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

Adanac Molybdenum Corporation

May 02, 2008 12:46 ET

Adanac Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 2, 2008) -

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

Adanac Molybdenum Corporation (TSX:AUA)(PINK SHEETS:AUAYF)(FRANKFURT:A9N) ("Adanac" or the "Company") is continuing to re-structure itself in preparation of the resumption of full scale project construction upon the contemplated mid-May, 2008 closing of the bridge financing, announced on April 15, 2008, and subsequent overall project financing initiative underway as announced on October 17, 2007. The bridge financing would be in the form of senior secured notes, and would include the issuance of warrants to purchase up to 19.99% of the equity of the Company, including the amount of such warrants, on a fully diluted basis. Completion of the balance of the project financing is targeted for the summer of 2008.

As announced on March 27, 2008, Dr. David Stone has assumed the role of CEO of the Company, and will assume responsibilities for corporate governance, strategic investments, and corporate administration. Mr. Michael MacLeod, as COO, has assumed direct responsibility for project development and subsequent operation of the mine, mill and related infrastructure; with Mr. Paul Zimmerman, Engineering Manager, and Mr. Michael Sung, Construction Manager, providing additional management and technical support.

Mr. Rick Alexander (Vice President, Project Development), Mr. Mike Petrina (General Manager), and Mr. David Kwok (Chief Financial Officer) have resigned. Mr. Kelvin Lee CGA., Corporate Controller, has assumed the role of CFO for the Company on an interim basis. Ms. Gayle Dalli, Vice President Finance, has been recently hired and will assume responsibility for helping secure project financing. She will work closely with the Company's CFO and CEO on treasury and investment issues.

Subject to receipt of financing, and in the normal course of business, additions to the management team will be recruited to support the needs of the Company. The Company's human resources plan can be implemented on short notice to acquire the management, staff, construction and operating personnel to execute the work planned for 2008, 2009 and beyond.

Adanac Molybdenum Corporation is engaged in the exploration and development of mines to produce molybdenum and other ferro-alloy metals. Its flagship property is the Ruby Creek molybdenum project located near Atlin, BC. The property contains an open pit reserve of 157.7 million tonnes grading 0.058% Mo using a 0.040% cut-off grade. This news release has been reviewed by Michael MacLeod, P.Eng. a qualified person pursuant to National Instrument 43-101 and the President and Chief Operating Officer, of the Company.

On Behalf of Management ADANAC MOLYBDENUM CORPORATION

David Stone, Chief Executive Officer

This release is not an offer of securities for sale in the United States.

Any securities that the Company may offer for sale in the future may not be offered or sold in the United States unless registered under the United States Securities Act of 1933 or unless an exemption from registration is available.

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.

Contact Information

  • Adanac Molybdenum Corporation
    David Stone
    CEO
    (604) 535-6834
    (604) 536-8411 (FAX)
    or
    Adanac Molybdenum Corporation
    Corporate Office
    (604) 531-9639
    (604) 531-9634 (FAX)
    Email: info@adanacmoly.com
    Website: www.adanacmoly.com