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Adanac receives design plans for Ruby Creek project

2006-02-16 15:04 ET - News Release

Mr. Larry Reaugh reports

GOLDER COMPLETES RUBY CREEK UPDATED RESOURCE ESTIMATES

Adanac Moly Corp. has received the updated technical report, which details the Ruby Creek mineral resource estimates, from Golder Associates Ltd., in accordance with requirements described in National Instrument 43-101 standards of disclosure for mineral projects. The tonnages and grades are from Golder, 2006.

Table 1 -- Ruby Creek, January, 2006, mineral resource estimate and Amec's 2005 estimate:

Resource   Cut-   Tonnage   Mo (%)

category   off

          (Mo %)

Measured   0.02  40,636,000  0.077

           0.03  40,636,000  0.077

           0.04  38,942,000  0.079

           0.05  35,834,000  0.081

           0.06  28,836,000  0.088

           0.07  22,593,000  0.094

           0.08  15,225,000  0.104

           0.09  10,601,000  0.112

           0.10   6,908,000  0.121

Indicated  0.02 432,936,000  0.041

           0.03 261,618,000  0.051

           0.04 167,433,000  0.059

           0.05 113,435,000  0.066

           0.06  63,101,000  0.076

           0.07  37,572,000  0.083

           0.08  17,543,000  0.094

           0.09   8,808,000  0.103

           0.10   4,151,000  0.113

Subtotal

measured

and

indicated  0.02 473,572,000  0.044

           0.03 302,004,000  0.054

           0.04 206,375,000  0.063

           0.05 149,269,000  0.070

           0.06  91,937,000  0.080

           0.07  60,165,000  0.087

           0.08  32,768,000  0.099

           0.09  19,409,000  0.108

           0.10  11,059,000  0.118

Inferred   0.02 151,326,000  0.034

           0.03  61,837,000  0.048

           0.04  33,067,000  0.060

           0.05  23,225,000  0.067

           0.06  13,375,000  0.076

           0.07   6,490,000  0.088

           0.08   3,166,000  0.102

           0.09   1,915,000  0.113

           0.10   1,143,000  0.124

Resource   Cut-   Mo (lb)      Mo (lb)

category   off   (Golder,      (Amec,

          (Mo %)   2006)        2005)

Measured   0.02  68,982,000  60,500,000

           0.03  68,557,000  59,000,000

           0.04  67,822,000  56,200,000

           0.05  63,990,000  52,100,000

           0.06  55,942,000  48,300,000

           0.07  46,820,000  40,800,000

           0.08  34,907,000  33,300,000

           0.09  26,175,000  25,900,000

           0.10  18,427,000  18,400,000

Indicated  0.02 391,325,000 380,700,000

           0.03 294,149,000 290,600,000

           0.04 217,782,000 221,900,000

           0.05 165,052,000 163,500,000

           0.06 105,725,000 108,000,000

           0.07  68,751,000  60,200,000

           0.08  36,355,000  31,900,000

           0.09  20,001,000  15,900,000

           0.10  10,340,000   5,800,000

Subtotal

measured

and

indicated  0.02 460,307,000 441,200,000

           0.03 362,706,000 349,600,000

           0.04 285,604,000 278,100,000

           0.05 229,042,000 215,600,000

           0.06 161,667,000 156,300,000

           0.07 115,571,000 101,000,000

           0.08  71,262,000  65,200,000

           0.09  46,176,000  41,800,000

           0.10  28,767,000  24,200,000

Inferred   0.02 113,429,000 229,500,000

           0.03  65,437,000  59,100,000

           0.04  43,740,000  26,000,000

           0.05  34,305,000  17,300,000

           0.06  22,409,000  11,700,000

           0.07  12,591,000   7,200,000

           0.08   7,120,000   3,800,000

           0.09   4,771,000   1,700,000

           0.10   3,124,000     700,000

The technical report has been prepared in compliance with form NI 43-101F and is the revised estimate of the Ruby Creek mineral resource developed to include data from the 2005 drilling program in addition to the earlier drill hole information reported in Amec's technical report dated May 10, 2005 (see Stockwatch, May 12, 2005). The January, 2006, mineral resource estimate has increased the tonnage in the measured and indicated resource categories from the previous estimates by Amec (May, 2005). These differences in pounds contained molybdenum (6 per cent to 10 per cent) provide confirmation of the previous estimate.

The positive increases in tonnages and contained pounds molybdenum in the measured and indicated categories are attributed to the 2005 drilling program, which increased the confidence in the resource and increased tonnage at depth. These increases in contained pounds molybdenum occur mostly in the measured category and is attributed to the results of the 2005 drilling program. The overall increases (measured and indicated categories) at cut-offs 0.04 and 0.05 are shown in Table 2.

Table 2 -- increases in pounds molybdenum contained in measured and indicated categories:

Cut-off Grade   Measured    Indicated

(Mo %)  (Mo %)  (Mo lb)     (Mo lb)

0.04    0.063   11,622,000 (4,118,000)

0.05    0.070   11,890,000  1,552,000

Cut-off  Grade    Overall increase

(Mo %)   (Mo %)      (Mo lb)

0.04     0.063       7,504,000

0.05     0.070      13,442,000

The 2005 drilling campaign included an extensive program of quality assurance and control. The sampling and assaying control was rigorous to ensure accuracy and precision, freedom from contamination and maximum control. Golder transferred the 2004, and earlier, drill hole and sampling database into Datamine. It added information from the 2005 drilling program. All drill hole information was validated through a checking program which remeasured 5 per cent of the database. These updated data have been developed by Paul Palmer, PGeo, PEng, who visited the project site Aug. 24, 2005, and Aug. 25, 2005. He is an independent consultant and qualified person pursuant to National Instrument 43-101.

The Ruby Creek project is a proposed open-pit molybdenum mine situated 24 kilometres northeast of Atlin, B.C., which would operate at 20,000 tonnes per day of ore for more than 20 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.

The SGS-MinnovEX (formerly MinnovEX Technologies Inc.) and Golder reports are part of the final feasibility report expected at the end of the month. This press release was prepared by John W. Fisher, CEng, PEng, a qualified person pursuant to National Instrument 43-101.

We seek Safe Harbor.

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