Adanac Moly Corp. - Secular Bull - Focused Investments

PRELIMINARY FEASIBILITY COMPLETED: RUBY CREEK MOLYBDENUM PROJECT EMBARKS ON DETAILED (FINAL) FEASIBILITY

September 1st, 2005 - Vancouver, British Columbia

Adanac Moly Corp. (AUA-TSX.V) is pleased to report successful completion of the preliminary feasibility for its Ruby Creek Molybdenum Project located near Atlin, BC.

The basis for this initial phase is the measured and indicated resource estimate of molybdenite (MoS2), determined at 0.04% Mo cut-off grade, received from AMEC Americas Limited ("AMEC"), in their Technical Report-Mineral Resource Estimate Ruby Creek Project, on May 10, 2005. That report was prepared to NI43-101 compliance by Steven John Blower, M.Sc., P.Geo., an independent qualified person (as defined by NI43-101). The summary is shown below:

Summary Of Resource Estimate Used For Prefeasibility [At Cut-Off Grade = 0.04% Mo]

The salient points of the study are drawn from work done by Golder Associates Ltd. (GOLDER"), Wardrop Engineering Inc. ("WARDROP"), MinnovEX Technologies Inc. ("MINNOVEX") and Klohn Crippen Consultants ("KLOHN CRIPPEN").

GOLDER developed a preliminary mining evaluation, based on AMEC's geologic model, and associated pit optimizations including economic pit shells (see ADANAC's earlier press release of August 10, 2005). GOLDER'S report was prepared by Kirk Rodgers, P.Eng. & Gordon Zurowski, P.Eng., independent qualified persons as defined by NI43-101. Kirk Rodgers visited the Ruby Creek property on June 21, 2005.

WARDROP worked closely with MINNOVEX, who were contracted by ADANAC to do metallurgical test work for process design, and also developed infrastructure design (reported in ADANAC's press release of August 16, 2005). WARDROP'S report was supervised and reviewed by Rick Alexander P.Eng an independent qualified person as defined by NI43-101. Rick Alexander visited the property on June 21, 2005.

KLOHN CRIPPEN successfully completed preliminary feasibility for tailings dam, waste dumps and site water management (see ADANAC's press release dated August 4, 2005). KLOHN CRIPPEN's report was prepared by Franky Li, M.A.Sc., P.Eng. and Howard D. Plewes. M.Sc., P.Eng., independent qualified persons as defined by NI43-101. Howard D. Plewes visited the Ruby Creek property on June 22, 2005.

Mine Life:22 years
Milling Rate:20,000 tonnes per day
Tonnage Milled:150.8 Million tonnes
Molybdenum in concentrate:80 Million kgs (176.4 Million lbs)
Pre-production Capital:C$414 Million
Average Operating Cost:C$10.93/tonne milled

To accelerate the project development schedule, electrical power will come, initially, from diesel generators. This has added significantly to the capital and operating costs in the preliminary feasibility. Management is confident that the ongoing detailed engineering work will lead to reduced costs. 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. The estimated metal production, operating cost, projected molybdenum prices and gross margins are summarized in the following table.

In the long term prices are expected to revert to US$5-8/lb Mo. A pre-tax economic model has been developed by WARDROP from the estimated costs and the open pit production schedule. The Base Case has an IRR of 28.49% and an NPV of C$207 million at a 10% discount rate for the 22 year mine life. The payback of the initial capital is within 3 years.

The Base Case is for a start up in the last quarter of 2007. A delay of 1 year to the 4th quarter of 2008 reduces the IRR to 21.01% and the NPV at 10% to C$94 million. Additional economic sensitivities were run for variations in price, capital cost and operating cost, and the comparative indicators are summarized in the table below:

Mr. Alexander P.Eng. has reviewed this press release and concurs with the pre-tax economics as shown in the above table.

The preliminary feasibility provides a firm basis for continuing detailed engineering work. Power requirements are now reliably estimated to be 40% lower than determined (on an arbitrary basis) previously. Technology incorporating more efficient use of equipment and power is now available.

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 (milled) per day 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.

GOLDER have recommended additional detailed geotechnical studies and revised pit optimization; WARDROP have identified potential opportunities offering significant economic benefits through use of newer technologies and KLOHN CRIPPEN propose follow-up of opportunities for cost reductions affecting tailings, waste dump and site water management facilities.

ADANAC's goal is to become a producer as soon as possible. Management will continue to retain the engineering consulting companies who contributed successfully to the preliminary feasibility. Engineering is underway as contracts are awarded and completion of a bankable feasibility is expected by January, 2006.

The technical information contained in this press release is compiled by John W. Fisher C. Eng. P.Eng. An independent qualified person as defined by NI43-101. John W. Fisher visited the Ruby Creek property on June 21, 2005.

On Behalf of Management

ADANAC MOLY CORP.

"Larry W. Reaugh"
President and Chief Executive Officer

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