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

Adanac Molybdenum Corporation

October 25, 2006 06:30 ET

Adanac Moly Corp.: Drill Hole Cuts .137% Mo, .228% MOS2, Over 182.98 Metres, 600 ft, at Ruby Creek Molybdenum Project, Moly @ $25.75 US/lb

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 25, 2006) -

Adanac Moly Corp. (TSX VENTURE:AUA)(PINK SHEETS:ANCGF)(FWB:A9N) ("ADANAC") is pleased to release a second batch of assay results from its angle (-50 degrees) drill-programme at the Ruby Creek Project, located 24 kilometres NE of Atlin, British Columbia. On August 30, 2006, it announced the results for the first six drill-holes (A-06-356 to A-06-361). The current release is for the final seven (A-06-362 to A-06-368). The holes were drilled in the vicinity of old workings in the floor of the Ruby Creek valley, in the Phase 1 pit area of the proposed mine, as defined by Golder Associates in 2005 (see Press Release dated March 6th 2006).

The thirteen holes were drilled in a westerly direction at an angle of -50 degrees to give better coverage of near-vertical veins and fractures in a relatively well-mineralized part of the deposit. Previous, vertical, drilling had emphasized the presence of sub-horizontal veins. The new holes will be used to improve grade-definition in this relatively higher-grade part of the deposit and to provide material for confirming metallurgical test work. As part of the programme, Golder Associates has probed several of the holes with a state of the art optical televiewer and is currently analyzing the data to determine the precise orientation of individual veins and vein sets. This should provide a better understanding of molybdenum grade distribution within the deposit.

The company has now received molybdenum assays for drill-holes A-06-362 to A-06-368 (see table and map; attached). Of these, three (A-06-362, A-06-365 and A-06-368) were collared to the northeast of Kerr Addison's northwesterly trending cross-cut and were drilled back towards it; one (A-06-364) was collared immediately above the cross-cut and explored to the west of it, and three were collared approximately 100 -150 metres to the southwest of it. The latter were drilled to define the western limit of the higher-grade zone.



Adanac's Ruby Creek Molybdenum Deposit:
Mineralized Intervals: 2006 Drill Programme

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From To Length Average
Drill Hole # (m) (m) (m) %Mo(i)
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A-06-362 9.45 192.02 182.57 0.075
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Includes 30.48 94.49 64.01 0.101
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Includes 9.45 12.19 2.74 0.208
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Includes 73.15 76.2 3.05 0.224
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Includes 88.39 91.44 3.05 0.219
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A-06-363# 41.45 206.05 164.6 0.059
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Includes 54.65 161.54 106.9 0.082
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A-06-364 32.31 215.19 182.88 0.137
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Includes 44.5 47.55 3.05 0.624
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Includes 50.6 53.65 3.05 1.636
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Includes 62.79 65.84 3.05 0.357
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Includes 65.84 68.89 3.05 0.387
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Includes 108.51 111.56 3.05 0.286
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Includes 129.84 132.89 3.05 0.316
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A-06-365 15.24 222.5 207.26 0.05
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Includes 88.39 91.44 3.05 0.286
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Includes 149.35 152.4 3.05 0.312
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A-06-366 56.69 215.19 158.5 0.034
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Includes 105.46 142.04 36.58 0.046
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Includes 190.8 193.85 3.05 0.257
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A-06-367 44.5 151.18 106.68 0.07
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Includes 81.08 84.13 3.05 0.259
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Includes 108.51 111.56 3.05 0.305
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A-06-368 10.97 209.09 198.12 0.071
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Includes 17.07 20.12 3.05 0.246
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Includes 35.36 38.41 3.05 0.343
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Includes 50.6 53.65 3.05 0.226
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Includes 65.84 68.89 3.05 0.309
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(i) Determinations based on assay intervals of 3.05 metres:
Values greater than 0.2% Mo listed.
# Missing data to 41.45 metres


Drill-hole A-06-364 intersected a large number of both near-vertical and near horizontal mineralized quartz veins and averaged 0.137% Mo over 182.88 metres. The average includes one particularly high-grade assay (1.636% Mo over 3.05 metres from 50.6 to 53.65 metres); however, the drill-core is well mineralized throughout the length of the assayed section. The styles and grades of mineralization encountered are similar to those found in previous drill-programmes; however, there appears to be a greater abundance of steep to near vertical quartz veins. Similar structures occur in the higher-grade sections of A-06-357; A-06-359 and A-06-361 (see Press Release dated August 30th, 2006).

Drill-hole A-06-362 passed below the cross-cut and appears to have undercut the higher-grade zone exposed in the underground workings. It assayed 0.075% Mo over 182.57 metres. Similarly, A-06-368 under-cut the zone below the south end of the cross-cut. It assayed 0.071% Mo over 198.12 metres with better grade material near the top of the section. Drill-hole A-06-365 was collared near the northeastern limit of the deposit and drilled back into it. It averaged 0.05% Mo over 207.26 metres.

Drill-holes A-06-363, A-06-366 and A-06-367 were collared to the southwest of the higher-grade zone and drilled away from it. They terminated in relatively barren rock and their mineralized sections are shorter than for those collared to the northeast. Assay data show that A-06-363 (for which assays for the first 51.45 metres are missing) averaged 0.059% Mo over 164.60 metres; A-06-366 contained 0.034% Mo over 158.50 metres and A-06-367 assayed 0.07% Mo over 198.12 metres.

The Company is encouraged by the grades encountered in the 2006 drill programme, and by their consistency in and around the higher-grade zone. Although there are relatively few assays in excess of 0.2% Mo over 3.05 metres, there are considerable thicknesses of rock averaging in excess of 0.07% Mo. Golder Associates work on the orientation of the mineralized veins will add considerable to the Company's understanding of the controls on grade distribution in the Ruby Creek Deposit, and enable it to provide better definition of the grades likely to be encountered in the first few years of production at the proposed mine.

The Qualified Person in connection with this press release and in respect of the Atlin, Ruby Creek Project is Dr. Robert Pinsent, PhD., P.Geo, Exploration Manager, who is responsible for verification and quality assurance of the exploration data and analytical results set forth in this release. Assays were completed by Acme Analytical Laboratories Ltd. of Vancouver, B.C.

Further assays will be released as they are received.

On Behalf of Management

ADANAC MOLY CORP.

Larry W. Reaugh, 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.

To view the map accompanying this press release please click on the following link: http://www.ccnmatthews.com/docs/AD1024.pdf

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

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