Private Placement Closes

Adanac Molybdenum Corporation (AUA: TSX.V, Pink Sheets: AUAYF, Frank: A9N) is pleased to announce that, further to its news releases dated November 6, 2006, and January 4, 2007, it has completed an additional tranche of the Canadian portion of its private placement for proceeds of $538,708.92 comprising 528,146 units (the Units) at $1.02 per unit (the "Offering"). Each Unit consists of one common share of the Company (a "Common Share") and one common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to purchase one additional Common Share of the Company for a four year term at an exercise price of $1.50 per share in the first year, $1.75 in the second year, $2.00 in the third year and $2.25 in the fourth year.

Of the units issued, 330,646 are subject to hold periods expiring May 23, 2007 and 197,500 are subject to hold periods expiring June 3, 2007.

The Company paid a cash commission to D&D Securities Company and its sub-brokers ("D&D") equivalent to 7% of the gross proceeds of the brokered portion of the Offering, and issued to D&D agent’s warrant equivalent to 7% of the gross proceeds of the Offering. Each whole agent’s warrant entitled the holder to purchase one additional Common Share of the Company for a period of 18 months at a price of $1.02 per share.

The total amount raised in Canada pursuant to this private placement is $9,088,174.50 comprising 8,909,975 Units, and the total amount raised in the US is $4,272,745 comprising 4,188,966 Units, for aggregate gross proceeds of $13,360,919.50.

The proceeds of this offering will be used to fund the detailed engineering and procurement contract for the Ruby Creek Molybdenum project (Awarded to AMEC Americas Limited on December 20, 2006), for corporate overhead and for hiring additional personnel.

INCENTIVE STOCK OPTIONS

The Company will grant incentive stock options to purchase an aggregate of 200,000 shares in the capital stock of the Company. The option will be granted for a period of five years commencing February 7, 2007, at $1.20 per share.

The Employee/Director stock options are subject to the approval of the regulatory authorities.

On Behalf of Management

ADANAC MOLYBDENUM CORPORATION

Michael MacLeod,
President & Chief Executive Officer

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Stock Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.