Adanac Molybdenum Corporation

Adanac Molybdenum Corporation

April 15, 2009 17:44 ET

Adanac Reports Substantial Increase in Ruby Creek Mineral Resources

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 15, 2009) - Adanac Molybdenum Corporation ("Adanac" or the "Company") (TSX:AUA)(PINK SHEETS:AUAYF)(FRANKFURT:A9N) announced today an updated Mineral Resource Estimate (the "April 2009 Mineral Resource Estimate") for its 100%-owned Ruby Creek molybdenum deposit located in northern British Columbia, Canada (the "Ruby Creek Project"). At a cut-off grade of 0.04% molybdenum ("Mo"), the resources are now estimated at 43.6 million tonnes at an average grade of 0.078% Mo (with 75.4 million pounds of contained Mo) classified as Measured Mineral Resources, 231.7 million tonnes at an average grade of 0.065% Mo (with 332.6 million pounds of contained Mo) classified as Indicated Mineral Resources, and an additional 39.1 million tonnes at an average grade of 0.062% Mo (with 53.7 million pounds of contained Mo) classified as Inferred Mineral Resources. The April 2009 Mineral Resource Estimate was independently prepared by Golder Associates Ltd. ("Golder").

The April 2009 Mineral Resource Estimate incorporates the previously announced results of the Company's Ruby Creek 2007/2008 diamond drilling program. This program included 60 new drill holes. In total, 338 drill holes with a combined length of approximately 69,200 meters and 21,651 assay samples were used in the determination of the April 2009 Mineral Resource Estimate.

Christopher C. Kirby, President and Chief Executive Officer, said: "This new resource estimate represents an increase of 38% of contained molybdenum in the Measured and Indicated classification over the prior estimate that was used in the December 2007 feasibility study." He added: "I am extremely pleased with the very substantial addition to Ruby Creek's resources which surpassed my expectations and suggests significant upside potential to increase the mine life or production rate."

The April 2009 Mineral Resource Estimate at a 0.04% cut-off is summarized in the following table:

Classification Quantity (tonnes) Mo (%) Contained Mo (lbs)
Measured 43,642,000 0.078 75,361,000
Indicated 231,712,000 0.065 332,550,000
Total Measured and 275,354,000 0.067 407,911,000
Inferred 39,076,000 0.062 53,719,000

The April 2009 Mineral Resource Estimate is reported in accordance with Canadian Securities Administrators' National Instrument 43-101 ("NI 43-101") and has been estimated in conformity with the Canadian Institute of Mining, Metallurgical and Petroleum (CIM) Mineral Resource and Mineral Reserve definitions referred to in NI 43-101, Standards of Disclosure for Mineral Projects. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves. The April 2009 Mineral Resource Estimate was prepared by Kevin Palmer, P. Geo, of Golder, an independent qualified person as this term is defined in NI 43-101. The April 2009 Mineral Resource Estimate used a geostatistical-block model technique with Ordinary Kriging methods and Datamine Studio 3 software package.

In 2006, Golder calculated that the Ruby Creek deposit contained a NI 43-101 compliant Measured and Indicated Mineral Resource of 212.9 million tonnes of 0.063% Mo representing 295.7 million pounds of contained Mo at a 0.04% cut-off. The April 2009 Mineral Resource Estimate indicates a Measured and Indicated Mineral Resource of 275.4 million tonnes of 0.067% Mo representing 407.9 million pounds of contained Mo. A new NI 43-101 technical report will be filed with regulators on SEDAR within 45 days of this news release.

Federal Permitting Update

The Company also announced today the successful completion of the Government of Canada's Environmental Assessment Process of the Ruby Creek Project. This process, which was initiated in August 2006, involved a comprehensive evaluation from provincial and federal regulatory authorities including consultation from the public and other key stakeholders. The completion of this environmental review process now allows the Ruby Creek Project to enter the final approval stage for operating a tailings impoundment area through a Schedule 2 Amendment to the Metal Mining Effluent Regulations. This process is conducted by Fisheries and Oceans Canada with assistance from Environment Canada. The Company expects this final approval to be received by the end of 2009. This is the final permit required to commence mining operations. All other necessary construction permits and approvals have been received by the Company.

About Adanac Molybdenum Corporation

Adanac Molybdenum Corporation is an exploration and development mining company listed on the TSX and Frankfurt exchanges. The Company's principal asset is its 100%-owned Ruby Creek open-pit molybdenum mine project located in northern British Columbia, Canada. The Company has advanced the project through feasibility studies, a production decision and has previously ordered long-lead equipment, completed permitting for construction, constructed a road to the site and secured US$80 million in bridge financing. For more information on the Company, please visit

Cautionary Notice: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States securities laws. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking information. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward looking information include risk factors discussed in the Annual Information Form for the year ended April 30, 2008 for the Company available at Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities law, and may not be offered or sold in the United States unless an exemption from registration is available.

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