Executive Summary - Ruby Creek: A Clean Porphyry Molybdenite Resource

Mr. Larry W. Reaugh, President & CEO, Adanac Moly Corp. (TSX.V: AUA, Frank: A9N), is pleased to report the results of the Ruby Creek Molybdenum feasibility are positive and Wardrop Engineering Inc. recommends continuing development through detailed engineering, which is set to commence during the second quarter of 2006.

PROJECT SUMMARY

Mine Life: 21 years
Milling Rate: 20,000 tonnes per day
Strip Ratio: 0.95 (waste)/1.0 (ore)
Tonnage milled: 143.7 million tonnes, average grade 0.059% Mo
Average Recovery: 89%
Molybdenum in concentrate: 75.9 million kilograms (167.4 million pounds)
Base Case: IRR 24.42%, NPV @ 8% = $222.2 Million, Payback = 3.1 Years

The Company is proceeding with the Engineering Study on the High Pressure Grinding Rolls (HPGR) through Wardrop Engineering. It is expected that the concentrator will incorporate the HPGR system instead of the base case SAG Mill design. This aspect alone will increase the IRR to 28.85%, NPV to $305,100,000 and payback period reduced to 2.9 years.

Diamond drilling within the pit to begin in June for metallurgical samples, will also incorporate angle holes over the high grade portion of the open pit. The purpose of drilling the angle holes is to penetrate the vertical mineralized fractures (not encountered in vertical holes) which were picked up on the 10,000 tonne bulk testing in 1970.

A sensitivity on the project economics was carried out to determine the impact of a potential 15% increase in the grade of ore. The case for considering potential increase in grade is based on detailed drill hole bulk sampling studies described in Kaiser Engineers, ”Feasibility Study of the ADANAC Molybdenum Project” prepared for Kerr Addison Mines Ltd., Report No. 71-1, (January 1971). While this work is not NI43-101 compliant, the results from bulk sampling indicated higher grades than the drill program by as much as 20%. For the purpose of the sensitivity study only a grade increase of +15% was assumed. The project IRR increases to 35.03% and the NPV increases to C$405 million at an 8% discount.

MOLYBDENUM OUTLOOK

At a conservative long term demand growth projection of 2%, an additional 3.5 million kgs Mo (7 million lbs Mo) per annum will be required to meet demand. If growth in demand continues at the current rate of 3% per annum the annual additional quantity required becomes 4.5 million kg Mo (10 million lbs Mo) and 7.5 million kg Mo (16 million lbs Mo) at 5% annual growth rate.

There is clearly a need for additional mine output. In a report for AIM-listed International Molybdenum PLC issued in July 2005, consultant CRU Strategies estimated that global moly supplies would total under 350 million lbs in 2005 but be in deficit by between 6 and 26 million lbs on base case and upper case scenarios by 2009.

This press release is reviewed by John W. Fisher, C.Eng., P.Eng., an independent qualified person as defined by NI43-101. Mr. Fisher visited the Ruby Creek property on June 21, 2005.

On Behalf of Management

ADANAC MOLYBDENUM CORPORATION

Larry W. Reaugh,
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.