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RUBY CREEK PROJECT UPDATE
March 19, 2008 - Vancouver, British Columbia
On January
28, 2008 Michael MacLeod, Chief Executive Officer of the Company, announced
that the Company has temporarily suspended its field construction activities at
its Ruby Creek Project (the �Project�) near Atlin,
British Columbia, pending the putting into place of a bridge financing (the
�financing�) which is being negotiated by its financial agents. The Company�s US
financial agents have been working diligently on securing up to $80 million in
bridge financing which forms part of the $650 million capital expenditures to
fund the 23,000 TPD mine and mill construction at Ruby Creek. The US
agents have received a term sheet from an interested major institution but the
terms are not in line with Adanac�s ability to move
the project forward on its existing obligations. The US agent is attempting to
restructure the terms on a more positive basis while continuing discussions
with other interested parties. Adanac has positioned itself to be one of the
few mining projects capable of proceeding to production over the next eighteen
months. The Company has received notice that four of its suppliers have filed
builders� liens on the Project totaling approximately $3,000,000. These claims
are not in dispute and will be paid by the Company in the ordinary course of
business from its expected financing.
Adanac�s salient features are:
F0B7
Long lead items have been ordered and
are scheduled to be delivered throughout 2008 and early 2009 (If ordered today,
lead times for several of the items have increased to between 36 and 48 months).
F0B7
Updated technical report has been
completed (see news release dated December 6, 2007) and confirms positive
economics of the Ruby Creek Project. The Ruby Creek Project is projected at
23,000 TPD for a 21 year mine life with pay back from the 5 year high grade
starter pit in 3.2 years.
F0B7
Detailed engineering by Amec PLC is about 60% complete.
F0B7
Adanac received its permit approving
its pre-construction work program at Ruby Creek on December 24, 2007. The
permit to construct is imminent and requires a $3 million bond.
F0B7
Adanac is currently working with the
responsible agencies to complete the Federal comprehensive review by the 4th
quarter 2008.
F0B7
Adanac received its Environmental
Assessment Certificate from the British Columbia Government on September 10, 2007. A major milestone for
the Company.
F0B7
Exploration diamond drilling outside
the pit area to the north, south and west has identified significant molybdenum
mineralization up to 256
meters grading .08% Mo in the north wall of the pit.
Once resources are established on these mineralized areas years could be added
to the life of the mine.
F0B7
The Company continues to negotiate an
Impact Benefits Agreement with the Taku-River Tlingit
whom have been very supportive of the Ruby Creek Project.
F0B7
Supply and demand factors continue to
influence the price of molybdenum positively as the price per pound of
molybdenum remains in the $33 to $34 per pound range.
The
capital markets have been undergoing significant turbulence and uncertainty.
The resulting instability in the financial markets has made it much more
difficult to obtain financing for major projects. Although the backlash has
been disruptive, projects like Ruby Creek are gaining significant attention as
a result of the advanced state of the project.
On Behalf of Management
ADANAC
MOLYBDENUM CORPORATION
Michael
MacLeod
President & Chief Executive Officer
Information Contact
Michael
MacLeod
President & CEO
Head Office: Suite
200 � 2055 152 Street, Surrey,
B.C. V4A 4N7
�� Telephone: 604-535-6834
Facsimile: 604-536-8411
Corporate Office: 2A 15782 Marine Drive,
White Rock, B.C. V4B 1E6
�� Telephone: 604-531-9639
Facsimile: 604-531-9634
Email: info@adanacmoly.com
The
Toronto Stock Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.
www.adanacmoly.com
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