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

Adanac Molybdenum Corporation

August 11, 2008 16:41 ET

Adanac Molybdenum Corporation: Ruby Creek Project-$26 Million Building Fabrication Award

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 11, 2008) - Adanac Molybdenum Corp. ("Adanac or the Company") (TSX:AUA)(PINK SHEETS:AUAYF)(FRANKFURT:A9N) announces it has awarded Supreme Steel Ltd. of Edmonton, Alberta the fabrication of the Ruby Creek Project Power Plant Building, Crusher Building, Process Building and Maintenance Building, at a total cost of approximately $26 million.

The order includes building steel frames, some interior platforms, doors and cladding, which will be fabricated at Supreme's Edmonton and Delta shops. Transportation to the Ruby Creek site is scheduled to start in June 2009.

Adanac has previously ordered long delivery mining and processing equipment to allow the project site construction to start in February 2009 and production to start in Q4 2010.

The project equipment and material orders to date total approximately $137 million.

The Company has also previously constructed a road to site as well as installed a 100 man camp and has received all necessary permits to construct the mine.

The Company has previously raised bridge financing of US$80 million and the process to source the final construction financing is underway.

Peter R. Jones, Adanac CEO, said, "Our project is the most advanced large scale open pit primary molybdenum mine in the world today and we are on track for a Q4 2010 production start." He also said, "We plan to complete project funding this year and then start site construction in early 2009."

About Adanac Molybdenum Corporation

Adanac Molybdenum Corporation is listed on the TSX and Frankfurt exchanges and owns the Ruby Creek Molybdenum Project in Northern British Columbia. The Company has advanced the project through feasibility studies, a production decision and has previously ordered long-lead equipment, completed permitting for construction, constructed a road to the site and secured $80 million in bridge financing. The Company is sourcing final construction funding and expects a site construction start in February 2009 and production in Q4, 2010.

Cautionary Notice: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States securities laws. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking information. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward looking information include risk factors discussed in the Annual Information Form for the year ended April 30, 2008 for the Company available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities law, and may not be offered or sold in the United States unless an exemption from registration is available.

Contact Information