Adanac Molybdenum Corporation

Adanac Molybdenum Corporation

March 23, 2006 06:30 ET

Adanac to Pursue High Pressure Grinding Rolls 'HPGR' Technology for Ruby Creek Molybdenum Project-ECA Permit Filed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2006) - Adanac Moly Corp. (TSX VENTURE:AUA)(FWB:A9N) ("Adanac") is pleased to report it has extended its contract with Wardrop Engineering Inc. (WARDROP) to include definitive engineering work in support of high pressure grinding rolls (HPR) technology for its Ruby Creek Project near Atlin B.C.

The change order, whose value is $160 000 to its existing contract with WARDROP, is acceptance of their proposal to extend work currently underway. The continuing efforts will include one or more bulk grinding tests in Europe to confirm results of the initial test done December 2005 and detailed engineering to establish the most suitable means for inclusion of HPGR within the concentrator proposed for Ruby Creek. This technology has the potential to reduce power consumption in the proposed 20 000 tonne per day concentrator by 30% or more when compared with conventional SAG milling. Additional reduction of power in the subsequent ball milling stage may also be attainable but the probable increase in overall mill availability by as much as 5% (91% to 96%) is of high economic significance.

The Company is committed to the development of the most up to date and economically productive operation at its Ruby Creek property near Atlin, B.C. which will have significant benefits for both the First Nations and local communities as well as providing a source of income to the B.C. Government.

The Company has filed the Environmental Certificate Application with the BC Environmental Assessment Office to be completed within 180 days. The Environmental Impact Assessment was prepared under project - specific terms of reference, which were developed by a working group consisting of government agencies and the Taku River Tlingit First Nation (TRTFN).

On Behalf of Management


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.

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

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