RUBY CREEK UPDATE: PROJECT ENTERS ENVIRONMENTAL ASSESSMENT REVIEW PROCESS. COMPANY APPLIES FOR MINING LEASE

August 15, 2006 - Vancouver, British Columbia

Mr. Larry W. Reaugh, President & CEO, Adanac Moly Corp. (TSX.V: AUA, Frank: A9N) ("ADANAC"), is pleased to announce the Company has been notified by the Environmental Assessment Office that its Application has been accepted.

The Environmental Assessment Office (EAO) has reviewed ADANAC'S revised Application for an environmental assessment Certificate (Application) submitted July 17, 2006 and notes that the Company has satisfactorily addressed the comments outlined in the screening table provided to ADANAC on 5 June 2006.

In accordance with the Section 11 Order dated 20 March 2006 ADANAC has provided electronic and hard copies of the Application to members of the technical working group. The formal initiation of the review period started 4th August. The Company will have opportunities to respond to issues, or where requested by the Project Assessment Director, to supplement the information provided in the Application during the formal review of same.

The EAO also notes that the start date for the public comment period will be set at least seven days after ADANAC publishes the first Public Notice.

The Company has applied to the Chief Gold Commissioner for BC for a mining lease to cover the pit operations, concentrator area, waste dumps and tailings area with sufficient buffer zone to cover all ancillary services (roads, diversion ditches, etc.) at the Ruby Creek site. The mineral claims have been surveyed by, Mr. Bruce Underhill, BCLS (Underhill Geomatics, Ltd.), whose field notes and plans have been approved by the Surveyor General.

The following mineral claims are subject to the mining lease application.

• Tenure Numbers: 510307, 510308, 510309, 510310, 510315, 510317 (Atlin Mining Division)

• Minerals Titles Map Number: 104N074

• Lot Number: 7348

• Cassiar District

The application was posted at the Chief Gold Commissioner's office in Victoria, BC on 28th July, 2006. Drilling within the high grade pit area is continuing with 10 holes of the 12 holes completed. Vertical fracturing has been observed in the -50o holes with initial results expected in the next 10 days.

This press release has been reviewed by John W. Fisher, C.Eng., P.Eng., an independent qualified person as defined by NI43-101. Mr. 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.

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