Adanac Molybdenum Corporation

Adanac Molybdenum Corporation

January 28, 2008 09:20 ET

Adanac Focusing on Critical Path

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2008) -


Adanac Molybdenum Corp. (the "Company")(TSX:AUA)(PINK SHEETS:AUAYF)(FRANKFURT:A9N) has decided to slow down its on-site construction activities for the development of its Ruby Creek Molybdenum Project. The Company has no plans to de-mobilize any of the installed construction facilities or site development construction equipment. Moreover, the exploration drilling program that is currently underway to expand the near pit mineralization announced previously (September 13, 2007) will continue as planned through February and March.

The Company continues to aggressively advance the Project by focusing its resources on the detailed engineering and construction planning that is underway, and expediting of the long lead time processing and mining equipment. The minor schedule disruptions related to curtailing the winter site work program can be reasonably mitigated by good planning and higher productivities that can be achieved during the long summer daylight hours. Concentrating on those elements that are on the critical project development path is just good practice.

"The current financial market distress does not impact the real fundamentals of the Ruby Creek Project. The molybdenum price and demand are solid, and project costs are well controlled by the early ordering of the major pieces of process equipment. The Project remains economically sound and robust, environmentally sustainable, and socially acceptable." says Michael MacLeod, President and CEO. "Since receipt of the Special Use Permit on November 7, 2007 and the Pre-Construction Mines Act Permit on December 21, 2007; upgrading the road to accommodate highway traffic, including installation of a bridge spanning Boulder Creek, from the Surprise Lake Bridge to the Project site has been completed."

Activities associated with securing all of the financing required to build the Project will be accelerating rapidly in early February. While the volatility and uncertainty currently plaguing the financial markets is problematic, the Company expects that the diligent financial ground work prepared by its team of highly experienced technical, legal, and financial advisors and investment houses; that has been underway since October 2007; will facilitate an expeditious closing. Terms and details of the financial arrangements will be released as they become available.

Adanac Molybdenum Corp. 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 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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