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

Adanac Molybdenum Corporation

December 29, 2006 13:02 ET

Adanac Molybdenum Corporation: US Private Placement Closes

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 29, 2006) - Adanac Molybdenum Corporation (TSX VENTURE:AUA)(PINK SHEETS:ANCGF)(FWB:A9N) -

The Company announces the closing of the US part of its private placement announced on November 6, 2006 for proceeds of Cdn $4,272,745 comprising of 4,188,966 Units, each Unit consisting of one common share in the capital of the Company (a "Common Share") at a price of $1.02 Cdn per share and one common share purchase warrant (a "Warrant") for a four year term, exercisable in the first year at a price of $1.50 per share, in the second year $1.75 per share, in the third year $2.00 per share and in the fourth year $2.25 per share.

The proceeds of this offering will be used to enter into a detailed engineering & procurement contract, corporate overhead and for hiring additional personnel.

A commission was payable to Olympus Securities LLP 7% of the gross proceeds payable in cash and 7% in agent's warrants on the same terms as applied to the warrants in the offering.

On Behalf of Management

ADANAC MOLYBDENUM CORP.

Larry W. Reaugh, Chairman of the Board

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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