Adanac Molybdenum closes $68.5-million bridge financing

2008-05-27 15:04 PT - News Release

Dr. David Stone reports:

ADANAC CLOSES BRIDGE FINANCING; ADANAC MOLYBDENUM CORPORATION CLOSES THE PREVIOUSLY ANNOUNCED BRIDGE FINANCING PRIVATE PLACEMENT; PROCEEDS TO BE USED TO PARTIALLY FUND EQUIPMENT PURCHASES, DETAILED ENGINEERING, CONSTRUCTION PLANNING AND CORPORATE OVERHEAD FOR THE DEVELOPMENT OF THE PROPOSED RUBY CREEK PROJECT.

Adanac Molybdenum Corporation ("Adanac" or the "Company") today confirmed it has closed the previously announced financing. At closing, the Bridge Financing will be funded to $68.5 million. The Company has the option to increase the Bridge Financing up to a total of $80 million at any time prior to May 30, 2008. The proceeds will be used to fund continued development of the company's proposed Ruby Creek molybdenum project.

The financing is in the form of senior secured notes issued pursuant to a Securities Purchase Agreement signed on 23 May, 2008. The agreements related to the financing will be filed on SEDAR. Under the terms of the financing the Company will grant, in total, warrants to subscribe for a number of shares of Common Stock equal to 21.4054% of the fully-diluted outstanding shares of Common Stock of the Company. The Warrants will expire the earlier of either three (3) years after the closing by the Company of the contemplated raise to secure the balance of the financing to build the project in convertible debt and/or high yield debt, or five (5) years from the date of issuance.

This financing was arranged through Adanac's United States based investment banker and includes participation from leading global institutional investors. Securing the balance of the funds required to build the mine, mill and related infrastructure is scheduled to be completed by the fourth quarter of 2008.

"This financing enables Adanac to continue its engineering and construction planning activities and take possession of processing equipment we have ordered for the molybdenum mine. It represents a strong vote of confidence from the financial market for building the project," said Dr. David Stone, CEO.

Adanac Molybdenum Corp. is engaged in the exploration and development of mines to produce molybdenum and other ferro-alloy metals. Its flagship property is the Ruby Creek molybdenum project located near Atlin, BC. The property contains an open pit reserve of 157.7 million tonnes grading 0.058% Mo using a 0.040% cut-off grade. This news release has been reviewed by Michael MacLeod, P.Eng. a qualified person pursuant to National Instrument 43-101 and the President and Chief Operating Officer, of the Company.

On Behalf of Management

ADANAC MOLYBDENUM CORPORATION

David Stone, Chief Executive Officer

This release is not an offer of securities for sale in the United States.

Any securities that the Company may offer for sale in the future may not be offered or sold in the United States unless registered under the United States Securities Act of 1933 or unless an exemption from registration is available.

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 Stock Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT INFORMATION:

Adanac Molybdenum Corporation

David Stone

CEO

(604) 535-6834

Fax: (604) 536-8411

or

Adanac Molybdenum Corporation

Corporate Office

(604) 531-9639

Fax: (604) 531-9634

Email: info@adanacmoly.com

Website: www.adanacmoly.com

We seek Safe Harbor.