$30,000,000 Bought Deal Financing

Adanac Molybdenum Corporation (AUA: TSX.V, Pink Sheets: AUAYF, Frank: A9N), announces that it has entered into an agreement with GMP Securities L.P., MGI Securities Inc., Dundee Securities Corporation, Evergreen Capital Partners Inc., and Fraser Mackenzie Limited (collectively the "Underwriters") whereby the Underwriters will purchase 15,789,474 units (the "Units") of the Company at a price of $1.90 per Unit for aggregate proceeds of $30,000,000 (the "Offering") on a "bought deal" underwritten 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. The Company has also granted to the Underwriters a 15% over-allotment option, which, if exercised by the Underwriters up to 48 hours prior to the closing of the Offering, will allow the Underwriters to purchase an aggregate of up to 2,368,421 additional Units at a price of $1.90 per Unit.

The Company has agreed to pay to the Underwriters a commission equal to 6% of the aggregate gross proceeds of the Offering. In addition, the Company agreed to issue to the Underwriters broker warrants exercisable for units of the Company having the same attributes as the Units equal to 6% of the number of Units sold under the Offering at a price of $1.90 per unit. 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,
Executive Chairman

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