Adanac's Ruby Creek Mining Feasibility Boosts Molybdenum Production to 68 Million lbs in First Six Years.

VANCOUVER, British Columbia -- Adanac Moly Corp. (TSX VENTURE:AUA) ("Adanac") is pleased to report Golder Associates Ltd. ("Golder") have completed the Ruby Creek Mining Feasibility based on the updated resource estimates reported in the press release of February 16, 2006 and geotechnical information obtained from the 2005 field program.

Golder's proposed design includes 5 phases. The proposed open pit design has been revised to mine Phase 1 through Phase 4, with the first phase cutoff grade increased from 0.040% Mo to 0.060% Mo to assist with increased molybdenum production in the initial years to facilitate rapid payback of capital costs. These data indicate an average mill feed grade of 0.079% Mo for the first six years of operation which translates to annual average production of 11.3 million lbs Mo (18.83 million lbs MoS2).

The final Phase 5 is marginal based on a molybdenum price of US $7/lb, but can add over 20 million lbs Mo production and extend the mine life by four years. A decision to mine this Phase would be made after year 13 and would be based on the prevailing economic conditions at the time.

The revised updated design changes both capital and operating costs estimates as shown in the Table below:

MINE CAPITAL & MINE OPERATING COST ESTIMATES COMPARISON (2006 & 2005)
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                           (ALL FIGURES IN $CDN)
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                          PRELIMINARY
             FEASIBILITY  FEASIBILITY
FACTOR             (2006)       (2005) COMMENTS
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Capital Cost
(Millions)          31.2         26.5  $4.7 Million increase (2006)
                                       Attributed to using more
                                       expensive 200 tonne trucks
                                       from year 1
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Operating Cost
($/Tonne Milled)    2.44         3.14  $0.70/tonne milled lower
                                      (2006) Attributed to lower
                                       hauling costs (larger trucks)
                                       and use of electric rope
                                       shovel after year 5
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Tonnage Milled
 (Millions)         43.6         43.6  Higher grade (0.092% Mo) in
Grade (% Mo)                           first 2 1/2 years (2006) and
Years (1-6)        0.079        0.076  slightly higher grade (2006)
                                       overall in first 6 years
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Tonnage Milled
 (Millions)        143.7        150.8  Contain lbs Mo equals
Grade (% Mo)       0.059        0.060  186,912,600 (2006) equals
(Mine Life)    (21 years)   (23 years) 199,472,200 (2005) @ 0.040%
                                       Mo mining cutoff grade
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Potential
 Phase 5 Tonnage  24.66                Potential additional
(Millions)                             Contained lbs Mo equals
Grade (% Mo)      0.043                23,381,000 (2006) @ 0.040%
                                       Mo mining cutoff grade
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Mr. Paul Palmer P.Geo., P.Eng and Mr. Kirk Rodgers, P.Eng both independent qualified persons as defined by NI-43-101 have supervised and coordinated Golder's mining feasibility work.

The Ruby Creek Project is a proposed open pit molybdenum mine situated 24 kilometers northeast of Atlin, BC, which would operate at 20,000 tonnes per day of ore for 20 plus years and have an overall footprint of approximately 830 hectares. The Company believes that the proposed mine is a sound project that will minimize any long term environmental effects and maximize socio-economic benefits to the local community, Taku River Tlingit First Nation and British Columbia.

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.

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

Adanac Moly Corp. (TSX VENTURE:AUA)