nature of the concerned event, and

	 	c)	 	an appropriate reporting on the evolution of the situation.

If the event of force majeure still continues for a 3 (three) month period after its occurrence,
then the Party which has not claimed force majeure may terminate this Agreement, simply by
informing the other Party in writing of its decision to terminate this Agreement with immediate
effect.

ARTICLE
12 — DISPUTES

This Agreement shall be governed by, interpreted, construed, and enforced in accordance with the
laws of the State of New York without regard to the principles of conflicts of law thereof.

Any dispute or claim arising out of this Agreement or the transactions contemplated hereby, which
the Parties are unable to resolve themselves, shall be settled through binding arbitration. Any
such arbitration shall be administered by the American Arbitration Association under its
then-applicable Commercial Arbitration Rules. The arbitration shall be heard and decided by three
(3) arbitrators (one selected by Molycorp, one selected by Traxys and the third selected by the
first two arbitrators), and any judgment on the award rendered by the arbitrators may be entered in
any court having jurisdiction thereof. The arbitration shall take place in the city and state of
New York.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the date set forth
next to their respective signatures below.

	 	 	 	 	 	 	 

	Traxys North America LLC:	 	Molycorp Minerals, LLC:
	 
	 	 	 	 	 	 
	By:

	 	/s/ Mark Kristoff
	 	By:
	 	/s/ Mark A. Smith
	 

	 	 
	 	 	 	 
	 

	 	Mark Kristoff, CEO
	 	 	 	Mark A. Smith, CEO
	 
	 	 	 	 	 	 
	Date:

	 	 6/01/2010
	 	Date:
	 	6/01/2010

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SCHEDULE I

(Date material arrives in warehouse)

Traxys North America LLC

825 Third Avenue

New York, NY 10022

Dear Sir

			
	RE:	 	WAREHOUSE RECEIPT/WARRANT

This is to confirm that we have received [___] Supersacks containing a total of [     ] pounds of
Didymium Oxide, marked Lot [     ] on [     ].

This material is stored at our warehouse located at Mountain Pass, California. We confirm that
this material will be stored at no cost to you, until such time as you request delivery of the
material, not to exceed twelve months from the date of this letter.

Please address all communications to:

Robert Noll, Sales Manager

Molycorp Minerals, LLC

5619 Denver Tech Center Blvd., Suite 1000

Greenwood Village, CO 80111

Please
don’t hesitate to contact our Sales Manager, Mr. Robert Noll at (303) 843-8043 or email
Robert.Noll@Molycorp.com with any further queries or comments regarding the foregoing.

Yours faithfully

-7-exv10w11

Exhibit 10.11

EXECUTIVE EMPLOYMENT AGREEMENT

     This
Executive Employment Agreement (this “Agreement”) is made
this 21st day of May, 2010
(the “Effective Date”), by and between MOLYCORP, INC., a Delaware corporation (“Employer”) and MARK
A. SMITH (“Executive”). The Employer and the Executive are referred to below individually as a
“Party” and collectively as the “Parties.”

WITNESSETH:

     WHEREAS, Molycorp, LLC (the predecessor of the Employer) and the Executive are currently
parties to an employment agreement, dated November 1, 2009, (the “Prior Agreement”);

     WHEREAS, this Agreement will supersede and completely replace the Prior Agreement as of the
Effective Date;

     WHEREAS, the Executive agrees to be employed by the Employer upon and subject to the terms
herein provided; and

     WHEREAS, the Employer agrees to employ the Executive upon and subject to the terms herein
provided.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual promises, covenants and
agreements contained herein, the legal sufficiency of which is acknowledged by the Parties, and
intending to be legally bound, the Parties agree as follows:

     1. Employment. The Employer shall employ the Executive, and the Executive accepts
continued employment with the Employer, upon the terms and conditions set forth in this Agreement
for a period of time beginning on the date hereof and ending as provided in Section 4 (the
“Employment Period”). Notwithstanding anything in this Agreement to the contrary, the Executive
will be an at-will employee of the Employer and the Executive or the Employer may terminate the
Executive’s employment with the Employer for any reason or no reason at any time.

     2. Office and Duties. The Executive shall serve as, and have the title of, Chief
Executive Officer and shall report to, and be subject to the power and authority of, the Board of
Directors of the Employer (the “Board”). The Executive shall manage the affairs of the Employer
and have the duties, responsibilities and authority of a chief executive officer. The Executive
shall perform such tasks commensurate with this position as may from time to time be defined or
assigned by the Board. The Executive shall devote all business time, labor, skill, undivided
attention and best ability to the performance of the Executive’s duties hereunder in a manner which
will faithfully and diligently further the business and interests of the Employer. During the
Employment Period, the Executive shall not directly or indirectly pursue any other business
activity without the prior written consent of the Board, except as permitted under Section 7(f) of
this Agreement. The Executive further agrees to travel to whatever extent is reasonably necessary
in the conduct of the Employer’s business, at the Employer’s expense.

 

 

     3. Compensation and Benefits.

     (a) The Employer will pay the Executive a base salary for services rendered under this
Agreement at a rate of not less than $400,000 per year, payable in accordance with Employer’s
standard payroll practices, subject to such payroll and withholding deductions as are required by
law or authorized by the Executive. The Executive shall be eligible for increases in base salary
at the sole discretion of the Employer.

     (b) The Executive shall be entitled to participate in the employee benefit plans (such as
medical and dental insurance, disability, life insurance, 401k and sick pay) offered to
substantially all of the employees of the Employer. In addition, the Executive will be eligible
for the Employer’s Management Incentive Plan, which is a nonqualified deferred compensation plan to
which the Employer may make contributions and the Executive may elect to make deferral
contributions from his base salary and bonus, if any. Employer contributions to the Management
Incentive Plan are discretionary and subject to annual Board approval. Other than the Executive’s
eligibility for retiree medical coverage, the Employer shall not be required to establish or
continue any benefit plans or to take any action to cause the Executive to be eligible for any such
benefits on a basis more favorable than that applicable to all its employees generally

     (c) The Executive shall be eligible for such bonus plans and long-term equity or cash
incentive compensation plans for the Employer’s officers and directors as the Board may establish
from time to time, which will be based on the achievement and satisfaction of goals and objectives
established by the Board.

     (d) The Employer shall reimburse the Executive for all reasonable and actual out-of-pocket
costs and expenses, including reasonable travel and business entertainment expenses, incurred by
him in the course of performing his duties under this Agreement, subject in all instances to the
Employer’s reimbursement policies and requirements applicable to all employees with respect to
reporting and documentation of such expenses, including, without limitation, the timely submittal
of receipts, invoices and documentation supporting all such costs and expenses. If it is
reasonable and appropriate for the Executive’s spouse to travel with the Executive for the
Executive’s business travel, then the Employer shall reimburse the Executive for all reasonable and
actual out-of-pocket travel costs and expenses incurred by the Executive’s spouse.

     (e) The Employer shall purchase and provide to the Executive a term life insurance policy in
the amount of $1,000,000 for the benefit of the Executive.

     (f) The Executive shall be entitled to twenty-five (25) days paid vacation during each
12-month period worked, commencing on the date hereof. A maximum of 10 days of accrued but unused
vacation may be carried over from one year to the next year; any accrued but unused vacation time
not carried over will be waived and will not be deemed earned pursuant to C.R.S. § 8-4-101 et seq.
The Executive will keep the Board apprised of dates for planned vacation.

     4. Employment Period. Unless renewed in writing by the mutual agreement of the
Employer and the Executive, the Employment Period shall be for the period beginning on the date of
this Agreement and ending on June 1, 2013; provided, however, that (i) the

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Employment Period shall terminate prior to such date upon the Executive’s resignation, death
or Disability (as defined below) and (ii) the Employment Period may be terminated by the Employer
at any time prior to such date for Cause (as defined below) or without Cause.

     5. Termination of Employment.

     (a) If the Employer terminates the Executive’s employment as a result of the Executive’s death
or the Executive’s disability or for Cause (as defined below), the Employer will pay the
Executive’s accrued salary, benefits and vacation, including the then unused accrued vacation, up
to and including the date of termination. Thereafter, the Employer will have no further
obligations to the Executive under this Agreement. For purposes of this Agreement, “Cause” is
defined as: (1) the Executive’s misconduct, malfeasance, or negligence relative to the Executives
duties or the Employer’s business; (2) the Executive’s failure or refusal to perform the services
required or as requested by the Board, or the Executive’s refusal to carry out or perform proper
directions or instructions from the Employer or the Board with respect to the services rendered
hereunder; (3) the Executive’s conviction of a crime that either results in a sentence of
imprisonment or involves theft, embezzlement, dishonesty or breach of securities or financial laws
or regulations; (4) activities by the Executive that are injurious to the Employer, its affiliates
or its or their reputation; or (5) any conduct constituting “cause” under applicable law. Whether
Cause exists to justify the termination of this Agreement shall be determined by the Employer in
its sole discretion.

     (b) If the Employer terminates the Executive’s employment without Cause or if the Executive
terminates his employment for Good Reason (as defined below), the Employer will pay to the
Executive (1) the Executive’s accrued salary and vacation, including the then unused accrued
vacation, up to and including the date of termination and (2) the equivalent of one year of the
Executive’s Base Salary, less applicable deductions and withholdings, pursuant to the Employer’s
standard pay periods and practices; provided, however, that such payments shall be deemed severance
pay and not wages. Such payment shall be made to the Executive as soon as administratively
practicable after the termination of the Executive’s employment without Cause or for Good Reason,
but no later than two and one-half months after the last day of the calendar year in which the
Executive’s employment is so terminated. It is expressly understood that the Employer’s payment
obligations under this Section 5(b) shall cease in the event the Executive breaches any of the
agreements in Sections 6 and 7 of this Agreement. Notwithstanding anything herein to the contrary,
the Company shall not be obligated to make any payment under this Section 5(b) unless (i) prior to
the sixtieth (60th) day following the termination without Cause or termination for Good
Reason, the Executive executes a release of all current or future claims, known or unknown, arising
on or before the date of the release, against the Employer and its subsidiaries and the directors,
officers, employees and affiliates of any of them, in a form approved by the Employer and (ii) any
applicable revocation period has expired during such sixty-day period without the Executive
revoking such release. Each payment under this Section 5(b) shall be considered a separate payment
and not one of a series of payments for purposes of Section 409A of the Internal Revenue Code of
1986, as amended. Any payment payable pursuant to this Section 5(b) that is not made following the
Executive’s termination without Cause or termination for Good Reason because the Executive has not
executed the release described herein shall be paid to the Executive in a single lump sum on the
first payroll date following the last day of any applicable revocation period after the Executive
executes the

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release; provided that the Executive executes and does not revoke the release in accordance
with the requirements set forth herein.

     For purposes of this Agreement, “Good Reason” is defined as: the Executive’s termination of
his employment within the two-year period following a Change of Control (as such term is defined in
Exhibit A to this Agreement) as a result of (i) any material diminution in the Executive’s
authority, duties or responsibilities or (ii) a relocation of the Executive’s principal office to a
location that is in excess of fifty (50) miles from its location as of the Effective Date.
Notwithstanding the foregoing, no termination of employment by the Executive shall constitute a
termination for “Good Reason” unless (A) the Executive gives the Employer notice of the existence
of an event described in clause (i) or (ii) above within sixty (60) days following the occurrence
thereof, (B) the Employer does not remedy such event within thirty (30) days of receiving the
notice described in the preceding clause (A), and (C) the Executive terminates employment within
five (5) days of the end of the cure period specified in clause (B), above.

     (c) If the Executive terminates his employment for any reason other than Good Reason, the
Employer will pay the Executive’s accrued salary and vacation, including the then unused accrued
vacation, up to and including the date of termination. Thereafter, the Employer will have no
further obligations to the Executive under this Agreement. The Executive may resign upon not less
than sixty (60) days prior written notice to the Employer, for any reason or no reason.

     6. Confidential Information; Discoveries and Inventions; Work Made for Hire.

     (a) The Executive will keep in strict confidence, and will not, directly or indirectly, at any
time, during or after the Executive’s employment with the Employer, disclose, furnish, disseminate,
make available or, except in the course of performing the Executive’s duties of employment, use any
trade secrets or confidential business and technical information of the Employer or its customers
or vendors, without limitation as to when or how the Executive may have acquired such information.
Such confidential information shall include, without limitation, the Employer’s unique selling,
manufacturing and servicing methods and business techniques, training, service and business
manuals, promotional materials, training courses and other training and instructional materials,
vendor and product information, customer and prospective customer lists, other customer and
prospective customer information and other business information. The Executive specifically
acknowledges that all such confidential information, whether reduced to writing, maintained on any
form of electronic media, or maintained in the mind or memory of the Executive and whether compiled
by the Employer, and/or the Executive, derives independent economic value from not being readily
known to or ascertainable by proper means by others who can obtain economic value from its
disclosure or use, that reasonable efforts have been made by the Employer to maintain the secrecy
of such information, that such information is the sole property of the Employer and that any
retention and use of such information by the Executive during the Executive’s employment with the
Employer (except in the course of performing the Executive’s duties and obligations to the
Employer) or after the termination of the Executive’s employment shall constitute a
misappropriation of the Employer’s trade secrets.

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     (b) The Executive agrees that upon termination of the Executive’s employment with the
Employer, for any reason, the Executive shall return to the Employer, in good condition, all
property of the Employer, including without limitation, the originals and all copies of any
materials which contain, reflect, summarize, describe, analyze or refer or relate to any items of
information listed in Section 6(a) of this Agreement. In the event that such items are not so
returned, the Employer will have the right to charge the Executive for all reasonable damages,
costs, attorneys’ fees and other expenses incurred in searching for, taking, removing and/or
recovering such property.

     (c) The Executive agrees that upon conception and/or development of any idea, discovery,
invention, improvement, software, writing or other material or design that: (A) relates to the
business of the Employer, or (B) relates to the Employer’s actual or demonstrably anticipated
research or development, or (C) results from any work performed by the Executive for the Employer,
the Executive will assign to the Employer the entire right, title and interest in and to any such
idea, discovery, invention, improvement, software, writing or other material or design. The
Executive has no obligation to assign any idea, discovery, invention, improvement, software,
writing or other material or design that the Executive conceives and/or develops entirely on the
Executive’s own time without using the Employer’s equipment, supplies, facilities, or trade secret
information unless the idea, discovery, invention, improvement, software, writing or other material
or design either: (x) relates to the business of the Employer, or (y) relates to the Employer’s
actual or demonstrably anticipated research or development, or (z) results from any work performed
by the Executive for the Employer. The Executive agrees that any idea, discovery, invention,
improvement, software, writing or other material or design that relates to the business of the
Employer or relates to the Employer’s actual or demonstrably anticipated research or development
which is conceived or suggested by the Executive, either solely or jointly with others, within one
(1) year following termination of the Executive’s employment under this Agreement or any successor
agreements shall be presumed to have been so made, conceived or suggested in the course of such
employment with the use of the Employer’s equipment, supplies, facilities, and/or trade secrets.

     (d) In order to determine the rights of the Executive and the Employer in any idea, discovery,
invention, improvement, software, writing or other material, and to insure the protection of the
same, the Executive agrees that during the Executive’s employment, and for one (1) year after
termination of the Executive’s employment under this Agreement or any successor agreements the
Executive will disclose immediately and fully to the Employer any idea, discovery, invention,
improvement, software, writing or other material or design conceived, made or developed by the
Executive solely or jointly with others. The Employer agrees to keep any such disclosures
confidential. The Executive also agrees to record descriptions of all work in the manner directed
by the Employer and agrees that all such records and copies, samples and experimental materials
will be the exclusive property of the Employer. The Executive agrees that at the request of and
without charge to the Employer, but at the Employer’s expense, the Executive will execute a written
assignment of the idea, discovery, invention, improvement, software, writing or other material or
design to the Employer and will assign to the Employer any application for letters patent or for
trademark registration made thereon, and to any common-law or statutory copyright therein; and that
the Executive will do whatever may be necessary or desirable to enable the Employer to secure any
patent, trademark, copyright, or other property right therein in the United States and in any
foreign country, and any division, renewal,

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continuation, or continuation in part thereof, or for any reissue of any patent issued
thereon. In the event the Employer is unable, after reasonable effort, and in any event after ten
business days, to secure the Executive’s signature on a written assignment to the Employer of any
application for letters patent or to any common-law or statutory copyright or other property right
therein, whether because of the Executive’s physical or mental incapacity or for any other reason
whatsoever, the Executive irrevocably designates and appoints the
General Counsel or Corporate
Secretary of the Employer as the Executive’s attorney-in-fact to act on the Executive’s behalf to
execute and file any such application and to do all other lawfully permitted acts to further the
prosecution and issuance of such letters patent, copyright or trademark.

     (e) The Executive acknowledges that, to the extent permitted by law, all work papers, reports,
documentation, drawings, photographs, negatives, tapes and masters therefor, prototypes and other
materials (hereinafter, “items”), including without limitation, any and all such items generated
and maintained on any form of electronic media, generated by the Executive during the Executive’s
employment with the Employer shall be considered a “work made for hire” and that ownership of any
and all copyrights in any and all such items shall belong to the Employer. The item will recognize
the Employer as the copyright owner, will contain all proper copyright notices, e.g., “(creation
date) Molycorp, Inc., All Rights Reserved,” and will be in condition to be registered or otherwise
placed in compliance with registration or other statutory requirements throughout the world.

     7. Non-Competition, Non-Solicitation.

     (a) For the purposes of this Agreement, “Competitive Conduct” shall be determined in good
faith by the Employer and shall include any of the following conduct whether direct or indirect, on
the Executive’s own behalf or on behalf of, or in conjunction with, any person, partnership,
corporation, company or other entity;

          (A) owning, managing, operating, controlling, being employed by, participating in,
engaging in, rendering any services for, assisting, having any financial interest in,
permitting the Executive’s name to be used in connection with, or being connected in any
manner with the ownership, management, operation, or control of any Competitor of the
Employer or its affiliates. For the purposes of this Agreement, a “Competitor” is any
person or entity that engages in the production of rare earth products, including, without
limitation, rare earth oxides, metals, alloys and magnets;

          (B) consulting with, acting as an agent for, or otherwise assisting any Competitor to
compete or prepare to compete with the Employer or its affiliates in any of the Employer’s
or its affiliate’s existing or prospective businesses or activities;

          (C) interfering with the relationship between the Employer and any current or former
employee or consultant of the Employer, including, without limitation, soliciting, inducing,
enticing, hiring, employing, or attempting to solicit, induce, entice, hire, or employ any
current or former employee or consultant of the Employer;

          (D) interfering or attempting to interfere with any transaction in which the Employer
or any of its affiliates is involved or which was pending during the term of

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the Executive’s engagement with the Employer or at the date on which the Executive’s
engagement with the Employer ends, including following the acquisition of the Mountain Pass
Mine;

          (E) soliciting any of the Employer’s customers or prospective customers; and/or

          (F) soliciting, inducing, or attempting to induce any current or prospective customer,
supplier or other business relation of the Employer or any of its affiliates to cease doing
business with the Employer (or any subsidiary, member, parent or other affiliate of the
Employer) or in any way interfering with the relationship between any such customer,
supplier or business relation of the Employer or its affiliates.

     (b) The Executive shall not engage in Competitive Conduct for a period of two (2) years after
termination (whether voluntary or involuntary) of the Executive’s employment with the Employer.

     (c) The Executive shall not engage in Competitive Conduct anywhere in the world.

     (d) The Executive acknowledges and agrees that the restrictive covenants in this Agreement are
designed and intended to protect the Employer’s trade secrets. The Executive further agrees that
the Employer operates in a world-wide, and not a local or regional, market, and the restrictive
covenants in this Agreement are reasonable in duration and geographic scope and are reasonably
necessary to protect the Employer’s legitimate business interests.

     (e) The Executive may serve as a non-executive director of another business or company if, and
only if, the Executive concludes that such service will not interfere with his duties hereunder,
the Executive refers such proposed service to the Board for approval, the Board determines that
such service as a director is in the best interest of the Employer and the Board authorizes the
Executive’s service as a director for such business or company.

     (f) The Employer acknowledges and agrees that the restrictions set forth in this Section 7
shall not limit or prohibit the Executive from engaging in passive investment activities and
business-related, community service, charitable and social activities that do not interfere with
the Executive’s performance of his duties or his obligations hereunder.

     (g) For purposes of Section 6 of this Agreement and this Section 7, the Employer shall include
any and all direct and indirect subsidiary, parent, affiliated, or related companies of the
Employer for which the Executive worked or had responsibility at the time of termination of his
employment and at any time during the two (2) year period prior to such termination.

     (h) If it shall be judicially determined that the Executive has violated Section 7(b) of this
Agreement, then the period applicable to each obligation that the Executive shall have been
determined to have violated shall automatically be extended by a period of time equal in length to
the period during which such violation(s) occurred.

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     8. Communication of Contents of Agreement. While employed by the Employer and for two
(2) years thereafter, the Executive will communicate the contents of Sections 6 and 7 of this
Agreement to any person, firm, association, partnership, corporation or other entity that the
Executive intends to be employed by, associated with, or represent.

     9. No Conflicts. The Executive represents and warrants that the Executive is not
presently subject to any agreement with a Competitor or potential Competitor of the Employer, or to
any other contract, oral or written, that could restrict or prevent the Executive from entering
into this Agreement or performing his duties in full accord with this Agreement.

     10. Executive Representations and Warranties. The Executive hereby represents and
warrants to the Employer that:

     (a) the execution, delivery and performance of this Agreement by the Executive does not and
will not conflict with, breach, violate or cause a default under any agreement, contract or
instrument to which the Executive is a party, or any judgment, order or decree to which the
Executive is subject;

     (b) the Executive is not a party to or bound by any employment agreement, other than the Prior
Agreement, consulting agreement, non-compete agreement, confidentiality agreement, non-disclosure
agreement or similar agreement with any other person or entity;

     (c) the Executive has read through the entirety of this Agreement, and prior to signing it,
the Executive has been advised by independent legal counsel;

     (d) upon the execution and delivery of this Agreement by the Employer and the Executive, this
Agreement will be a valid and binding obligation of the Executive, enforceable in accordance with
its terms; and

     (e) the Executive has been paid or provided all wages, compensation, bonuses, stock, stock
options, vacation, or other benefits due to the Executive under the terms of the Prior Agreement or
the Executive’s employment with Molycorp, LLC.

     11. Acknowledgments. The Executive acknowledges that the covenants contained in
Sections 6 and 7, including those related to duration, geographic scope, and the scope of
prohibited conduct, are reasonable and necessary to protect the legitimate interests of the
Employer. The Executive acknowledges that the Executive is an executive and management level
employee as referenced in, and governed by, C.R.S. 8-2-113(2)(d). The Executive further
acknowledges that the covenants contained in Sections 6 and 7 are necessary to protect, and
reasonably related to the protection of, the Employer’s trade secrets, to which the Executive will
be exposed and with which the Executive will be entrusted.

     12. Equitable Remedies. The services to be rendered by the Executive and the
Confidential Information entrusted to the Executive as a result of the Executive’s employment by
the Employer are of a unique and special character, and any breach of Sections 6 and 7 will cause
the Employer immediate and irreparable injury and damage, for which monetary relief would be
inadequate or difficult to quantify. The Employer will be entitled to, in addition to all other
remedies available to it, injunctive relief and specific performance to prevent a breach and

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to secure the enforcement of Sections 6 and 7. Injunctive relief may be granted immediately
upon the commencement of any such action.

     13. Entire Agreement; Amendments. This Agreement constitutes the entire understanding
between the Parties with respect to the subject matter and supersedes, terminates, and replaces any
prior or contemporaneous understandings or agreements, including but not limited to, the Prior
Agreement, which is superseded by this Agreement and is of no further force or effect. This
Agreement may be amended, supplemented, waived, or terminated only by a written instrument duly
executed by the Parties.

     14. Headings. The headings in this Agreement are for convenience of reference only
and shall not affect its interpretation.

     15. Severability. The covenants in this Agreement shall be construed as independent
of one another, and as obligations distinct from one another and any other contract between the
Executive and the Employer. If any provision of this Agreement is held illegal, invalid, or
unenforceable, such illegality, invalidity, or unenforceability shall not affect any other
provisions hereof. It is the intention of the Parties that in the event any provision is held
illegal, invalid or unenforceable, that such provision be limited so as to effect the intent of the
Parties to the fullest extent permitted by applicable law. Any claim by the Executive against the
Employer shall not constitute a defense to enforcement by the Employer of this Agreement.

     16. Survival. The provisions of Sections 6 and 7 are independent of, and survive
after the termination of, the other portions of this Agreement.

     17. Notices. All notices, demands, waivers, consents, approvals, or other
communications required hereunder shall be in writing and shall be deemed to have been given if
delivered personally, if sent by telegram, telex or facsimile with confirmation of receipt, if sent
by certified or registered mail, postage prepaid, return receipt requested, or if sent by same day
or overnight courier service to the following addresses:

	 	 	If to the Employer, to:

Molycorp, Inc.

5619 Denver Tech Center Parkway

Suite 1000

Greenwood Village, Colorado 80111

Tel: 303-843-8040

Fax: 303-843-8082

     If to the Executive, to:

Mark A. Smith

c/o Molycorp, Inc.

5619 Denver Tech Center Parkway

Suite 1000

Greenwood Village, Colorado 80111

Tel: 303-843-8040

Fax: 303-843-8082

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Notice of any change in any such address shall also be given in the manner set forth above.
Whenever the giving of notice is required, the giving of such notice may be waived by the Party
entitled to receive such notice.

     18. Waiver. The failure of any Party to insist upon strict performance of any of the
terms or conditions of this Agreement shall not constitute a waiver of any of such Party’s rights
hereunder.

     19. Assignment. Other than as provided below, neither Party may assign any rights or
delegate any of obligations hereunder without the prior written consent of the other Party, and
such purported assignment or delegation shall be void; provided that the Employer may assign the
Agreement to any entity that purchases the stock or assets of the Employer or any affiliate. This
Agreement binds, inures to the benefit of, and is enforceable by the successors and permitted
assigns of the Parties and does not confer any rights on any other persons or entities.

     20. Governing Law. This agreement shall be construed and enforced in accordance with
Colorado law, except for any Colorado conflict-of-law principle that might require the application
of the laws of another jurisdiction.

     21. Choice of Forum. Any dispute arising from or relating to this Agreement shall be
resolved in the District Court for the City and County of Denver or in the United States District
Court for the District of Colorado.

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     IN WITNESS WHEREOF, the Parties have executed this Agreement on the dates below:

	 	 	 	 	 	 	 	 	 	 	 	 	 

	EMPLOYER:	 	 	 	EXECUTIVE:
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	MOLYCORP, INC.	 	 	 	 	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	By:
	 	/s/ John F. Ashburn, Jr.	 	 	 	 	 	/s/ Mark A. Smith	 	 
	 	 	 	 	 	 
	Name: John F. Ashburn,
Jr.	 	 	 	Name: Mark A. Smith
	Title: Executive Vice
President and General Counsel	 	 	 	Title: Chief Executive
Officer
	Date: May 21, 2010	 	 	 	Date: May 21, 2010	 	 

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Exhibit A

For purposes of this Agreement:

     1. “Change of Control” shall mean that any other person or group (within the meaning
of Rule 13d-1 under the Exchange Act) that, as of the date hereof, is not the “beneficial owner”
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of a
Controlling interest in the Employer, becomes such a “beneficial owner,” or obtains the right,
directly or indirectly, to elect a majority of the Board.

     2. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended and in
effect from time to time, and any successor statute.

     3. “Control” shall mean (a) the ownership, directly or indirectly, of fifty percent
(50%) or more of the voting equity share capital of the Employer or (b) the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies
of the Employer, whether through the ownership of voting securities, by contract or otherwise.
“Controlling” and “Controlled” shall have correlative meanings. Without limiting the generality of
the foregoing, a person shall be deemed to Control the Employer if it owns, directly or indirectly,
a majority of the ownership or voting interests.

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