Adanac Molybdenum Corporation

Adanac Molybdenum Corporation

December 24, 2007 08:30 ET

Adanac Molybdenum Corporation: Ruby Creek Receives Approval to Begin Onsite Construction

Provincial approval follows previous permit for road construction

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 24, 2007) -


Adanac Molybdenum Corporation (TSX:AUA)(PINK SHEETS:AUAYF)(FRANKFURT:A9N) today announced the British Columbia Ministry of Energy Mines and Petroleum Resources has issued a permit approving pre-construction work program at the Company's Ruby Creek open-pit mine site near Atlin, B.C. The permit was issued on December 21, 2007 pursuant to Section 10 of the Mines Act R.S.B.C. 1996, c 293.

"This receipt achieves another major milestone for the project, and allows site preparation and construction to begin onsite immediately in the New Year," said Michael MacLeod, President and CEO. "In addition, the previously announced upgrading of the access road from the Surprise Lake bridge to the mining lease, including the installation of the new bridge over Boulder Creek, was completed on December 19. The coming year will be very exciting as construction continues to ramp up."

Construction is scheduled to continue immediately following the Christmas break. Timely resumption of activities is enabled by extensive preparations undertaken by Ledcor CMI Ltd. of Vancouver and its local and regional subcontractors. Preparations include an operational 50-person construction camp, equipment laydown area, fuel storage facility and telecommunications setup. Construction will expand in scope and scale as site development accelerates through the winter months. Activities will include onsite road upgrading, excavation of overburden, installation of a 550-person onsite camp and preparation of all associated construction infrastructure.

Detailed engineering of the Ruby Creek project began in November 2006 and procurement of long lead time items got under way in March 2007. The Company announced a production decision and received the provincial Environmental Assessment Certificate in September 2007. In November 2007 a provincial special use permit was issued, authorizing construction of the project access road and associated earthworks. Adanac is currently arranging equity and debt financing to build the mine and infrastructure.

About Adanac Molybdenum

Adanac Molybdenum Corporation is engaged in the exploration and development of mines to produce molybdenum and ferro-alloy metals. The Company aims to become the first new large scale primary producer of molybdenum in 25 years. 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.

This news release has been reviewed by Michael E. MacLeod, 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.

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