Adanac Ruby Creek Molybdenum Project Review

Adanac Molybdenum Corporation (AUA: TSX.V, Pink Sheets: AUAYF, Frank: A9N) is pleased to report that G & T Metallurgical Services Ltd. (Kamloops, BC) have completed the program of laboratory and pilot plant testing of more than two tonnes of Ruby Creek drill core rejects. This work, done to confirm the earlier basis established by MinnovEX for the bankable feasibility, has been successful. G & T’s data confirm and exceed the results achieved and reported in Adanac’s feasibility report (Wardrop 2006). Extensive mineralogical examination of the major process streams show that the molybdenum values are essentially associated with non-sulphide gangue and can be easily recovered via re-grinding and careful cleaning of the primary flotation concentrate. Three stages of cleaning were used in the lock cycle tests. Overall Mo recovery is indicated to be in the range 92–93% which is significantly higher than reported previously.

Two composite samples were made. Composite #1 comprised drill core and drill core rejects remaining from the 2004 and 2005 vertical drilling campaigns, while Composite #2 comprised drill core rejects from the 2006 angle hole drilling. Materials from Composite #1 were used to calibrate the pilot plant scale process test program.

The average metallurgical results are summarized from the lock cycle tests.

The lock cycle results were achieved consistently and are based on a significantly coarser primary grind (P80 = 300 microns vs. P80 = 210 microns) and much lower reagent consumption than was the basis for bankable feasibility. This will enable higher thru put at lower unit cost of production when the mill is in operation.

Two kilograms of MoS₂ concentrate were produced from pilot plant operations: 1.2 kgs of average grade MoS₂ is available for evaluation by potential end users. The resulting average grade molybdenite concentrate assays, on un-deoiled basis, are:

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.