Adanac Molybdenum Corporation Enters Into Term Sheet

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/29/10 -- Adanac Molybdenum Corporation ('Adanac' or the 'Company') (TSX: AUA)(PINK SHEETS: AUAYF)(FRANKFURT: A9N) wishes to advise that the Company has entered into a Term Sheet with substantially all of its Senior Secured Noteholders. The Term Sheet will form the basis of a plan of compromise or arrangement and corporate reorganization to be filed under the Companies' Creditors Arrangement Act and the British Columbia Business Corporations Act, in a form acceptable to such Senior Secured Noteholders, which will be voted on by Adanac's creditors and will be subject to approval of the Supreme Court of British Columbia and applicable regulatory approvals. The Term Sheet provides that, among other things, following implementation of the Plan, the equity of the restructured Company will be allocated as follows:

1.  In satisfaction of the Senior Secured Notes, the Senior Secured
    Noteholders will receive 92% of the restructured Company's issued and
    outstanding common shares;
2.  In satisfaction of their claims, unsecured creditors, including the
    Senior Secured Noteholders for the shortfall in their secured claims,
    will receive 5% of the restructured Company's issued and outstanding
    common shares; and
3.  Current shareholders will retain 3% of the restructured Company's issued
    and outstanding common shares.

Interested parties are directed to the Court appointed Monitor's website at www.kpmg.ca/adanac where they will find a copy of the Term Sheet attached as an exhibit to affidavit #4 of Paul F. Nelson, President and CEO dated June 28, 2010. Capitalized Terms used in this Press Release are defined in the Term Sheet.

About Adanac Molybdenum Corporation

Adanac Molybdenum Corporation is listed on the TSX and Frankfurt exchanges and owns the Ruby Creek Project in northern British Columbia. The Company has advanced the project through feasibility studies, a production decision and has previously ordered long-lead equipment, completed permitting for construction, constructed a road to the site and secured US$80 million in bridge financing.

Cautionary Notice: This news release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation and United States securities laws. Generally, forward-looking information can be identified by the use of forward-looking terminology such as 'plans', 'expects', or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', or 'does not anticipate', or 'believes' or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might', or 'will be taken', 'occur', or 'be achieved'. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking information. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward looking information include risk factors discussed in the Annual Information Form for the year ended April 30, 2008 for the Company available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities law, and may not be offered or sold in the United States unless an exemption from registration is available.

Contacts:

Adanac Molybdenum Corporation

Paul F. Nelson

President and Chief Executive Officer

(604) 535-6834

(604) 536-8411 (FAX)
info@adanacmoly.com
www.adanacmoly.com