Adanac Molybdenum Corporation: Ruby Creek-Comprehensive Study Switched to Screening Assessment

Adanac Molybdenum Corporation was advised by the Government of Canada on September 29, 2008, that its Ruby Creek Molybdenum Open Pit Mine Project in northern British Columbia has changed permitting for production from a “Comprehensive Study” to a “Screening Level Assessment”.

The Project is permitted for construction by the Government of British Columbia and Adanac is currently sourcing project funding for a construction start in February 2009 with first production planned for October 2010.

Adanac is pleased that the Government of Canada has changed the permitting for production from a “Comprehensive Study” to a “Screening Level Assessment”, as this will likely expedite permitting for production, while providing adequate environmental review as well as input from groups who may be impacted.

The Company expects completion of Federal permitting for production, including Schedule 2 Amendment to the Metal Mining Effluent Regulations, during 2009; which is well before planned production start in October 2010.

Commenting on the notification Peter Jones, Adanac Chairman and CEO said, “This is excellent news, reflecting the valuable support of the Taku River Tlingit First Nation and the Community of Atlin.” He also said, “Construction permits are in place and the switch to screening for the production permit gives the Project more credibility during the fund raising stage.”

Adanac Molybdenum Corporation is listed on the TSX and Frankfurt exchanges and owns the Ruby Creek Molybdenum Project in northern British Columbia. 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. The Company is sourcing construction funding and expects a site construction start in February 2009 and production in Q4, 2010.