VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 04/07/2006 -- Mr. Larry W. Reaugh, President & CEO, Adanac Moly Corp. (TSX VENTURE:AUA)(FWB:A9N) ("Adanac"), is pleased to report successful completion of the feasibility for its Ruby Creek Molybdenum Project located near Atlin, B.C.

The result of the feasibility is positive, and Wardrop Engineering Inc. recommends continuing development through detailed engineering, which is set to commence during the 2nd quarter of 2006.

The feasibility is based on Golder Associates Ltd. updated Technical Report Mineral Resource Estimate for Ruby Creek Molybdenum Project prepared by Mr. Paul Palmer, P.Geo., P.Eng. (received February 8th, 2006), a qualified person in accordance with requirements described in the National Instrument NI 43-101 Standard of Disclosure for Mineral Projects.

The mineral resource estimate summary calculated using ordinary Kriging for feasibility (at cutoff grade of 0.04 % Mo):

Measured tonnes: 38.9 million at 0.079 % Mo
Indicated tonnes: 167.4 million at 0.059 % Mo
Total tonnes: 206.4 million at 0.063 % Mo

Of this, the mineable reserves are:
Proven tonnes: 38.9 million @ 0.077 % Mo
1.2 million @ 0.035 % Mo (stockpile)
Probable tonnes: 73.5 million @ 0.060 % Mo
30.1 million @ 0.034 % Mo (stockpile)
Total tonnes: 143.7 million @ 0.059 % Mo


The salient points of the study are drawn from work done by Golder Associates Ltd. (Golder), Wardrop Engineering Inc. (Wardrop), SGS-MinnovEX (MinnovEX) and Klohn Crippen Berger Consultants (Klohn).

Golder has developed a detailed mining evaluation, based on its geological model; geotechnical study completed in February 2006 and associated pit optimizations including economic pit shells. Their report was prepared by Kirk Rodgers, P.Eng., and Gordon Zurowski, P.Eng., independent qualified persons as defined by NI 43-101. Mr. Rodgers visited the Ruby Creek Property on June 21, 2005.

MinnovEX was contracted by ADANAC to do metallurgical test work for process simulations. Wardrop worked closely with MinnovEX to develop the process and infrastructure design. Wardrop's report was supervised and reviewed by Rick Alexander, P.Eng., an independent qualified person as defined by NI 43-101. Mr. Alexander visited the property on June 21, 2005.

Klohn successfully completed comprehensive site investigations and detailed designs for tailings dam, waste dumps and site water management. Klohn's report was prepared by Franky Li, MASc, P.Eng., and Howard D. Plewes, MSc, P.Eng., independent qualified persons as defined by NI 43-101. Mr. Plewes and Mr. Li visited the Ruby Creek property on June 22, 2005.

PROJECT SUMMARY
Mine Life: 21 years
Milling Rate: 20,000 tonnes per day
Strip Ratio: 0.95 (waste)/1.0 (ore)
Tonnage milled: 143.7 million tonnes, average grade 0.059 % Mo
Average Recovery: 89%
Molybdenum in concentrate: 75.9 million kilograms (167.4 million pounds)
Preproduction capital ($CDN): $434.4 million

The increase in pre-production capital is attributed to an accounting change which now books all pre-production mining costs as capital expenses rather than operating expense, and an increased working capital requirement.

Average operating cost ($CDN): Years 1-5, $11.61/tonne milled; Years 6-21, $8.05/tonne milled

The Ruby Creek ore is easily processed by using proven technologies to produce a premium quality MoS2 concentrate. Waste rock and tailings are mostly benign, and provision for sub-aqueous containment of any potentially acid generating waste rock is provided within tailings impoundment.

Electrical power for the project initially comes from on-site diesel generators. Replacement with grid electrical power is expecting by 2012.

To take advantage of the high metal price in the early years, an initial payback pit has been developed which will maximize Mo production in the first five years.

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