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Government Ministry News Release Regarding Adanac's Ruby Creek Property

INFORMATION BULLETIN

For Immediate Release

2007ENV0104-001099

Sept. 11, 2007

Ministry of Environment

RUBY CREEK MOLYBDENUM MINE APPROVED

VICTORIA - Adanac Molybdenum Corporation (the proponent) has received an environmental assessment (EA) certificate for construction and operation of a new open pit molybdenum mine and processing plant (the project) located approximately 20 km northeast of Atlin.

The proposed project includes an open pit mine that would operate at 20,000 tonnes per day for more than 20 years. Project components include open pits, a tailings impoundment, waste rock storage facilities, site runoff, water diversion and sediment control; borrow pits, and overburden and topsoil storage; and a mill, an employee accommodation facility and other facilities such as sewage treatment and landfill.

Environment Minister Barry Penner and Energy, Mines and Petroleum Resources Minister Richard Neufeld made their decision to grant the EA certificate after considering the details of a comprehensive review led by B.C.'s Environmental Assessment Office (EAO).

The Taku River Tlingit First Nation participated in the technical working group and was involved in all aspects of the review.

The EAO Assessment Report concludes that effects from the project will be within acceptable levels, subject to adherence to the application's design components and implementation of mitigation measures and commitments agreed to by the proponent.

Federal agencies were involved in the co-operative B.C.-Canada review, and the federal environmental assessment is ongoing. A conclusion on the federal screening report is expected in the near future.

Before the project can proceed, the proponent will need to obtain the necessary provincial licences, leases and other approvals. The provincial environmental assessment certificate contains 190 commitments that the proponent must implement throughout the various phases of the project.

Some key commitments include:

- Implementing a monitoring and adaptive management plan for wildlife.

- Rehabilitating wildlife habitat disturbed by the mine.

- Implementing a fish habitat compensation plan.

- Ensuring groundwater and surface water quality meet provincial environmental standards.

- Locating the mine employee camp away from the community of Atlin wildlife and conducting a fly-in/fly-out operation.

- Assisting the community of Atlin and the Taku River Tlingit in the development of a Community Adaptive Management and Monitoring Plan.

- Supporting the Taku River Tlingit's initiative to establish a Tlingit Cultural Enhancement Program.

The project's capital costs are approximately $414 million. Over the life of the mine, $68.5 million will be spent for capital equipment replacement and to sustain operations. Annual operating costs are estimated at $79.1 million. The project will create approximately 550 jobs during the construction phase and approximately 250 direct jobs during the operations phase. Construction is expected to take approximately two years and, once in production,the mine is expected to operate for more than 22 years.

More information on the environmental assessment certificate can be found at www.eao.gov.bc.ca.

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