GOLDER'S REPORT ON RUBY CREEK PROJECT PRELIMINARY MINING STUDY DELIVERED

Wednesday, August 10th 2005 - Vancouver, British Columbia (MOLY @ 29.75US/lb)

Adanac Moly Corp. (AUA:TSX.V) ("Adanac") reports it has received the Mining Report on its Ruby Creek Molybdenum Project from Golder Associates (Toronto). This preliminary feasibility mine design has been developed for a 20,000 tonne per day milling operation over a twenty year mine life. The main points of the report are:

- The geological foundation of the mining model is based on the NI 43-101 resource study and report done by AMEC Americas Limited (see Adanacs news release dated April 11th, 2005).

- This mining model considers the molybdenum grade and a variable recovery based on head grade.

- Pit optimizations were completed with the set of economic factors developed from the previous conceptual studies, for a range of molybdenum (Mo) prices of $4 US per pound to $30 US per pound. It was envisaged that a range of $5 - $10 US per pound would be appropriate, but the analysis at a wider range of prices was performed to locate infrastructure.

- The pit optimizations were run with a 45 degree overall wall slope angle. The initial results showed that a pit shell encompassing 138 million tonnes of measured and indicated resource grading 0.065% Mo at a 0.04% Mo mining cutoff grade provided the best economic return.

- The average mining cost is estimated to be $1.57/tonne mined.

- The initial mining capital cost is estimated to be $26.5 million.

- A base price of $7 US per pound Mo was used for all tonnage calculations and cutoff grade determinations.

The proposed starter pit has been designed so that the higher grade portions of the resource near surface can be mined in the first four years. There is approximately 26.7 million tonnes grading 0.084% Mo which can be mined and fed to the mill for the first four years of operations at a stripping ratio of 0.48:1. This will reflect favorably on the economics of the operation in its early years.

Further details of this and the other sections of technical and socio-economic aspects of this project will be made available on completion of the comprehensive preliminary feasibility which is nearing completion.

The Company will be reporting on the other two components (see press release dated May 6, 2005) of the pre-feasibility study when the in-house engineering staff completes their review.

On Behalf of Management

ADANAC MOLY CORP.

"Larry W. Reaugh"
President and Chief Executive Officer

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