Additional $7,500,000 Private Placement

Adanac Molybdenum Corporation (AUA: TSX.V, Pink Sheets: AUAYF, Frank: A9N), wishes to announce a further private placement of 3,947,369 units (the “Units”) of the Company at a price of $1.90 per Unit for aggregate proceeds of $7,500,000 (the "Offering") on a private placement basis. Each Unit will consist of one common share (a "Share") and one-half of one common share purchase warrant (a "Warrant"), with each whole Warrant being exercisable for a period of two years after the closing of the Offering at a price of $3.00 per share.

This private placement is being announced to accommodate US purchasers pursuant to a private placement arranged by Olympus Securities, LLC in the last quarter of 2006, which purchasers have opted to exercise the full amount of their option to participate in the Company’s current private placement on the same terms and conditions as pertain to the bought deal private placement with GMP Securities LP.

The Offering is subject to applicable regulatory filings and approvals.

All references to dollar amounts are stated in Canadian Dollars.

On Behalf of Management

ADANAC MOLYBDENUM CORPORATION

Larry W. Reaugh,
Chairman of the Board

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