Adanac's Ruby Creek Process & Infrastructure Feasibility Show Reduced Capital and Operating Costs

Adanac Moly Corp. (AUA: TSX.V, Pink Sheets: ANCGF, Frank: A9N) is pleased to announce that Wardrop Engineering Inc. (WARDROP) has completed the Ruby Creek Molybdenum project’s process and infrastructure design to feasibility level.

Capital costs for the proposed 20,000 tonne per day concentrator, associated infrastructure, water supply and tailings facility is estimated to be CDN $364.4 million, including a 15% contingency. Processing, infrastructure and general administration operating costs are determined to be CDN $7.76/tonne for the first 5 years based on diesel generated power and CDN $5.20/tonne thereafter upon connection to grid power. The capital and operating costs are lower than those estimated in the Preliminary Feasibility and are presented below:

The process design is based on extensive bench scale testing of drill core samples from the 2004 & 2005 exploration work which were carefully selected to include proportional amounts of lithologies expected in mill feed during the mine life. Additional testing has confirmed and expanded the work reported in the Preliminary Feasibility and confirmed that a premium grade molybdenite concentrate grading between 90% and 92% MoS2 can be produced. Overall Mo recovery of 90% or better is expected using a conventional crushing, grinding and flotation process.

WARDROP’S work also includes the results of test work, done to evaluate potential technical and economic benefits of using high pressure grinding rolls (HPGR) in place of conventional SAG milling. These tests demonstrated that the technology is suitable for Ruby Creek material and that a reduction of 30% of the power used in the grinding circuit is achievable. This amounts to more than 3kWh/tonne milled. In addition an average 5% increase in mill availability adding 400,000 tonnes annual milling capacity could be attained. Together, these factors can bring about a significant increase in project margins. WARDROP recommends that the HPGR option be developed further to detailed engineering design.

Mr. Rick Alexander P.Eng. an independent qualified person as defined by NI-43-101 has supervised and co-ordinated WARDROP’S work on the Ruby Creek Molybdenum Project.

WARDROP have been commissioned to prepare the overall NI-43-101 compliant feasibility report which is expected later this month.

ADANAC’S Ruby Creek Project is a proposed open pit molybdenum mine near Atlin, B.C. It is being developed to operate at 20 000 tonnes via the concentrator per day for more than 20 years. The company believes this is a sound project with minimal long term environmental effects and significant positive socio-economic benefits to the local community, Taku River Tlingit First Nation people and the province of British Columbia.

This press release was prepared by John W. Fisher, C.Eng., P.Eng., a Qualified Person pursuant to National Instrument 43-101.

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.