Molycorp Minerals Carveout Closes

Chevron Mining Inc. has completed the sale of its Mountain Pass rare earth mining operations to an acquisition company formed by Pegasus Partners, Goldman Sachs, Traxys North America and Carint Group. No financial terms were disclosed. The Englewood, Colo.-based company has be renamed Molycorp Minerals LLC.

ORIGINAL PRESS RELEASE

Chevron Mining Inc. (“Chevron”) today announced that it has entered into an agreement to sell its Mountain Pass rare earth mining operations to Rare Earth Acquisitions LLC (“REA”). The transaction is expected to close in late September, 2008.

REA is a special purpose company owned by Resource Capital Funds, Pegasus Partners IV, LP, The Goldman Sachs Group, Inc., Traxys North America LLC and Carint Group LLC. Included in the acquisition is the Molycorp name and upon closing, the company will be renamed Molycorp Minerals LLC.

Rare earth minerals are used in a wide variety of applications including catalysts for the oil refining industry, neodymium-iron-boron (“NdFeB”) magnets which are used in high energy electric motors like those used in hybrid vehicles, and new high energy battery applications. Mountain Pass is the only significant developed commercial rare earths resource in the western world with enough resources to provide significant levels of global supply for 30 to 50 years. Located about 50 miles south of Las Vegas, Nevada, the operation has produced and sold rare earth products continuously since 1951. In 2007, Chevron Mining Inc. commenced rare earth separations operations using lanthanum concentrates from existing stockpiles to produce didymium (a combination of neodymium and praseodymium) and lanthanum products.

The primary physical assets at Mountain Pass include the mine and ore resources, a flotation mill, and a specialty plant which refines the milled concentrate. Mountain Pass also has large stockpiles of bastnaesite concentrates located on the property. The Mountain Pass operations have an experienced and highly skilled work force, including on site operations personnel and a rare earth research and development team.

About Chevron Mining Inc:

Chevron Mining Inc. is a diversified coal and metal mining company with five US-based mines, including an underground coal mine in Alabama, two surface coal mines in Wyoming and New Mexico, an underground molybdenum mine in New Mexico, and an open pit rare earth mine in California. The company is a wholly-owned subsidiary of Chevron Corporation and is headquartered in Englewood, CO.

About the buyers:

Resource Capital Funds is a private equity firm specializing in investments globally in the mining and minerals sector. The firm was founded in 1998 and operates with over $900 million in assets under management and offices in Denver, Colorado and Perth, Australia. For more information visit the company’s website at www.resourcecapitalfunds.com.

Pegasus Partners IV, LP is an affiliate of Pegasus Capital Advisors, LP, a private equity firm that manages close to $1.8 billion in assets through several private equity funds. The firm provides creative capital solutions to middle market companies across a wide variety of industries, with a particular interest in businesses that make a meaningful contribution to society by positively affecting the environment, contributing to sustainability and enabling healthy living. For more information, visit the firm’s website at www.pcalp.com

Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world. For more information visit the firm’s website www.gs.com.

Traxys North America is an international physical metals and minerals marketing, distribution and trading company with over $4 billion in sales. For more information visit the company’s website at www.Traxys.com. Carint Group is an affiliate of Traxys North America owned by the Traxys managers including Alan Docter and Mark Kristoff.