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

Adanac Molybdenum Corporation

April 18, 2007 09:30 ET

Adanac Closes Financings for $40.6 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 18, 2007) -

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

Adanac Molybdenum Corporation (the "Company") (TSX VENTURE:AUA)(PINK SHEETS:AUAYF)(FRANKFURT:A9N) is pleased to announce that, further to its news release dated March 29, 2007, the Company has completed its private placement (the "Offering") of 18,157,895 units (the "Units") at $1.90 per Unit for aggregate proceeds of $34,500,000.50 on a "bought deal" basis. Each Unit consists of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one additional Common Share of the Company for a period of two years at a price of $3.00 per Common Share. The 18,157,895 Units placed pursuant to the Offering include 2,368,421 Units issued to the Underwriters (as defined below) as over-allotment Units at a price of $1.90 per over-allotment Unit pursuant to the exercise of an over-allotment option granted to the Underwriters.

The Company paid to GMP Securities L.P., MGI Securities Inc., Dundee Securities Corporation, Evergreen Capital Partners Inc. and Fraser Mackenzie Limited (collectively, the "Underwriters") a cash commission equal to 6% of the aggregate proceeds from the placement of 18,157,895 Units pursuant to the Offering. In addition, the Company issued to the Underwriters 1,089,473 broker warrants (the "Broker Warrants"). Each Broker Warrant entitles the holder thereof to purchase one broker unit (a "Broker Unit") at a price of $1.90 per Broker Unit for a period of two years. Each Broker Unit consists of one broker unit share (a "Broker Unit Share") and one-half of one broker unit warrant (each whole broker unit warrant, a "Broker Unit Warrant"). Each Broker Unit Warrant entitles the holder thereof to purchase one broker unit warrant share (a "Broker Unit Warrant Share") at a price of $3.00 for a period of two years.

The Company paid to the Underwriters a management fee of $245,781.49 in connection with the Offering.

In addition, the Company is pleased to announce that, further to its news release dated March 30, 2007 in connection with the Offering, the Company has completed a further private placement of 3,233,967 Units of the Company at a price of $1.90 per Unit for aggregate proceeds of $6,144,537.30 to U.S. purchasers (the "Previous U.S. Purchasers"), who acquired securities of the Company pursuant to a private placement of the Company arranged by Olympus Securities, LLC (the "Agent") and completed in December 2006.

In connection with the Offering, the Company paid to the Agent, a cash commission equal to 6% of the aggregate proceeds of the Offering from the sale of 3,233,967 Units to the Previous U.S. Purchasers. In addition, the Company issued to the Agent 194,038 agent warrants (the "Agent Warrants"). Each Agent Warrant entitles the holder thereof to purchase one agent unit (an "Agent Unit") at a price of $1.90 per Agent Unit for a period of two years. Each Agent Unit consists of one agent unit share (an "Agent Unit Share") and one-half of one agent unit warrant (each whole agent unit warrant, an "Agent Unit Warrant"). Each Agent Unit Warrant entitles the holder thereof to purchase one agent unit warrant share (an "Agent Unit Warrant Share") at a price of $3.00 for a period of two years.

The total of 21,391,862 Units issued pursuant to the Offering are subject to a hold period expiring August 18, 2007.

The proceeds of this Offering will be used to fund the detailed engineering and procurement contract for the Ruby Creek Molybdenum project (Awarded to AMEC Americas Limited on December 20, 2006), for corporate overhead and for hiring additional personnel.

On Behalf of Management

ADANAC MOLYBDENUM CORPORATION

Michael MacLeod, President and Chief Executive Officer

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 Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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