Adanac Molybdenum Corporation
FRANKFURT : A9N
PINK SHEETS : AUAYF
TSX : AUA

Adanac Molybdenum Corporation

December 21, 2007 09:58 ET

Adanac Molybdenum Corporation Announces Final Terms to Previously Announced Financing

Proceeds to Partially Fund Construction, Equipment Purchases, and for Flow-Through Eligible Expenditures For Ruby Creek Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2007) - Adanac Molybdenum Corporation (TSX:AUA)(PINK SHEETS:AUAYF)(FRANKFURT:A9N) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Following the December 10, 2007 filing of a preliminary short form prospectus in the Provinces of British Columbia, Alberta and Ontario in respect of an offering (the "Offering") to raise up to $15 million to partially fund construction of the company's proposed Ruby Creek molybdenum project.

Under this Offering the Company seeks to raise up to the $15 Million total with two classes of securities:

- flow-through shares at a price of $1.05; and

- units at $0.95, with each unit consisting of one common share and one-half of one common share purchase warrant at a price of $ 1.20 with each warrant to be exercisable for a period of 24 months from the applicable closing date.

The entire transaction is scheduled to close December 31, 2007.

The Offering will be conducted on a best efforts agency basis. Haywood Securities Inc. and MGI Securities Inc. are the co-lead agents of the syndicate that includes D&D Securities Company, Desjardins Securities Inc., Fraser Mackenzie Ltd. and Jennings Capital Inc. (collectively, the "Agents").

In consideration for the services to be rendered by the Agents under the Offering, the Agents will receive a cash commission of 5% of the gross proceeds of the shares sold, Agents options entitling the Agents to acquire Units in the amount that is equal to 5% of the aggregate number of Units and Flow-through shares sold pursuant to the Offering.

The equity offering follows Adanac's October 17, 2007 announcement that the Company is retaining a U.S. investment bank in respect of a proposed debt offering totaling US$600 million. Use of proceeds of the proposed debt offering will be used for the Ruby Creek project.

About Adanac Molybdenum

Adanac Molybdenum Corporation is engaged in the exploration and development of mines to produce molybdenum and ferro-alloy metals. Adanac's flagship property is the proposed Ruby Creek molybdenum project, located near Atlin, B.C. The property contains open pit reserves of 157.7 million tonnes grading 0.058% Mo at a 0.040% Mo cut-off grade. Procurement of long lead time equipment has been completed and construction has begun.

This news release has been reviewed by Rick Alexander, P.Eng, a qualified person pursuant to National Instrument 43-101.

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.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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